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JUDGMENT Mrs. Chitra Venkataraman, J. - The assessee has preferred the above Tax Case (Appeals) as against the common order of the Income Tax Appellate Tribunal relating to the assessment year 2001-02. 2. The assessee is engaged in the business of manufacturing auto parts, particularly cold forged auto components. The assessee has four units, situated at Ekkaduthangal, Medavakkam, Kolapakkam and Thirumudivakkam. For the assessment year 2001-02, the assessee showed a net profit of Rs.14,63,54,338/- and claimed exemption under Section 10B of the Income Tax Act at Rs.11,16,23,811/- in respect of its 100% Export Oriented Unit (EOU), situated at Thirumudivakkam. 3. The assessment was taken up for scrutiny and accordingly, notice under Section 143(2) of the Income Tax Act was served on the assessee on 31.10.2002. A survey under Section 133 A of the Income Tax Act was conducted in the EOU unit, situated at Tirumudivakkam on 14.11.2003 to verify the claim of exemption under Section 10B of the Income Tax Act. During the course of survey, statement was recorded from the General Manager (Operations) and subsequently, the Managing Director of the company was enquired and his statement was also recorded. On an analysis of the facts the Assessing Officer held that the land at Thirumudivakkam was purchased in the year 1999 from SIDCO and the construction of the factory building therein was commenced during June, 1999 and completed during March, 2000. The unit was first registered as Domestic Tariff Area Unit (DTA) with the Central Excise Authorities on 03.11.1999. The activities like building construction, plant erection, machinery erection, commissioning and testing of machinery etc. were carried out in the DTA unit prior to its conversion into EOU in March, 2000. An application dated 11.3.2000 was submitted by the company before the Madras Export Processing Zone (MEPZ) to treat the DTA Unit as 100% EOU unit. The list of machinery already installed in DTA before its conversion into EOU Unit was mentioned in the application. These machinery were stated to have been transferred from other units to the Thirumudivakkam unit. It is stated that the machinery installed in the said…

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