Heard Mr. Dayaleeswaran, the learned counsel appearing for the petitioner and Mr.A.P.Srinivas, the learned Senior Panel Counsel appearing on behalf of the respondents.
2. The petitioner in this writ petition has prayed for writ of declaration to declare that the petitioner is engaged in manufacturing activity and that the recognition of the respondents 1 to 3 shall bind the respondents 5 and 6/ Income Tax Department, in the matter of application of
Section 10B of the Income Tax Act.
3. Though the counter affidavit has been filed by the respondents, it is pointed out by the learned Standing counsel appearing for the Revenue that the the matter need not be adjudicated in the light of certain subsequent developments. It is pointed out that the same issue was considered by the petitioner's Assessing Officer viz., the sixth respondent for the assessment year 2003-2004 and vide order dated 26.12.2008, it was concluded that the petitioner satisfies the essential requirements as stipulated under
Section 10B (2)(iii) of the Income Tax Act, 1961.
The operative portion of the order reads as follows:
Thus:
(i) The sequence of various activities undertaken by the assessee as narrated above clearly establish that they manufacture or produce processed and dressed dimensional granite blocks in assorted dimensions.
(ii) The activities undertaken by the assessee squarely falls under the term manufactures or produces and thereby they satisfy
Section 10B (2)(i) of the Income Tax Act, 1961 and
(iii) It is satisfied that the assessee has not formed the unit by splitting up, or the reconstruction, of a business already in existence.
(iv) The assessee satisfied the essential legal requirements as stipulated under
Section 10B(2)(iii) with regard to formation of EOU with previously used plant and machinery to the tune of 12.88% which is less than 20% as statutorily prescribed under the Income Tax Act, 1961.
In view of the foregoing reasons, I am thoroughly convinced and the assessee's claim of exemption under
Section 10B of the Income Tax Act, 1961 is finally allowed and the assessment is completed and accordingly. Further, it is pointed out that for the assessment year 2007-2008, which was a scrutiny assessment under Section 143 of the Act, the above position with regard to the petitioner satisfying the essential legal requirements as stipulated under
Section 10B(2)(iii) of the Act has been reiterated in the assessment order dated 02.12.2009.
4. In the light of the subsequent developments, the issue, having been already settled in favour of the petitioner, no further orders are required in the writ petition, except to record a stand taken by the department in favour of the petitioner in the above referred assessment order.
5. Accordingly, this writ petition stands disposed of with the above observations. Consequently, connected miscellaneous petition is closed. No costs.