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TMI Blog2022 (4) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... was framed by the Asst. Commissioner of Income Tax (OSD), Corporate Ward-4(2), Chennai, for the AYs 2010-11 & 2011-12, u/s.143(3) r.w.s.147 of the Income Tax Act, 1961 (hereinafter "the Act") vide his orders dated 28.12.2017 & 26.12.2016 respectively. 2. The only common issue in these two appeals of Revenue are as regards to the order of the Ld.CIT(A) allowing the claim of deduction u/s.10A & 10B of the Act. For this, in both the orders the Revenue has raised identical worded grounds and the facts are exactly identical. Hence, we take the AY 2010-11 in ITA No.2832/Chny/2019 and decide the issue. The relevant grounds raised by the Revenue are as under: 2. The Ld. CIT(A) erred in holding that the assessee company is eligible to claim deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Para No.5, as under: 5. The submission of the assessee is examined. The specific wording in section 10B requires the assessee to obtain approval of the EOU/EPZ scheme as well as from a board constituted by the Government for this purpose. The assessee company has obtained certificate under EOU scheme for being eligible to claim deduction u/s 10B as well as under STPI scheme for claiming deduction u/s 10A of the IT Act. The CBDT has also clarified vide its instruction dt.09.03.2019 that once an assessee obtains approval under EOU scheme, the same can be ratified by the board of approval subsequently. The Government of India, through export promotion council for EOUs and SEZs, had clarified that the Development Commissioners of EOUs /SEZ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of Approval for Export Oriented Unit Scheme. Hence, according to him, the primary condition is not fulfilled. Apart from that the ld.Sr.DR stated that the other conditions as mentioned in approval granted by Software Technology Park of India vide reference No.STPIC/G/324/2005-06/478 dated 08.06.2005 that as regards to export jobs, the benefits will be granted after entering into a formal export contract with the clients as well as with STPI, Chennai. The conditions mentioned in this letter was referred to by ld.Sr.Dr, which reads as under: You will be entitled to get the benefits under the STP Scheme, only after entering into the legal agreement with STPI-Chennai. You are expected to do export jobs only after entering into an formal exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toms etc. v. Indian Oil Corporatation Ltd. & Anr. Reported in [2004] 267 ITR 0272 (SC) and also in the case of UCO Bank v. CIT reported in [1999] 237 ITR 0889 (SC). 7. As regards the objection of the Department that the assessee has not provided copies of legal agreement with STPI, Chennai and with the clients for formal export contracts, the Ld.Counsel for the assessee placed the relevant agreement before us and we have gone through the same. 8. We have heard the rival contentions and gone through the facts and circumstances of the cases. We noted that the assessee is a 100% export oriented company engaged in manufacture and export of Computer software. The unit of the assessee company has been approved under the STP scheme of the Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtaking" means an undertaking which has been approved as a hundred per cent export-oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act;" 11. In this connection, it is to be noted that Circular No.68 dated 14.05.2009 issued by the "Export Promotion Council for EOUs & SEZs" states that from 1990 onwards Board of Approval has delegated the power of approval of 100% EOU to the Development Commissioners and accordingly, most of the 100% EOUs are approved by Development Commissioners. 12. Hence, in the case of the assessee, the green card by the Software Tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... djudicated by the Ld.CIT(A), because, that has become academic. Thus, these two appeals filed by the Revenue are dismissed. 15. Coming to Cross-Objections of the assessee, we noted that the Cross- Objections raised by the assessee are supportive of the order of the Ld.CIT(A). Since, we have adjudicated the issue of the claim of deduction u/s.10B of the Act, on merits and allowed in favour of the assessee by dismissing the appeals of the Revenue and we need not adjudicate the issue of re-opening, which is left open and accordingly, dismissed as infructuous. The Ld.Counsel for the assessee also stated that he is not pressing the grounds raised in the Cross-Objections in the eventuality of relief allowed by the Tribunal in dismissing the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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