TMI Blog2017 (12) TMI 1575X X X X Extracts X X X X X X X X Extracts X X X X ..... of Sub-section (8) as claimed by the assessee, he has made declaration prior to filing of return letter in 2013 and mentioning in return will not help the assessee. In our considered opinion, declaration is not there and so called declaration in the return is not permissible because Section 8 envisaged that declaration is to be made prior to filing of the return which has not been done, therefore, in that view of the matter, the issue is answered in favour of the department and against the assessee. - D.B. Income Tax Appeal No. 32/2017 - - - Dated:- 13-12-2017 - Mr. K.S. Jhaveri And Mr. Vijay Kumar Vyas JJ. For the Appellant(s) : Mr. Anuroop Singhi with Mr. Aditya Vijay For the Respondent(s) : Mr. Mahendra Gargieya with Mr. Lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ains as are derived by a hundred per cent exportoriented 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 : (8) Notwithstanding anything contained in the foregoing provisions of this section, where the assessee, before the due date for furnishing the return of income under sub-section (1) of section 139, furnishes to the Assessing Officer a declaration in writing that the provisions of this section may not be made applicable to him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used. Once it is shown that the case of the assessee comes within the letter of the law, he must be taxed, however great the hardship may appear to the judicial mind to be. 5. However, counsel for the respondent Mr. Gargieya has supported the order of the Tribunal and contended that the assessee was rightly granted the benefit in view of the decision of Madras High Court in CIT vs. Tamil Nadu Jai Bharath Mills Ltd. reported in (2006) 287 ITR 512 wherein it has been held as under:- 5. Section 10B(8) which opens with non obstante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction is not regarded as beginning to manufacture or to produce articles because of the reason that the assessee has to produce trial production to verify whether it can be used ultimately in the manufacture of the final article. These are, therefore, trial runs . The article is tested to find out as to whether it can be launched as a final product in the market or not. Therefore, with mere trial production, the manufacture for the purpose of marketing the goods has not started which starts only with commercial production namely when final product to the satisfaction of the manufacturer has been brought into existence and is now fit for marketing. 5.2 He also relied upon the decision of Supreme Court in CIT vs. G.R. Govindaraj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the return. According to us, if the option is exercised when the return is filed, that would be treated as in conformity and comply with the provisions contained in Section 11 of the Act. 5.3 He also relied on the Circular No.1/2016 [F.No.200/31/2015- ITA-I] dt. 15.2.2006 which reads as under:- Section 80IA of the Income-tax Act, 1961 ('Act'), as substituted by the Finance Act, 1999 with effect from 01.04.2000, provides for deduction of an amount equal to 100% of the profits and gains derived by an undertaking or enterprise from an eligible business (as referred to in sub-section (4) of that section) in accordance with the prescribed provisions. Sub-section (2) of section 80IA further provides that the aforesaid deduction can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided under sub-section (2) which allows a choice to the assessee for deciding the year from which it desires to claim deduction out of the applicable slab of fifteen (or twenty) years. The matter has been examined by the Board. It is abundantly clear from subsection (2) that assessee who is eligible to claim deduction u/s 80IA has the option to choose the initial/first year from which it may desire the claim of deduction for ten consecutive years, out of a slab of fifteen (or twenty) years, as prescribed under that subsection. It is hereby clarified that once such initial assessment year has been opted for by the assessee, he shall be entitled to claim deduction u/s 80IA for ten consecutive years beginning from the year in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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