Law:

Section:

Section 10B of the Income-tax Act, 1961 - Export-oriented undertaking - Assessment year 1998-99 - During assessment proceedings, assessee-company claimed that one of its units was exempt under section 10B - Assessing Officer disallowed its claim and Commissioner (Appeals) confirmed his order - On second appeal, Tribunal found that assessee's unit, which came into operation during year 1991-92, got converted into a 100 per cent export oriented unit in 1995-96 - Tribunal, therefore, held that in terms of Circular No. 1/2005, assessee was entitled to exemption under section 10B - Whether finding arrived at by Tribunal being finding of fact, no substantial question of law arose therefrom - Held, yes Circulars and Notifications : CBDT Circular No. 1/2005, dated 6-1-2005 FACTS During the assessment proceedings for the assessment year 1998-99, the assessee-company claimed that one of its units was exempt under section 10B. The Assessing Officer disallowed its claim. On appeal, the Commissioner (Appeals) confirmed the order of the Assessing Officer. However, on second appeal, the Tribunal observed that the assessee-company came into operation during the assessment year 1991-92 and its unit got registered as a 100 per cent EOU during the financial year relevant the assessment year 1995-96. The Tribunal held that the assessee would be entitled to deduction but the deduction would be restricted to the profit derived from exports from and after the date of approval of the unit as a 100 per cent EOU and not for the earlier period. On revenue's appeal : HELD The assessee had claimed exemption under section 10B for the first time vide letter dated 19-1-2001. Admittedly, the impugned exemption was not claimed by the assessee in the original as well as the revised return. That unit came into operation in the assessment year 1991-92, but during the financial year 1994-95 it got converted into a 100 per cent Export Oriented Unit (EOU) with the permission of the Department of Industrial Development, Ministry of Industry, Government of India, New Delhi vide letter dated 28-10-1994. Admittedly, Unit-II came into operation as a DTA unit for the first time during the assessment year…

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