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2018 (2) TMI 1993 - AT - Income TaxDeduction/exemption u/s 10B - Reopening of assessment - AO opined that for want of approval of the authority u/s 14 of the IDR Act and not that of the STPI authority, allowing deduction/exemption u/s 10B of the Act was bad and for such purpose he issued notice u/s 148 - claim of the allowability of deduction u/s 10A with respect to the STPI unit - HELD THAT:- In the reassessment proceeding for bringing to tax items which had escaped assessment, it would be open to an assessee to put forward claims for non taxability of the same. Since in this matter the amount sought to be brought under tax by reassessment proceedings is the same amount which the assessee claims non taxable u/s 10A of the Act, we hold that the assessee cannot be prevented from contending the amount which was originally allowed to be deductible u/s 10B is also deductible u/s 10A of the Act. There is no dispute that the agitation in this matter relates to the item sought to be taxed as escaped income. We, while respectfully following the decision in the case of Sun Engineering [1992 (9) TMI 1 - SUPREME COURT] hold that the assessee has to be permitted to agitate the ground which renders the escaped income as non-taxable. We held that it is open to the assessee to put forth claim for non taxability of the escaped income in view of Section 10A of the Act, while respectfully following the decision of Hon’ble jurisdictional High Court in Regency Creations Ltd. [2012 (9) TMI 627 - DELHI HIGH COURT] and Valiant Communications Ltd [2013 (1) TMI 1006 - DELHI HIGH COURT] we deem it just and proper to direct the learned AO to examine the claim of the assessee for deduction u/s 10A of the Act by affording an opportunity to the assessee. Appeal of the assessee is allowed for statistical purpose
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