TMI Blog2015 (5) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... e noted that in the subsequent circular No.68 issued by the Export Promotion Council for Eous & SEZS dated 14/05/2009 it mentions that from 1990 onwards Board of Approval had delegated the power of approval of 100% to the Development Commissioner and, therefore, it can be very well argued and said that the Development Commissioner while granting the approval of 100% EOU exercises delegated powers. In any case and apart from the above when it is found that at the relevant time the Development Commissioner granted the approval of 100% EOU in favour of the assessee-Company, which came to be subsequently ratified by the Board of Approval and as observed hereinabove as such the ratification shall be from the date on which the Development Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by admitting additional evidence in the form of approval granted by the Board of Approval (BOA) to the alleged export oriented Unit? (B) Whether the appellate Tribunal is right in law and on the facts in confirming the order of CIT(A) accepting the approval of Board of Approval with retrospective effect despite the fact that the approval of the BOA was granted after 3 years of filing return of income by the assessee and after completion of assessment? [2.0] The facts leading to the present Tax Appeal in a nutshell are as under; [2.1] The assesssee filed the return of income for the Assessment Year 2007-08 showing the total income as ₹ 54,12,637/-. The assessee claimed deduction under Section 10B of the Act amounting to ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r passed by the learned CIT(A) deleting the disallowance of deduction claimed under Section 10B of the Act. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Tribunal, the revenue has preferred the present Tax Appeal with the aforesaid proposed substantial questions of law. [3.0] Shri Sudhir Mehta, learned advocate appearing on behalf of the revenue has vehemently submitted that the learned Tribunal has materially erred in relying upon the instruction / circular issued by the CBDT dated 09/03/2009. It is submitted that by the circular / instruction dated 09/03/2009 it was clarified that now the permission granted by the Development Commissioner approved by the Board of Approval can be consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delegated power. It is submitted that therefore the approval granted by the Development Commissioner was not required to be ratified as the Development Commissioner exercised the delegated powers. It is submitted that in any case, in the present case the Board of Approval did ratify the decision of the Development Commissioner. It is submitted that therefore when the Board of Approval ratified the decision of the Development Commissioner granting the approval of 100% EOU to the assessee, the Board of Approval ratified the decision of the Development Commissioner ab initio. It is submitted that therefore in that case also the learned CIT(A) as well as the learned Tribunal have rightly held that on the basis of the approval granted by the De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roval of the Development Commissioner is ratified by the Board of Approval it will relate back to the date on which the approval was granted by the Development Commissioner. If that be so, it cannot be said that the assessee was not a Export Oriented Unit, which was entitled to the deduction under Section 10B of the Act. Incidentally it is to be noted that in the subsequent circular No.68 issued by the Export Promotion Council for Eous SEZS dated 14/05/2009 it mentions that from 1990 onwards Board of Approval had delegated the power of approval of 100% to the Development Commissioner and, therefore, it can be very well argued and said that the Development Commissioner while granting the approval of 100% EOU exercises delegated powers. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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