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2017 (10) TMI 424 - AT - Income TaxAllowability of claim of deduction under s.10A - claim not made in Return of income - assessee in its return of income had claimed deduction under s.10B and not 10A - powers vested with Board recognized to be delegated to the Development Commissioner concerned for granting approvals to 100% EOUs for the purposes of s.10B - reopening of assessment - Held that:- We find force in the argument of the assessee that any delay in ratification of the action of the Development Commissioner as per prescribed procedure by the Board appointed under s.14 of Industries (Development and Regulation) Act 1951, will not mar the claim of deduction by the assessee altogether. Once, the pe mission granted by the office of Development Commissioner stands ratified, the ratification would relate back to the date of permission. It is not the case of the AO that other terms and conditions for availing exemption under s.10B of the Act has not been complied with. In the instant case, it appears from the communication letter dated 14/03/2013 that letter of permission dated 25/05/2007 issued in favour of the assessee for registration as 100% EOU under STPI Scheme was stated to be ratified in the first meeting of Inter-Ministerial Standing Committee (IMSC) on 2-6-2008 constituted by Central Government for such purposes. As noted, the ratification subsequently carried out and communicated will operate from the date of letter of permission issued by the Development Commissioner. Therefore, in our considered view, the action of the AO and CIT(A) in denying the claim of deduction under s.10B of the Act requires to be set aside as unsustainable in law. Also, in view of the merits in the claim of deduction under s.10B, we do not consider it necessary to deal with the challenge of the assessee on allegedly wrong assumption of jurisdiction by invoking the section 147 of the Act. Thus, the assessee, in our considered opinion, is rightly eligible for claim of deduction under s.10B of the Act in the facts and circumstances of the case. - Decided against revenue
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