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2014 (10) TMI 146 - HC - Income TaxGrant of deduction u/s 10B – Registration with STPI - Whether the Tribunal was right in holding that the registration with STPI is not a pre-requisite for grant of deduction u/s 10B – Held that:- Assessee is a company engaged in software development, has applied for registration as 100% Export Oriented Unit on 24.3.2005 before the competent authority and got the approval in May, 2005 - The assessee claimed benefit of exemption u/s 10-B of the Act, which falls under Chapter IV - a 100% EOU as provided u/s 10B(1) will be one that is approved by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by Section 14 of the Industries (Development and Regulation) Act, 1951 and the Rules made under that Act - approval was granted during May, 2005 only and therefore, prior to that date or the assessment year, relevant to the date of registration, the benefit of Section 10-B would not be available as the requirement of approval by the competent authority is not available as on the date, from which the assessee claimed exemption - Section 10B is very clear and unambiguous that approval by the competent authority is pre-requisite for grant of benefit u/s 10-B - it will not be appropriate for the Tribunal to hold that there is no pre-condition that the assessee should have obtain STPI registration before making the claim u/s 10-B. The Circular is nothing but clarification of what the Section 10B really provides for - It is of no avail either to the assessee or to the Department when the provisions of Section 10-B is clear – following the decision in C.I.T. Vs. Gopal plastics Ltd. [1994 (10) TMI 12 - MADRAS High Court] - the assessee in this case will be entitled to the benefit of Section 10-B only on complying with the conditions contained prescribed in Section 10-B of the Income Tax Act, and it does not enure to the benefit for the AY in question, namely, 2005-06. - Decided in favor of revenue.
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