STPI unit claiming dedcution u/s 10B

I THINK THERE IS SOME CONFUSION IN YOUR QUERY, AS I AM SURE THAT 100% EOU STATUS IS AWARDED TO THE UNITS SITUATED OUTSIDE THE BOUNDARIES OF SEZ/STPI ETC. AND THE SAME ARE COVERED BY SECTION 10B ITSELF NOT BY SECTION 10A..

SECONDLY APPROVAL FROM BOARD IS MEANT FOR APPROVAL FROM STPI BOARD OF APPROVAL NOT CBDT AND WITHOUT STPI APPROVAL NOBODY COULD SAY THE UNDERTAKING AS 100% EOU...

I HAVE GOT COMPLETED A NUMBER OF 100% EOU SECRUTINY CASES..

IF THERE IS ANY CONFUSION ASK ME FURTHER IN THIS REGARD..

Thanks Nisha.

The unit acquired a 100% Software Development EOU status after registering with STPI. An STP may be an individual unit by itself or it may be one of such units located in an area designated as STP Complex by the Department of Electronics. I've confirmed with STPI and they should have claimed exemption u/s 10A. The units clamining exemption u/s 10B should be registered with the Board appointed by the Central Government u/s 14 of the Industries Development and Regulation Act, 1951.

Therefore, the unit now wants to claim exemption u/s 10A as it has been denied by the ITO u/s 10B.

Is there a circular/notification from CBDT that directs the ITO to allow the assessee to claim exemption under an alternative section if he has missed his rightful claims/concessions while filing his tax returns in first instance?

This case is for the AY 2008-09.

shri Rajnish Gupta ji

Please refer CBDT Instruction No.1/2006 dated 31.3.06 .Hope, thisinstruction will help you

Respected Nisha,

Do you have any judgment where deduction under section 10B is granted to unit registered under STPI as 100% EOU unit and doesn't have approval from board of approval. 

Is STPI registered unit is entitled to get income tax benefit under section 10B without any further approval from Development commissioner/Board for approval? We have approval from Director, STPI who has been delegated powers of development commissioner.

Please help ASAP.  thanks a lot.

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No. 156 of 2007
DATE OF DECISION : 24.07.2008 Commissioner of Income Tax, Chandigarh-II Vs
M/s Excel Softech Ltd., H. No. 1257, Sector 37B, Chandigarh
 

Please see this Case - A STPI Unit has claimed exemption under Section 10B

Sir, what happened in ur case ? do u received claim u/s 10B ? if yes How?

we have got exemption u/s 10B for three consecutive years for our 100% EOU.. it was A/y 2005-06, 2006-07, 2007-08.

Our unit is a 100% EOU registered with STPI since Oct 2005 exporting software. We started operations in april 2005.

We have claimed exemption from paying taxes arising out of exporting software outside the country (section 10B). . We donot have any local clients In AY 2008-09 there seems to be some confusion with respect to section 10B and the assessing officer denied our claim. It is the same issue as Mr. Rajinish Gupta explains in the top of the page.

Pleas help.

We are having similar issue. IT department has raised a demand againt us for a scrutiny case rejecting our claim under section 10B citing a High Court order. Anyone has any news on this front? has there been any respite on Tribunal front or any solution?

Refer the below case law for claim of Section 10B:

Cat Labs P.Ltd, Pune vs Department Of Income Tax on 20 February, 2014

ITA.No.131/PN/2013

(Assessment Year 2009-10)

This is a recent judgement. Also you can refer case of Heartland KG Information wherein Highcourt of Madras has allowed claim u/s 10A.

One of the most recent High Court level development in S. 10B deduction/exemption (there's a divergence of opinion between Bombay HC and Delhi HC and other HCs regarding whether 10B remains a deduction provision or is an exemption provision) is the case of Regency Creations decided by the Hon'ble Delhi HC on 17.09.2012.

Link is as follows: https://lobis.nic.in/dhc/SRB/judgement/19-09-2012/SRB17092012ITA692008.pdf

Of late, it is citing this case that the claims for allowance of assessees engaged in software exports and approved solely by STPI as a 100% EOU are being rejected by the Revenue.