TMI Blog2008 (7) TMI 979X X X X Extracts X X X X X X X X Extracts X X X X ..... ed exemption for the first time in the assessment year 2001-02, which is well within 10 years. Therefore, the unit of the assessee cannot be denied the said exemption on the ground that it is not the newly established undertaking in the assessment year in question. It is well-settled law that headings or titles prefixed to sections or group of sections can be referred to in construing an Act of the legislation, only when the enacting words are ambiguous, but when the language of the section is clear, then the heading cannot be used to give a different effect to clear words in the section. In our view, there is no ambiguity in section 10B of the Act, which provides exemption to certain newly established hundred per cent export-oriented ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igarh (hereinafter referred to as the Tribunal ) in ITA No. 319/Chd./2005 for the assessment year 2001-02, raising the following substantial question of law: Whether on the facts and in the circumstances of the case, the Tribunal is right in law in affirming the order of the CIT(A) in directing the Assessing Officer to allow deduction under section 10B of the Income-tax Act, 1961 in spite of the fact that the assessee company has not fulfilled the conditions laid down under section 10B of the Income-tax Act, 1961 as it was not a newly established undertaking ? 2. The brief facts of the case are that the assessee who is 100 per cent export-oriented undertaking, is engaged in the business of export of computer software. It started pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 3. Feeling aggrieved against the said order, the assessee filed appeal before the CIT(A), who vide his order dated 7-1-2005 allowed the claim of the assessee, while observing that the assessee satisfies all the conditions necessary for claiming exemption under section 10B of the Act. It was held that the claim under section 10B of the Act is available for a period of 10 years starting with the assessment year in which the unit starts to manufacture. Therefore, the assessee was entitled for the said benefit up to the year 2007-08. It was further held that it was optional for the assessee to either claim the exemption under section 10B or deduction under section 80HHE of the Act in relation to its export profits. Since in the year under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the undertaking begins to manufacture or produce articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee. The aforesaid provision provides that subject to the provisions of this section, a deduction of such profits and gains as are derived by a hundred per cent export-oriented undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee. Sub-section (2) provides that this section a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the legislation, only when the enacting words are ambiguous, but when the language of the section is clear, then the heading cannot be used to give a different effect to clear words in the section. In our view, there is no ambiguity in section 10B of the Act, which provides exemption to certain newly established hundred per cent export-oriented undertakings, on fulfilling certain conditions, for a period of ten consecutive assessment years. The initial year is the year in which the eligible undertaking begins to manufacture or produce articles or things or computer software, section 10B of the Act does not provide any restriction that in each of the years of claim, the export-oriented undertaking should be newly established. Indeed, re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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