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TMI Blog2020 (11) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... eal pertains to the Assessment year 2008-09. The appeal was admitted by a bench of this Court vide order dated 06.12.2017 on the following substantial question of law: Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the Appellant's Unit 1 was not entitled to deduction under Section 10B for the assessment year 2008-09, on the basis that the ten consecutive assessment years for the purposes of the said provision would begin from the assessment year 1997-98, when the Appellant commenced manufacture, and not from the assessment year 1999-00 when the Appellant actually started claiming the relief under Section 10B of the Act. 2. Facts leading to filing of this appeal briefly stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r alia held that necessary declaration about opting out of Section 10B for the Assessment Year 1998-99 had been filed for unit No.1 and therefore, upheld the claim of the assessee and held that the assessee was entitled to benefit of deduction under Section 10B of the Act for a period of ten Assessment Years from 1999-00 onwards. The appeal preferred by the assessee was allowed. The revenue approached the Income Tax Appellate Tribunal (hereinafter referred to as 'the tribunal' for short) by filing an appeal. The tribunal vide order dated 11.05.2016 inter alia held that activity of the assessee amounts to manufacture, however, with regard to claim of the assessee for deduction under Section 10B of the Act to unit No.1, the tribunal s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce has been placed on the decisions in 'COMMISSIONER OF INCOME-TAX VS. DSL SOFTWARE LTD.', (2012) 18 TAXMANN.COM 151 (KARANTAKA) and 'THE COMMISSIONER OF INCOME TAX AND ANOTHER VS. M/S CYPRESS SEMI CONDUCTOR', ITA NO.1016/2018 AND CONNECTED MATTERS DECIDED ON 07.11.2014. 5. On the other hand, learned counsel for the assessee submitted that the period of eight years commences from the date of manufacture and the assessee has opted 5 years out of 8 years. It is also urged that amendment to Section 10B for years is from the date of manufacture and not from first year of claim of five years out of eight years as per amended provisions. It is also contended that if the contention of the assessee is accepted, period of ten years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iday was extended for a period of ten years. The amended Section 10B(3) reads as under: 10B(3) The profits and gains referred to in sub-Section (1) shall not be included in the total income of the assessee in respect of any 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. 7. The assessee started manufacture in the Assessment Year 1997-98 but did not claim deduction under Section 10B of the Act, for that year as well as subsequent Assessment Year viz., 1998-99. For the first time, the claim for deduction under Section 10B of the Act was made for the Assessment Year 1999-2000. This court in CYPRESS SEMI CONDUCTOR ..... X X X X Extracts X X X X X X X X Extracts X X X X
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