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2008 (7) TMI 979 - HC - Income TaxDeduction u/s 10B - Not a newly established undertaking - specified conditions were not fulfilled - Tribunal affirming the order of the CIT(A) in directing the AO to allow deduction u/s 10B - HELD THAT:- In the present case, the assessee had started the development of computer software in the assessment year 1998-99 and was registered with the Software Technology Park with effect from 24-3-2000, therefore, the 10 years period has to be reckoned from the assessment year 1998-99. The assessee has claimed exemption for the first time in the assessment year 2001-02, which is well within 10 years. Therefore, the unit of the assessee cannot be denied the said exemption on the ground that it is not the newly established undertaking in the assessment year in question. It is well-settled law that headings or titles prefixed to sections or group of sections can be referred to in construing an Act of the legislation, only when the enacting words are ambiguous, but when the language of the section is clear, then the heading cannot be used to give a different effect to clear words in the section. In our view, there is no ambiguity in section 10B of the Act, which provides exemption to certain newly established hundred per cent export-oriented undertakings, on fulfilling certain conditions, for a period of ten consecutive assessment years. The initial year is the year in which the eligible undertaking begins to manufacture or produce articles or things or computer software, section 10B of the Act does not provide any restriction that in each of the years of claim, the export-oriented undertaking should be newly established. Indeed, relevance of "newly established undertaking" is only to identify the initial year of that period of ten years for which the assessee is eligible for claim of exemption under section 10B of the Act. Since in the present case, undisputedly the initial year is the assessment year 1998-99, therefore, the assessee was rightly held to be fully eligible for exemption under section 10B of the Act for the assessment year under consideration i.e., 2001-02, as it was the fourth year, out of ten years beginning with the initial assessment year, in which it began to develop and export the computer software. Therefore, there is no merit in this appeal, as no substantial question of law arises from the impugned order. Dismissed.
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