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2015 (2) TMI 670 - HC - Income TaxEntitlement to claim deduction under section 10A - assessee failing to satisfy the conditions stipulated in the STPI Scheme which stipulated commencement of units from a particular date when the assessee's unit had already commenced much before obtaining the licence for the bonded warehouse - Held that:- The conditions stipulated in the permission granted by the STPI is the units shall be customs bonded. The benefit of such customs bonding is that the assessee would be entitled to the benefit of customs duty and excise duty. It has nothing to do with the grant of exemption under section 10A of the Income-tax Act. To be eligible for exemption under section 10A, the conditions stipulated in sub-section (2)(i) of section 10A has to be fulfilled, i.e., the assessee has to begin manufacturing the products on or after the first day of April, 1994, in any electronic hardware technology park. In order to start the unit in software technology park, the permission is required. Once permission is obtained and the unit is started in software technology park, after the aforesaid date, the assessee is entitled to the benefit under section 10A of the Act. Customs bonding is not a requirement or a condition precedent for granting exemption under section 10A. As is clear from the facts set out above, both the appellate authorities were justified in granting relief to the assessee. Therefore, we do not see any merit in this appeal. - Decided in favour of the assessee
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