TMI Blog2017 (12) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no manufacture at the time of certification, from the time of commencement of manufacture. The benefit conferred is for the activity of export and if it is not related to the time from commencement of manufacture then a registered export-oriented unit, if for any reason commences manufacture later, then it could lead to the benefit being reduced since the income derived will only be on manufacture and for the period in which there is no business, it would be illusory. As has been found in Annexure-D judgment, there is no requirement that the export-oriented unit be newly established. The benefits have to be, hence, applied from the date of commencement of the export-oriented undertaking, which in the present case coincides with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it being a 100% exportoriented unit in the year 2000-2001, specifically on 24.9.1999. Whether the assessee would be entitled to claim exemption under Section 10B from assessment year 2000-2001, the previous year being its year of inception as a 100% export-oriented undertaking or whether it has to be from the 1997-1998, the year on which the manufacture was commenced. 3. The learned Senior Counsel, Department of Taxes, Government of India relied on Annexure-D, a judgment of the Punjab and Haryana High Court, and the decision in Sami Labs Ltd. v. Assistant Commissioner of Income-Tax ([2011] 334 ITR 157). The learned counsel appearing for the respondent-assessee relied on the decision in Commissioner of Income Tax v. Shri Renuga Textiles M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Tribunal granting exemption under Section 10B to a unit which commenced operation in an earlier year but got recognition as a 100% exported oriented unit in a subsequent year. The appeal of the revenue was dismissed since no question of law arose; which again can have no persuasive effect on us to decide the question raised here. Shri Renuga Textiles's case was also in circumstances of a subsidiary company, which was a 100% export-oriented unit, merging with the holding company. The claim under Section 10B was raised only for the unit of the amalgamated company, which was declined by the Department alleging a transfer of plant and machinery. The Court held that amalgamation of a subsidiary company will not result in transfer of pl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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