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2016 (6) TMI 695 - AT - Income TaxAllowance of exemption u/s 10B denied - assessee has not received the ratification by the Board of Approval as per section 14 of the Industries Development and Regulation Act - Held that:- DR is relying upon the CBDT instructions requiring the approval to be ratified by the Board of Approval, while the learned Counsel for the assessee is relying upon the letters of clarifications issued by the Director of STPI. We find that this Tribunal in the case of ACIT vs. Smt. K. Sudha Rani [2010 (9) TMI 1093 - ITAT HYDERABAD] has held that once the STPI has approved a unit as 100% EO Undertaking, it should be allowed deduction u/s 10B subject to the other conditions as specified in that section. The Tribunal also followed the decision of the Hon'ble Supreme Court in the case of Bajaj Tempo Ltd vs. CIT (1992 (4) TMI 4 - SUPREME Court) to hold that section 10B being a special incentive provision should be considered liberally. This decision of the Tribunal in the case of Smt. Sudha Rani has been confirmed by the Hon'ble High Court of Andhra Pradesh [2013 (6) TMI 783 - ANDHRA PRADESH HIGH COURT] Since the Tribunal and the Hon'ble High Court have taken cognisance of the relevant provision of law as well as the CBDT instructions and also letters of the STPI, we are of the opinion that the said decision is biding on us. Further, we also find the A.Y 2007-08 is the first year of claim of exemption u/s 10B and the AO was required to verify the assessee’s eligibility in the said year. The AO allowed the exemption u/s 10B during the assessment proceedings u/s 143(3) for both A.Ys 2007-08 and 2008-09 and Revenue has also accepted the CIT (A) finding for 2009-10 and 2010-11. Thus, even as per the principle of uniformity and consistency, the AO cannot take a different stand in the 6th year of the claim. In view of the same, we do not see any reason to interfere with the order of the CIT (A) in allowing the claim - Decided against revenue
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