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2015 (4) TMI 638 - HC - Income TaxEntitled to the benefit under Section 10-B - department submits that most of the activities are "outsourced" and very small part of the manufacture was undertaken by the assessee - Held that:- The assessee is a manufacturer of the 'Ballistic Helmets' and 'Bullet Proof (bullet resistant) Jackets'. Only a part of the manufacturing activities was got done by the assessee from outside agency and that to under the direct control and supervision of the managerial and technical staff available with the assessee. Therefore, even on the basis of such an outsourcing the assessee has to be held to be the 'manufacturer' of the products for which it had been approved as 100% EOU. Accordingly it cannot be denied the benefit of exemption under section 10B of the Act. In the instant case, a new product has come out at final stage. It is not the case of changing the label or the cover of the product. When totally new product came into existence after the entire process then we are of the view that the assessee is entitled to the benefit of Section 10B of the Act. We set aside the impugned order passed by the Tribunal and restore the order passed by the first appellate authority pertaining to the benefit of exemption under Section 10B of the Income Act. In the case of CIT vs. Heartland Delhi Transcription Services Pvt. Ltd. reported in (2014 (7) TMI 810 - DELHI HIGH COURT) the Hon'ble Delhi High Court has ruled that after removal of sub sections (9) and (9A) from the statute book w.e.f. 1.4.2004 and simultaneous insertion of sub-section (7A) w.e.f. the same date, benefit under section 10B is applicable even where the ownership of the industrial undertaking, in continuity. In arriving at the said conclusion the Hon'ble Delhi Court has referred to and relied upon various case laws as has been referred to in the preceding paragraphs and finally held that sub section (7A) is an 'enabling provision', meant for "continuity" of benefit under section 10 B, even after change in ownership of the 'industrial undertaking'. - Decided in favour of the assessee
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