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TMI Blog2017 (12) TMI 1330X X X X Extracts X X X X X X X X Extracts X X X X ..... sued by the assessee company dated 30.04.2000 to Assistant Director, STPI, Noida intimating date of commencement for production of sale in global market as 30.04.2000 has not been disputed by the Revenue rather entire assessment has been made on the basis of token invoice dated 31.03.2000 issued for trial verification by the assessee company. Furthermore, section 10B of the Act is categoric enough to provide liberty to the assessee company to choose the claim of deduction u/s 10A in respect of newly established 100% export oriented unit. So, we are of the considered view that when the assessee company has only issued the first token invoice of US $ 1050 as cost for trial verification and has opted to avail of the exemption u/s 10A in AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rk of India (STPI). Assessee company claimed exemption under section 10A of the Income-tax Act, 1961 (for short the Act ) to the tune of ₹ 49,94913/-. During the assessment proceedings, the AO called upon audit report wherein the date of commencement of manufacture or production was given as 30.03.2000. AO, after treating the business of the assessee company having been commenced during the previous year 1999-2000, the first assessment year considered as AY 2000-01. AO on the basis of material brought on record proceeded to conclude that AY 2000-01 being the first year of exemption u/s 10A of the Act, the last year of exemption would be AY 2009-10 and not AY 2010-11 as claimed by the assessee company and thereby disallowed the exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nished by the assessee company during assessment proceedings. 8. Ld. AR for the assessee contended that the token invoice dated 30.03.2000, available at page 10 of the paper book, was issued as cost for trial verification whereas the date of commencement of production of sale in global market as per letter issued to the Assistant Director, STPI, Noida, available at page 7 of the paper book, is 30.04.2000. 9. Hon ble High Court of Delhi while deciding the identified issue in case cited as CIT vs. Nestor Pharmaceuticals Ltd. (2010) 231 CTR 0337 held that trial production is different from commercial production and the benefit of exemption provision is allowable from the date of commercial production. 10. Identical issue ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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