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TMI Blog2018 (6) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... ategory of back office operation and in the audit report it is also mentioned that assessee is doing research and development work related to drugs and healthcare. But both authorities have not ascertained to the effect that what actually assessee is doing. Therefore, we set aside the orders of the CIT(A) in both appeals and remit this matted back to the file of the ld. AO to decide the nature of business of the company. - Decided in favour of revenue by way of remand. - I.T.A. Nos. 1214 & 2907/AHD/2012 - - - Dated:- 26-2-2018 - Shri N.K. Billaiya, Accountant Member And Shri Mahavir Prasad, Judicial Member Appellant by : Shri V. K. Singh, Sr.D.R. Respondent by : Shri Sanjay Majmudar, A.R. ORDER Per Mahavir Prasad, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been computed at Rs.NIL. To ascertain the veracity and genuineness of exemption claim, various details were called for by the ld. AO. From the analysis of various facts and information on record , facts considered and details furnished by the assessee during assessment proceedings, it transpired that assessee may not be eligible for exemption u/s.10B and hence, clarification regarding exemption u/s.10B called for on 22/11/2010 as to why claim for deduction u/s.10B should not be rejected. The same is reproduced below: You are requested to furnish the following information/explanation documents:- 1) Explain why the claim of the assessee for deduction u/s. 10B should not be disallowed as the assessee has not made export of any artic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d accordingly it is exporting services of research and development on contract chemistry, biology and combination chemistry through computer network. (b) The CBDT has specifically notified the information technology enabled products or services including back office operations as part of the services for considering the items u/s.10b In customized electronic data or product or services of similar nature. Thus, for the purpose of considering the services provided by the assessee company, it is very much covered u/s.10B of the Act as per the notification of CBDT. (c) Again, the assessee has received permission from the Development Commissioner, Kandla Special Economic Zone, Ministry of Commerce, Govt. of India. As per the said permissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction under sub-section (1) shall not be admissible for any assessment year beginning on or after the 1st day of April, 2001, unless the assessee furnishes in the prescribed form27, along with the return of income, the report of an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this section . 5.2 Further, according to sub-section 8(iv) of section 10B of the I.T. Act the assessee company has not produce any approval taken by Appropriate Authority as per provision of this section, which reads as below ; hundred per cent export-oriented undertaking means an undertaking which has been approved as a hundred p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture or produce articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee. 10. On the other hand, ld. CIT(A) gave relief to the assessee on the basis that assessee was having unit in SEZ and same was approved by the development Commissioner, Kandla Special Economic Zone as 100% export oriented unit and the same was ratified by the Board of approvals for EOU schemes and hold that the assessee s case is covered by the CBDT instruction bearing file no.178/19/2008-ITA-I dated 09/03/2009. 11. In our considered opinion, both the lower authorities have been failed to ascertain that what assessee is actually doing and just bury the lead. Assessee is claiming that he has been doing rese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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