TMI Blog2018 (1) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... isdictional High Court of Gujarat in the case of PCIT vs. ECI Technologies Pvt. Ltd. [2015 (5) TMI 230 - GUJARAT HIGH COURT] wherein held 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 have rightly held that the assessee was entitled to deduction under Section10B of the Act as claimed - Decided in favour of assessee. - ITA No.2734/Ahd/2015 And ITA No.2735/Ahd/2015 - - - Dated:- 18-12-2017 - SHRI RAJP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 735/Ahd/2015 . With this appeal, the assessee has challenged correctness of the order of CIT(A)-1, Vadodara dated 27.07.2015 pertaining to assessment year 2008-09. The only grievance of the assessee is that the CIT(A) erred in confirming action of the Assessing Officer in disallowing exemption of ₹ 32,56,998/- claimed under section 10B of the Act. 7. The assessee is in the business of software development and testing and accordingly assessee claimed deduction of ₹ 32,56,998/- under section 10B of the Act. The Assessing Officer was of the opinion that to claim deduction under section 10B of the Act, as per explanation 2(iv) to section 10B, the deduction is admissible to 100% EOU if the approval is granted by the Board of appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board vide letter dated 13.08.2007 and the same is exhibited at pages 18 to 20 of the Paper Book. We also find that the CBDT has come out with the following circular:- CLARIFIFATION REGARDING DEDUCTION UNDER SECTION 10B [ Instruction No.02/2009, Dated 9-3-2009, Corrected by [f. no.178/19/2008 ITA-I] dated 8-5-2009] Section 10B of the Income Tax Act provides for exemption of income in case of hundred per cent export oriented undertakings subject to prescribed conditions. Explanation 2(iv) below to the said section defines a hundred percent export oriented undertaking as an undertaking so approved by the Board appointed in this behalf by the Central Government under section 14 of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner by the Board of Approval, the Assessing Officer denied the deduction under section 10B of the Act. However, is required to be noted and it is not in dispute that, vide Circular/instruction of the Central Board of Direct Taxes dated March 9, 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 Export Oriented Unit Scheme. In the present case, it is not in dispute that the permission/approval granted by the Development Commissioner has been ratified by the Board of Approval, may be subsequently. The moment the decision/approval of the Development Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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