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2018 (4) TMI 982 - AT - Income TaxGranting deduction u/s 10B - scope of manufacturing activities - Held that:- The assessee was given deduction u/s 10B of the Act by the revenue commencing from Asst Years 2003-04 to 2010-11. In fact based on the assessment framed for the Asst Year 2011-12, the assessments for the earlier years were reopened wherever possible, based on the same reasoning given in Asst Year 2011-12, and in the re-assessments completed, the ld AO had granted deduction u/s 10B of the Act to the assessee. Hence we hold that the very basis on which the ld AO had held that assessee is not a manufacturer and consequentially not eligible for deduction u/s 10B of the Act stands nullified by his own re-assessment orders passed for the Asst Years 2007-08, 2008-09 and 2010-11. For the Asst Year 2009-10, though the AO again took a different stand and denied the benefit of deduction u/s 10B of the Act to the assessee, the same was duly granted to the assessee by the ld CITA vide his order dated 24.6.2016. The ld AR stated that this order of ld CITA has been accepted by the revenue by not preferring further appeal to this tribunal. Hence the very basis or foundation on which the ld AO denied the benefit of deduction u/s 10B of the Act stood nullified by his own orders or the order of his higher authority. These facts were not controverted by the revenue before us. The facts for the year under appeal are not different from the earlier years wherein relief was granted to the assessee. Assessee is indeed entitled for deduction u/s 10B of the Act for the Asst Year 2011-12 also and the same has been rightly granted by the ld CITA and accordingly we do not deem it fit to interfere with the order of the ld CITA. Accordingly, the grounds raised by the revenue are dismissed.
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