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2014 (11) TMI 1277 - HC - Income TaxDeduction u/s 10A - Claim denied by Revenue as production was commenced even before the registration of the SIPI and therefore, they are not entitled to deduction and the unit was acquired on 1.10.2001 and therefore it is a case for reconstruction and therefore, they are not entitled to deduction - Tribunal by looking into the material on record by a considered and reasoned order has categorically recorded a finding that Lara Networks did not have STPI network by the time the unit taken over by the assessee - HELD THAT:- The circular No.1 of 2005 dated 61.2005 by CPDT makes it clear that even if the existing undertaking receives STPI approval, it would still be entitled to deduction under Section 10 A and therefore, it was held that the business of STPI Unit-It was not set up by reconstruction or splitting up. Further it was held though registration was subsequent to the production, that is not a condition which is stipulated in Section 1CA for claiming the benefit of the said deduction and therefore, the assessee is entitled to the said benefit. In fact, these questions were the subject matter in the case of Commissioner of Income Tax and another - vs - Caritor (India Pvt. Ltd) [2015 (2) TMI 670 - KARNATAKA HIGH COURT] and also in the case of Commissioner of Income Tax and Another - vs - Expert Outsource P. Ltd. [2011 (3) TMI 1428 - KARNATAKA HIGH COURT] where, on interpreting the aforesaid provisions, it was held neither the customs bonding nor STPI registration before production is not a condition precedent. In that view of the matter, the substantial question of law are answered in favour of the assessee and against the Revenue. There is no merit in this appeal and it is accordingly dismissed. However, while giving effect to these orders, the Assessing Authority also shall give effect to the judgment of this court in the case of Commissioner of Income Tazz - vs - Tata Elsi Ltd & Ors. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] as said judgment is the subject matter of appeal before the Apex Court. However, in the event of the revenue succeeding before Apex Court, then consequential order in terms of Section 260(1)(14) of the Income Tax Act should be passed and given effect to.
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