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2014 (6) TMI 991 - AT - Income TaxIssue of claim of deduction under section 10B - profits on sale of incentives received under the scheme Vishesh Krishi Upaj Yojna @ 5% of FOB value of exports, received from Ministry of Commerce, Govt. of India - Held that:- CBDT has issued the circular No. 8 of 2002 dated 27.08.2002 which clarifies that the restriction in deduction under section 10A and 10B to 90% of the profits and gains of the enterprises was for only one assessment year i.e. 2003-04. The assessee is in appeal before us relating to assessment years 2006-07 and 2009-10. Hence, the assessee is entitled to the claim of deduction @ 100% of the profits and gains of the enterprises. We find that a mistake has occurred in the order of the Tribunal. In view thereof, we modify the findings of the Tribunal in para 62 and hold that the assessee is entitled to deduction @ 100% of the profits of the EOU unit. We allow the Miscellaneous Application moved by the assessee relating to assessment years 2006-07 and 2009-10 on the issue of claim of deduction under section 10B of the Act to be allowed at 100% of the profits of EOU unit. The remaining order passed by the Tribunal shall remain unchanged.
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