TMI Blog2020 (11) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... or to amendment by Income Tax (second Amendment) Act, 1998 with effect from 01.04.1999 granted tax holiday for a period of five years falling within a period of eight years beginning with the Assessment Year in which the manufacture / production of article or things has begun. Once an assessee began manufacture, it could choose the year from which it would start claiming deduction and from that year, it would be entitled for deduction for five consecutive years within a period of eight years. 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 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actually started claiming the relief under Section 10B of the Act. 2. Facts leading to filing of this appeal briefly stated are that the assessee is a public limited company, which is engaged in the manufacture and sale of radiation detectors and radiation measuring equipment. The assessee has been exporting its product exclusively to United States of America and France. The assessee has two export oriented units situated in Bangalore viz., Unit No.1 and Unit No.2. The assessee filed its revised return of income on 22.02.2010 declaring an income of ₹ 7,57,274/- after claiming deduction of ₹ 1,44,11,1999/- for Unit No.1 and ₹ 3,29,87,814/- for Unit No.2 under Section 10B of the Act. The return of income was taken up fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 set aside the order passed by the Commissioner of Income Tax (Appeals) and upheld the order of the Assessing Officer on the ground that the time limit for claiming the deduction under Section 10B of the Act has expired. In the aforesaid factual background, this appeal has been filed by the assessee. 4. Learned counsel for the assessee submitted that the tribunal erred in holding that the period of 10 consecutive Assessment Years has to be reckoned from Assessment Year, in which production or manufacture of an article or thing was commenced and the period for claiming the benefit of deduction under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 would be more than 10 years from the date of manufacture and in the decision rendered in the case of DSL Software Ltd. supra it has been held that the period of ten years commences from the date of manufacturing. It is also urged that period of ten years start from 1997-98 i.e., the first year of manufacture. 6. We have considered the submissions made by learned counsel for the parties and have perused the record. Section 10B of the Act prior to amendment by Income Tax (second Amendment) Act, 1998 with effect from 01.04.1999 granted tax holiday for a period of five years falling within a pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 998-99. 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 supra has held that ten year period would begin from the year in which assessee first claimed the deduction. In the aforesaid decision, the decision of this court in DSL Software Ltd. has also been considered. It is also pertinent to mention here that CYPRESS SEMI CONDUCTOR supra, this court has relied on DSL Software Ltd supra and the decision rendered in CYPRESS SEMI CONDUCTOR has been upheld by the Supreme Court as SLP preferred against the decision in the case of CYPRESS SEMI CONDUCTOR has been dismissed vide order dated 01.11.2017 passed in SLP (C) No.21341/2012. In vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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