Law:

Section:

Section 10B of the Income-tax Act, 1961 - Export oriented undertaking Activity of cutting, polishing and sizing of granites amounts to production within meaning of section 10B [Assessment year : 2001-02] [In favour of assessee] CIT v. Fateh Granite (P.) Ltd. [2009] 222 CTR (Bom) 638 The language used in section 10B is 'manufacture or production'. This language is similar to the language used in section 80-IB. The Supreme Court in CIT v. Sesa Goa Ltd. [2004] 271 ITR 331 had an occasion to consider the expression 'production'. The expression 'manufacture' or 'production' are different expressions and the word 'production' has a wider meaning as explained by the Apex Court in Sesa Goa Ltd. (supra), the word 'production' under section 10-IB considering similar expression in section 80-IB will have to be given wider meaning. Thus, the activity of cutting, polishing and sizing of granites amounts to production within meaning of section 10B Suresh Kumar and P.S. Sahadevan for the Appellant. S.N. Inamdarand A.K. Jasani for the Respondent. ORDER By The Court : The appeal is in respect of asst. yr. 2001-02. In respect of amount claimed under s. 10B of the IT Act, the AO was pleased to hold that for granting of deduction under s. 10B, there must be an approved 100 per cent export oriented undertaking. On facts, the AO held that the assessee was unable to show the bank realisation certificate for the export sales. In the appeal preferred by the assessee before the CIT(A) on this issue, CIT(A) remanded the matter back to the AO to verify the claim of the assessee and to allow deduction to the extent related to export sale proceeds received in convertible foreign exchange in India within time-limit prescribed in sub s. 10B of the Act. On the matter being remanded back to the AO, the AO by revised order dt. 1st May, 2006 allowed the claim of the assessee under s. 10B of the Act. 2. Revenue aggrieved by the order of the CIT(A) directing the AO to allow deduction in terms of s. 10B of the Act read with proviso thereof preferred an appeal to the learned Tribunal and relied on the judgment of the Rajasthan High Court in the case of Arihant Tiles & Marbles (P.) Ltd. v. ITO…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492