TMI Blog2022 (4) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Government u/s 14 of Industrial (Development and Regulation) Act, 1951. We noted from the arguments of assessee 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 Government of India as a 100% Export Oriented Unit (EOU) for Computer software. The assessee has also been allotted the green card by the Software Technology Park of India. We are of the view that the Ld.CIT(A) has rightly allowed the claim of deduction u/s.10B of the Act as the alleged approval by Board, the powers have been delegated in regard to approval of 100% EOU to the Development Commissioner and accordingly, the assessee being a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dentical 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 deduction u/s.10B of the IT. Act for A.Y.2010-11. 2.1 The Ld. CIT(A) failed to notice that the assessee company had not obtained further approval and ratification from Board in order to avail the exemption of income u/s.10B of the Act, 3. The Ld. CIT(A) erred in holding that the assessee is eligible to claim deduction u/s.10A of the IT. Act being a recognized eligible unit under the STPI Scheme. 3.1 The Ld. CIT(A) failed to notice that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 /SEZs are delegated the power to approve units on behalf of the board of approval. To this extent, the assessee company has also obtained a deemed approval from central government in accordance with the provisions of the scheme. The assessee company has fulfilled all other conditions required for claiming deduction u/s 10B. This issue has also been discussed the Hon'ble Gujarat High Court in M/s. ECI Technologies Pvt. Ltd. (375 ITR 595) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 export contract with the client in the client s letter head and duly signed by both the parties. Submission of Softex Forms with export contract to STPI is mandatory. 6. The Ld.Counsel for the assessee Mr.T.Banusekar, argued that the assessee has fulfilled all the conditions and stated that the Export Promotion Council for EOUs SEZs issued Circular No.68 on 14.05.2009 i.e. subsequent to the Circular issued by the CBDT in F.No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Government of India as a 100% Export Oriented Unit (EOU) for Computer software. The assessee has also been allotted the green card by the Software Technology Park of India. 9. While completing assessment for the assessment year 2010-11 the Assessing Officer has denied the assessee's claim of deduction u/s.10B by referring to instruction No.2/2009 dated 09.03.2009 ratified by [F.No.178/19/2008-ITA-I] dated 08.05.2009 which s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Technology Park of India has been granted on 26.08.2005 recognizing the unit of the assessee as 100% EOU for Computer software. Therefore, the approval is in accordance with the provisions of section 10B. Hence, the assessee cannot be denied deduction u/s.10B on the ground that assessee has not got approval from Board appointed by the Central Government under Section 14 of Industrial (Development and Regulation) Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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