TMI Blog2015 (11) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority. Deduction under section 10B - Held that:- xplanation 2(iv) to section 10B clearly says that approval by the Board appointed by the Government of India under section 14 of the Industries (Development and Regulation) Act, 1951 is an essential condition. In this case, though the assessee claims that the approval initially granted by the Development Commissioner, Special Economic Zone was ratified by the Board, it is not clear from the material available on record whether ratification was accorded by the Board constituted by the Government of India under section 14 of the Industries (Development and Regulation) Act, 1951. In the absence of any material to show that whether the approval was accorded by the Board constituted under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber) Joe Sebastian for the Appellant. T. Banusekar, Chartered Accountant, for the Respondent ORDER The order of the Bench was delivered by 1. N. R. S. Ganesan (Judicial Member).-Both the Revenue and the assessee, filed the appeals against the order passed by the Commissioner of Income-tax (Appeals)-VI, Chennai, dated August 29, 2014. Therefore, we heard both appeals together and disposing the same by this common order. 2. Let us first take the Revenue's appeal in I. T. A. No. 2816/Mds/2014. The only ground raised by the Revenue is with regard to exclusion of expenses from the export turnover and total turnover. 3. Sh. Joe Sebastian, the learned Departmental representative, submitted that the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee's appeal in I. T. A. No. 2770/Mds/2014, the first issue that arises for consideration is with regard to deduction under section 10B of the Income-tax Act, 1961 (in short the Act ). 7. Sh. T. Banusekar, the learned representative for the assessee, submitted that the assessee is 100 per cent. export oriented unit eligible for exemption under section 10B of the Act. The Assessing Officer disallowed the claim of the assessee on the ground that the Inter Ministerial Committee constituted by the Government of India under section 14 of the Industries (Development and Regulation) Act, 1951 does not approve the assessee. Referring to the order of the Development Commissioner, MEPZ Special Economic Zone, the learned representative sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Board appointed by the Government of India under section 14 of the Industries (Development and Regulation) Act, 1951. Therefore, the Board nominated by the Government of India under the provisions of section 14 of the Industries (Development and Regulation) Act, 1951 has to approve the unit for the purpose of claiming deduction under section 10B of the Act. In this case, it is nobody's case that the Board constituted by the Government of India has accorded, under Explanation 2(iv) to section 10B of the Act, approval to the assessee as 100 per cent. export oriented unit. In this case, the assessee was approved by the Development Commissioner of the Special Economic Zone. No material is available on the record to show that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Zone was ratified by the Board, it is not clear from the material available on record whether ratification was accorded by the Board constituted by the Government of India under section 14 of the Industries (Development and Regulation) Act, 1951. In the absence of any material to show that whether the approval was accorded by the Board constituted under the Industries (Development abd Regulation) Act, 1951, this Tribunal is of the considered opinion that the matter needs to be re-examined. Moreover, section 10A also gives exemption to 100 per cent. export oriented unit. Therefore, this Tribunal is of the considered opinion that the matter needs to be re-examined by the Assessing Officer in the light of the provisions of section 10A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40(a)(ia) of the Act. However, the Commissioner of Income-tax (Appeals) upheld the exclusion of foreign travel expenses, 50 per cent. of telephone charges and communication expenses, freight outward and commission expenses from the export turnover. The Commissioner also directed the Assessing Officer to exclude the same from the total turnover also. Referring to Explanation 2(iv) to section 10A of the Act, the learned representative submitted that the export turnover does not include freight, telecommunication charges or insurance attributable to the delivery of the articles, etc. These facts are not appreciated by the Commissioner as well as the Assessing Officer. According to the learned representative, the assessee has now filed copies o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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