9911796707
TMI Blog2017 (9) TMI 1752X X X X Extracts X X X X X X X X Extracts X X X X ..... The petitioner is a partnership firm and is engaged in export of Back Office Operation and computer software. The petitioner had filed the return of income on 30.10.2007 declaring a total income of Rs. 98,360/-. In the return, the petitioner had claimed deduction under section 10B of the Income Tax Act ("the Act" for short). Return was taken in scrutiny by the Assessing Officer. During such scrutiny assessment, he had raised several questions with respect to the petitioner's claim of deduction under section 10B of the Act, in respect to which the petitioner had replied under an undated communication (Annexure-B) as under: "2. Documents relevant with the STPI and Cochin SEZ, Kakkanad, Cochin 1. Complete copy of certificate issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent the remission was not made on the export transaction within six months from the end of financial year. This can be gathered from the order of assessment, relevant portion of which reads as under : "8. Deduction Allowable u/s 10B The assessee has claimed deduction u/s 10B of the Income Tax Act @ 100% of profit on its export turn over. During the assessment proceeding it is noticed that the realized of the some export transaction, having amount of Rs. 2,45,418/have not received with in the six month from the end of the financial year. Accordingly, the revised working of the allowable deduction is as under : Profit = Export turnover claimed as reduced later Realization by more than six months(i.e. After September) Total turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 10B of the Act for an amount of Rs. 5,12,42,970/as a newly established hundred per cent export oriented undertaking. Clause(iv) of Explanation 2 for the purpose of section 10B of the Act states as to hundred per cent export oriented undertaking as under : - (iv) 'hundred per cent exportoriented undertaking' means an undertaking which has been approved as a hundred per cent exportoriented undertaking by the Board appointed in this behalf by the Central Government in exercise of powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951) and the rules made under that Act." 3. The undertaking of the assessee has not been approved as a hundred per cent export oriented undertaking by the Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... njoy the approval by the Board appointed by the Central Government under the Industries (Development and Regulation) Act, 1961. 6. The petitioner challenged the order of assessment before the Commissioner in a revision petition filed under section 264 of the Act. The Revision petition came to be dismissed by the Commissioner by the impugned order dated 9.3.2017. Before the Commissioner also, the assessee had argued that reopening of the assessment itself was bad in law. This was in addition to the assessee's contention that even otherwise deduction under section 10B of the Act could not have been disallowed. 7. Learned counsel for the petitioner raised the following contentions. The notice for reopening was issued beyond a period of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mere change of opinion. Counsel submitted that deduction under section 10B of the Act is available for successive ten years from the commencement of the activity. Assessment year 20072008 was not the first year of commencement. The assessee had raised such claim continuously from inception from the year 2003 onwards. All such claims were granted without disturbing the initial order of assessment. It was not open for the Assessing Officer to disturb the claim in the later year. 8. On the other hand, learned counsel Shri Nitin Mehta for the department opposed the petition contending that the assessee did not disclose during the original assessment proceedings that he did not enjoy approval of the Board appointed by the Government of India. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hnology Parks Scheme. The assessee also supported the claim on merits pointing out that the Development Commissioner had granted certificate of commencement and that foreign exchange remittances were made within six months from the end of the financial year. After such scrutiny, the Assessing Officer passed the original order of assessment in which he did not reject the claim of deduction under section 10B of the Act. In fact, he accepted the claim substantially making minor disallowance to the extent the assessee had not received foreign exchange payment within the prescribed period. 11. It can thus be seen that the assessee's claim of deduction under section 10B of the Act was examined minutely by the Assessing Officer. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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