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2015 (5) TMI 230 - GUJARAT HIGH COURT

2015 (5) TMI 230 - GUJARAT HIGH COURT - [2015] 375 ITR 595 (Guj) - Disallowance of deduction under Section 10B - CIT(A) deleting the disallowance admitting additional evidence in the form of approval granted by the Board of Approval (BOA) to the alleged export oriented Unit - Held that:- The moment the decision / approval 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 .....

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le 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 Commissioner granted the approval, both the learned CIT(A) as well as the learned Tribunal ha .....

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URABLE MR.JUSTICE M.R. SHAH) [1.0] Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Income Tax Appellate Tribunal C Bench, Ahmedabad (hereinafter referred to as the Tribunal ) dated 30/09/2014 in ITA No.1581/Ahd/2011 for the Assessment Year 2007-08 by which the learned Tribunal has dismissed the said appeal preferred by the revenue and has confirmed the order passed by the learned CIT(A) deleting the disallowance of exemption claimed under Section 10B .....

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t 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 sho .....

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the approval granted by the Development Commissioner, Kandla Special Economic Zone. The Assessing Officer was not satisfied with the same and on interpretation of the Circular / instruction issued by the CBDT dated 09/03/2009 the Assessing Officer disallowed the deduction under Section 10B of the Act on the ground that if the approval granted by the Development Commissioner is ratified by the Board of Approval, the assessee shall be entitled to deduction under Section 10B of the Act and the Boa .....

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learned Tribunal, by the impugned judgment and order, the learned Tribunal has dismissed the said appeal confirming the order 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 be .....

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sion of the Development Commissioner was ratified by the Board of Approval subsequently and, therefore, it can be said that on the basis of the permission granted by the Development Commissioner alone, at the relevant time, the assessee was not entitled to deduction under Section 10B of the Act as claimed. It is therefore submitted that the learned Tribunal has materially erred in not properly appreciating and / or interpreting the Circular / Instruction of the CBDT dated 09/03/2009. Making the .....

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truction of the Export Promotion Council for Eous & SEZS dated 14/05/2009 that from 1990 onwards Board of Approval has delegated the power of approval of 100% EOU to the Development Commissioner, it is submitted that therefore at the relevant time when the Development Commissioner granted the permission / approval of 100% EOU, the Development Commissioner exercised the delegated power. It is submitted that therefore the approval granted by the Development Commissioner was not required to be .....

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also the learned CIT(A) as well as the learned Tribunal have rightly held that on the basis of the approval granted by the Development Commissioner, which was subsequently ratified by the Board of Approval, the assessee was entitled to deduction under Section 10B of the Act as claimed. Making the above submissions, it is requested to dismiss the present Tax Appeal. [5.0] Heard the learned advocates appearing on behalf of the respective parties at length. At the outset, it is required that the as .....

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the deduction under Section 10B of the Act. However, it is required to be noted and it is not in dispute that vide Circular / instruction of the CBDT dated 09/03/2009 it was clarified that the approval granted by the Development Commissioner in the case of Export Oriented Unit set up in an Export Processing Zone will be considered valid, once such an approval is ratified by the Board of Approval for EOU Scheme. In the present case, it is not in dispute that the permission / approval granted by t .....

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