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2011 (12) TMI 413 - AT - Income TaxRevision u/s 263 - Deduction u/s 10B - 100% EOU - Held that: the assessing officer had passed the order under section 143[3] of the Act, on 9-11-2009, whereas the circular issued by the CBDT, based on which the CIT declined the exemption under section 10B of the Act, was on 6-1-2005 - Non consideration of the circular issued by the CBDT is clearly falls in the category of non-application of mind by the assessing officer in passing the assessment order under discussion. Hence, it is clear that the assessing officer had not applied his mind while granting the exemption under section 10B of the Act. In the case under consideration, there are no two opinions possible. Hence, the action under section 263 of the Act is valid in law. There are no two possible ways of interpreting section 10B of the Act in the instant case. - Revision u/s 263 upheld. Whether the period of ten consecutive assessment years is to be reckoned from the date of commencement of the manufacturing as a DTA Unit or from the date of commencement of manufacture as a EOU Unit. - held that:- since the assessee has availed deduction under section 10B of the Act for only one assessment year 2000-01, the benefit is available for balance 9 years is not correct - on plain reading of the aforesaid circular, the exemption period ends at the tenth year of its commissioning whether as DTA unit or EOU unit. - in the circular, certain illustrations were given to clarify the intention of the circular and even from such illustrations it is clear that the ten year period is to be reckoned from the date of its original commercial production. - Decided against the assessee. Fresh claim during the proceedings under section 263 of the Act. - held that:- the CIT was right in rejecting the fresh claim made by the assessee that it has gone for massive expansion and hence, the same should be considered as setting up of new unit which would be entitled for deduction under section 10B of the Act. Even otherwise, on expansion, such benefit cannot be claimed whatever may be the addition to plant and machinery or enhancement of the production capacity. - Decided against the assessee.
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