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TMI Blog2013 (1) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... b appearing on behalf of the Revenue submitted that the assessee company had started manufacturing process in May, 1993. The assessee claimed deduction under section 10B of the Act as was applicable then. As per the provisions of section 10B relevant to the assessment year 1994-95 the assessee was eligible for deduction for five consecutive assessment years falling within a period of eight years beginning with assessment year relevant to previous year in which the undertaking had commenced production. The assessee opted to claim deduction under section 10B from the assessment year 1995-96 to 1999-2000. As per the amended provisions of section 10B of the Income Tax (Second Amendment) Act, 1998, the tax holiday period under section 10B was ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es or things, specified by the assessee at his option: Provided that nothing in this sub-section shall be construed to extend the aforesaid five assessment years to cover any period after the expiry of the said period of eight years." 4. The provisions of section 10B were amended by the Income Tax (Second Amendment) Act,1998 with effect from 1.4.1999. The relevant extract of the amended provisions of section 10B are reproduced herein below:- "10B(1) Subject to the provisions of this section, any profits and gains derived by an assessee from a hundred per cent export-oriented undertaking (hereinafter in this section referred to as the undertaking) to which this section applies shall not be included in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndertaking shall be entitled to the deduction referred to in this sub-section only for the unexpired period of aforesaid ten consecutive assessment years:" 6. A perusal of sub-section (3) of section 10B prior to the amendment of Income Tax (Second Amendment) Act, 1998 shows that the assessee could have availed the benefit of section 10B in any of the five consecutive assessment years falling within a period of eight years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things. It is an admitted fact that the assessee started manufacturing in May, 1993. The assessee was eligible for claiming deduction under section 10B for the period of 10 years beginning ..... X X X X Extracts X X X X X X X X Extracts X X X X
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