TMI Blog2011 (9) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... see company filed return of income for the Assessment Year 2007-08 declaring income of ₹ 20,23,243/-. The case of the assessee was selected for scrutiny and notice under Section 143(2) of the Income Tax Act (hereinafter referred to as the Act‟) was issued and served upon the assessee. Assessment under Section 143(3) of the Act was completed by the Assessing Officer (AO). During the course of assessment proceedings, it was observed by the AO that the assessee had claimed exemption under Section 10B of the Act. During the course of scrutiny proceedings, the AO observed that certain necessary conditions which are required to be fulfilled for claiming exemption under the said Section are not fulfilled by the assessee company. After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO observing that the AO did not appreciate that the claim for deduction under Section 10B of the Act was made for the first time in the Assessment Year consequent upon the conversion of DTA to 100% EOU. Thus, it was neither formed by the splitting up or the reconstruction of a business already in existence and was not formed by the transfer to a new business profession used for any purpose. 4. Likewise, the CIT (A) was not convinced that the third reason given by the AO holding that the observations of the AO that the assessee was not maintaining books of accounts was based on a misappreciation of fact. The CIT (A) re-emphasized that the assessee operated as DTA unit till 31.7.2006. With effect from 01.8.2006, it started operating as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the assessee. Legal agreement dated 07.7.2006 for EOU Units was entered between the assessee company and the President of India acting through the Development Commissioner. The aforesaid legal agreement was accepted by the Development Commissioner, Noida, SEA and approval under 100% EOU was granted to the assessee respondent on 11.7.2006. 8. Thereafter, the assessee was issued Green Card No.120 on 11.7.2006 by the Development Commissioner, Noida SEZ. Licence for the Private Bonded Warehouse under Section 58 of the Customs Act, was also granted to the assessee on 31.7.2006. 9. Learned counsel for the assessee is right in his submission that the power to grant approvals to 100% EOUs initially vested with the Board specifically c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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