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2014 (3) TMI 1022 - AT - Income TaxDeduction u/s 10B denied - Held that:- CBDT vide Circular No. 1/2005 had clarified that an undertaking set up in Domestic Tariff and which derives profit from export of articles or things or computer software manufactured or produced by it shall be eligible for deduction u/s. 10B of the Act on getting approval as 100% EOU and in the year of approval the deduction shall be restricted to the profits derived from exports from and after the date of approval of the DTA unit as 100% EOU. CIT(A) has also given a finding that Assessee was granted 100% EOU status with effect from 1/11/2002 and its claim for deduction u/s. 10B would be eligible for the period 1/11/2002 to 31/03/2003. The aforesaid finding of CIT(A) has not been controverted by Revenue by bringing any contrary material on record. With respect to various income on which Assessee has claimed deduction, we find that Assessee has submitted the details of other income which is also reproduced hereinabove. The ld. A.R. has submitted tht the issue with respect to income from DEPB Duty Draw Back, DEPB Duty Draw Back difference are covered against the Assessee in view of the decision of Apex Court in the case of Liberty India (2009 (8) TMI 63 - SUPREME COURT ). Thus the Assessee would not be eligible for deduction under section 10B on the aforesaid items With respect to other incomes other than those covered against the Assessee, it is submitted that the same are covered in favour of Assessee by the various decisions cited hereinabove. From the table it is seen that Assessee has bifurcated the income into 2 periods up to the period of granting of EOU status and subsequent to it. We are of the view that these factual aspect needs verification at the end of A.O. We therefore remit the issue to the file of A.O. for fresh examination of the claim of Assessee , the bifurcation of income into 2 periods in the light of the decisions cited by Assessee and thereafter decide the issue as per law and after giving a reasonable opportunity of hearing to the Assessee. The Assessee shall be at liberty to furnish additional evidence before A.O. Thus this ground is allowed for statistical purposes.
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