TMI Blog2016 (4) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... h has been decided and the decision should not be altered without there being change in the facts requiring it to do so. Hence, we find no infirmity in the order of the Commissioner of Income Tax (Appeals), which is confirmed and the ground of appeal of the Revenue is dismissed. - Decided in favour of assessee Whether the assessee did not fulfill the conditions laid down in the provisions of sec. 10B(2)(i) & 10B(3) of the Act? - Held that:- Commissioner of Income Tax (Appeals) after considering the submissions of the assessee as well as remand report received from the Assessing Officer under sec. 250(4) of the Act wherein the Assessing Officer verified the date of receipts and opined that the sale proceeds of the computer software has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee declared total profit of ₹ 84,52,249/- on gross turnover of ₹ 5,02,75,500/- and assessee claimed deduction of ₹ 66,79,007/- under sec. 10B of the Act. The Assessing Officer observed that the assessee company did not fulfil the conditions laid down in the Act for claiming exemption under sec. 10B of the Act, as the assessee company failed to give generic names of three principal products done by it with item code number. He, therefore, disallowed deduction under sec. 10B of the Act amounting to ₹ 66,79,007/- and added to the total income of the assessee. 4. On appeal, Commissioner of Income Tax (Appeals) allowed the appeal of the assessee, and in doing so, he held as under:- 2.4. I have considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the appellant is 100% EOU and the profit has been earned on the same activities carried out by the appellant during the earlier assessment i.e. since its incorporation. Further, the reasons given by the A.O. for not allowing the deduction u/s.10B were already examined by the A.O. during the first assessment year in which the claim for deduction was claimed for the first time. Not only this, but the same were also considered in the subsequent assessment years. The A.O. has not brought any new material, on record to suggest that there is a change in the activity of the appellant company and therefore it did not full fill the conditions laid down for claiming deduction u/s. 10B of the Act. In view of above discussions and the issue inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax (Appeals) erred in deleting the disallowance of deduction under sec. 10B of the Act amounting to ₹ 40,18,276/- without appreciating the fact that the assessee did not fulfil the conditions laid down in the provisions of sec. 10B(2)(i) 10B(3) of the Act. 8. Brief facts of the case are that the Assessing Officer observed that the assessee failed to bring the sale proceeds of ₹ 49,90,065/- of computer software exported within the period of six months from the end of the previous year as prescribed in the provisions of sec. 10B(3) of the Act or within such further period as the competent authority may allow in this behalf. Since, the Assessing Officer had held that the assessee is not eligible for deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gard the assessee hereby submits that the time limit for the remittance of convertible foreign exchange of the Sale proceeds of computer software exported out of India has been extended to 12 months instead of 6 months by the Reserve Bank of India in the Foreign Trade Policy 2009-2014. In the paragraph no. 6.12 it has been clearly specified that the time limit has been extended to 12 months. Brief extract of the policy is hereunder: Other Entitlements 6.12 Other entitlements of EOUIEHTPISTPIBTP units are as under: (a) Exemption from Income Tax as per Section 1 0A and 10B of Income Tax Act. (b) Exemption from industrial licensing for manufacture of items reserved for SSI sector. (c) Export proceeds will b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As depicted in the above table, the convertible foreign exchange in respect of the 3 invoices has duly been received by the assessee within a period of 12 months from the end of the financial year. In view of the above, since the conditions laid down under Section 10B(3) in respect of ₹ 49,90,065/- has been duly fulfilled and the sum has been brought in convertible foreign exchange within the time stipulated by the Reserve Bank of India, such sum shall be allowed as deduction under Section 10B and oblige. 10. After considering the submissions of the assessee, Commissioner of Income Tax (Appeals) allowed the appeal of the assessee by observing as under:- 4.3 I have considered the submissions of the appellant, findings of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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