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TMI Blog2022 (5) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... nds of appeal is against the order of Ld. CIT(A) in dismissing the appeal of the assessee by not condoning the delay of the assessee thereby not deciding the appeal on merit. 3. The facts in brief the assessee is engaged in manufacturing of Specialized Refractories at its facility situated at new area of Kandla Special Economic Zone. The said unit is eligible for exemption u/s 10AA of the Income Tax Act, 1961 (hereinafter referred to as the Act) @ 100% of profits and gains derived from exports for a period of five consecutive assessment years beginning with the assessment year relevant to previous year in which it commenced manufacturing. In the instant case the unit has commenced manufacturing on 1.5.2012 relevant to assessment year 2013- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 13.02.2018 with a delay of 187 days. The assessee moved a condonation petition before the Ld. CIT(A) for condoning the delay and admitting the appeal for adjudication. The Ld. CIT(A) however dismissed the appeal of the assessee by holding that the intimation u/s 143(1) of the Act dated 7.7.2017 was sent through e-mail on 11.07.2017 and the appeal should have been filed on or before 10.08.2017. The Ld. CIT(A) observed that the letter dated 1.12.2016 could not be considered as rectification petition u/s 154of the Act because there was no order existed on that date against which the rectification petition could be filed and therefore the delay in filing the appeal is without sufficient reasons and thus dismissed the appeal as barred by lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forward losses against the profits eligible for exemption u/s 10AA of the Act and requested the AO to do the needful to allow the assessee's claim of exemption of Rs. 6,45,41,233/- but in the meantime the return of the assessee was processed u/s 143(1) of the Act vide order dated 7.7.2017 by CPC, Bangalore wherein the exemption u/s 10AA of the Act was restricted to Rs. 2,07,72,302/-. The intimation was sent through e-mail on 11.07.2017 whereas the appeal was filed on 13.02.2018 with a delay of 187 days. The assessee has filed condonation petition before the Ld. CIT(A) explaining the reasons for late filing of appeal. We note that the similar exemption was allowed in the preceding and succeeding assessment years. In our considered view even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply the law in a meaningful manner so that the ends of justice is served. The court observed that "everyday's delay must be explained" does not imply a pedantic approach. The doctrine must be applied in a rational, common sense and pragmatic manner. The court held that when substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred. In the present case, the assessee is not benefitted in any manner by filing the appeal before the Ld. CIT(A) after the due time. We, accordingly set aside the order of the Ld. CIT(A) .The ground nos. 1 to 5 are allowed. 5. In the ground nos. 6 & 7, the assessee has challenged the order of the Ld. CIT(A) in not deciding the issue on m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of profits from the unit in the said zone has to be allowed while computing the income of the eligible undertaking under Chapter IV of the Act and not at the stage of computing total income under Chapter VI . In other words , the Hon'ble Court has held that the deduction u/s 10A of the Act is to be allowed against the profit and only thereafter the brought forward losses and income from other hands and the provisions for set off and carry forward contained in Section s 70,72 & 74 would be allowed. Similar ratio have been laid down by Hon'ble Bombay High Court in the case of CIT vs. Black and Veatch Consulting Pvt. Ltd. reported in [2012] 348 ITR 72 (Bom) and by Hon'ble Delhi High Court in the case of CIT vs. TEI Technologies Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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