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2017 (5) TMI 832 - AT - Income TaxDisallowance of claim of deduction u/s. 10A - profit earned by the assessee from its STP unit - Held that:- The Hon’ble Karnataka High Court in the case of Commissioner of Income Tax Vs. Expert Outsource (P.) Ltd. (2011 (3) TMI 1428 - Karnataka High Court) has held that where the assessee has began operation prior to date of registration with STPI but export of goods commenced after registration with STPI, the assessee was eligible for deduction u/s. 10A and the ratio of CBDT Circular No. 1/2005 equally applies to the provisions of section 10A of the Act. The documents on record show that the entire turnover of the undertaking is from export. The ld. AR of the assessee has stated at the Bar that the STP unit commenced its business activities after relocating its office at new premises in May, 2009. During the financial year 2009-10, except for export turnover there was no other generation of income from STP unit. For the applicability of the circular after assessment year 2009-10 is concerned, we find that proviso to sections 10A and 10B have been amended from time to time and the date of allowability of deduction has been extended. Finance (No. 2) Act, 2009 has made amendment with retrospective effect from 01-04-2009 by substituting the year 2011 with 2012. Although, corresponding amendment has not been made in the circular, however, in view of amendment made to the provisions of section 10A, the circular would apply to the assessment year under appeal, as well. - Decided in favour of assessee.
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