TMI Blog2007 (3) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... these decisions are not in respect of deduction u/s 10B, but they are in respect of deduction claimed u/s 80-I. However, in these cases also it was held that it is not necessary to maintain separate books of accounts but what is necessary is that necessary conditions for claiming the deduction have to be satisfied. In the present case, there is no dispute that the assessee has fulfilled all the conditions. We therefore are of the considered view that the AO was not justified in denying the claim of the assessee on account that no separate books of accounts have been maintained by the assessee but the CIT(A) was justified in allowing the claim of the assessee. Therefore, in view of the reasoning given by the CIT(A), we confirm his order f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company does not maintain separate books of accounts for this unit. The claim under s. 10B has been worked out on the basis of proportionate turnover of Koregaon unit. To examine this issue of allowability of deduction, the AO required the assessee to file the details and explanation that how the deduction claimed by it without maintaining separate books of accounts are allowable. Detailed explanation was filed. A certificate from appropriate authority that the said unit is a 100 per cent export-oriented unit was filed. After examining the details, the AO noticed that no separate books of accounts have been maintained by the assessee company. The AO was of the view that without maintaining separate books of account, it is not possible to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled submissions and reasons given before the AO have not been considered by the AO in right perspective. Accordingly, it was requested to allow relief under s. 10B, since it is not the requirement of law to maintain separate books of accounts. It was also submitted that working of profit for the purpose of deduction under s. 10B has not been disputed by the AO. 5. After considering the submissions and perusing the relevant material on record, the learned CIT(A) came to a conclusion that the assessee is entitled for deduction under s. 10B. Accordingly, he allowed deduction to the assessee for both the years. 6. Now the Department is in appeal here before us against the order of the CIT(A) for both the years. 6.1 The learned Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of plant and machinery. The above permission is subject to the conditions stipulated in annexure in addition to the following conditions: (i) The entire (100 per cent) production shall be exported to general currency area countries/hard currency area countries. (ii) You shall undertake to export the entire production (100 per cent) excluding rejects not exceeding 5 per cent for a period of 10 years. For this purpose, you will furnish the requisite legal agreement/bank guarantee. After the export obligation period is over, the unit shall be allowed to produce for domestic market in the light of industrial policy in force at the time in relation to manufacture of items reserved for small scale sector and sectoral policy prevailing at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all not apply in respect of any undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in s. 33B, in the circumstances and within the period specified in that section; (i) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. 2.4 In view of the above provisions of s. 10B, any profits and gains which are derived by an assessee from a 100 per cent export-oriented undertaking shall not be included in the total income of the assessee, if the conditions in sub-s. (2) of this section are fulfilled. Looking to these conditions as mentioned in sub-s. (2) of this section, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative. These decisions are Punjab Tractors Ltd. vs. Dy. CIT (2004) 89 TTJ (Chd) 439, CIT vs. Hindustan Malleables Forgings Ltd. (1991) 191 ITR 70 (Pat), CIT vs. Sree Krishna Pulversing Mills (2000) 163 CTR (AP) 151 : (2000) 241 ITR 262 (AP) and Mahindra Sintered Products Ltd. vs. CIT (1989) 75 CTR (Bom) 83 : (1989) 177 ITR 111 (Bom) and found that though these decisions are not in respect of deduction under s. 10B, but they are in respect of deduction claimed under s. 80-I. However, in these cases also it was held that it is not necessary to maintain separate books of accounts but what is necessary is that necessary conditions for claiming the deduction have to be satisfied. In the present case, there is no dispute that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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