TMI Blog2015 (2) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act. To be eligible for exemption under section 10A, the conditions stipulated in sub-section (2)(i) of section 10A has to be fulfilled, i.e., the assessee has to begin manufacturing the products on or after the first day of April, 1994, in any electronic hardware technology park. In order to start the unit in software technology park, the permission is required. Once permission is obtained and the unit is started in software technology park, after the aforesaid date, the assessee is entitled to the benefit under section 10A of the Act. Customs bonding is not a requirement or a condition precedent for granting exemption under section 10A. As is clear from the facts set out above, both the appellate authorities were justified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch fulfils all the following condition, namely :- (i) it has begun or begins to manufacture or produce articles or things or computer software during the previous year relevant to the assessment year,- (a) commencing on or after the 1st day of April, 1981, in any free trade zone ; or (b) commencing on or after the 1st day April, 1994, in any elec tronic hardware technology park, or, as the case may be, software technology park. While granting permission for setting up of the units, the STPI authorities have put some conditions. Condition No. 5 is the units should be customs bonded. The other condition mentioned in the annexure to the permission letter of the STPI authorities is the production of the undertaking under the scheme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit to have a prior customs approval to commence any software development export. The commercial production can be commenced before bonding. Customs bonding is required only if the assessee intends to avail of duty conces sions, i.e., customs duty/excise duty. For the purpose of section 10A what is to be seen is whether the conditions stipulated by the EXIM Policy/STPI authorities have been fulfilled or not in addition to the conditions stipu lated in section 10A. Once the STPI registration is obtained, the condition stipulated under section 10A are fulfilled. Merely because the production was commenced before the actual customs bonding took place the assessee cannot be denied the benefit of exemption. Aggrieved by the said order, the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal's order, which is extracted as hereunder : Sl. No. Unit and address STPI Approval No. and date Customs Approval No. and date Date of commencement of production as per Form No. 56F Income claimed under section 10A as exempt (Rs.) 1. Caritor India Pvt. Ltd., 17, 17/1,Southend Road, Basavanagudi, Bangalore. 95/2334 11-11-1995 40/3/96/ EOU/III 7-2-1996 11-11-1995 47,674,230 2. 100, Bull Temple Rd., Bangalore. 98060901/ 1400 9-6-1998 Nil 11-6-1998 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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