- (1.) Tax Case (Appeal).Nos. 371 of 2005, 1225 and 1226 of 2008 are filed at the instance of the Revenue as against the order of Income Tax Appellate Tribunal for the assessment years 1995-96, 1993-94 and 1996-97 respectively. The above Tax Case Appeals were admitted on the following substantial questions of law:- "1.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee's unit which was only engaged in executing job work for the foreign companies under agreements with them and which has not exported any articles or things or computer software was entitled to exemption under Section 10B? 2.Without prejudice to the above questions, whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee was eligible for exemption under Section 10B even though the eight year period commencing from the assessment year 1984-85 for claiming the exemption ended with the assessment year 1991-92 and the assessee had not exercised its option under Section 10B(5) for the assessment year 1989-90, 1990-91 and 1991-92?"
(2.) As far as Tax Case (Appeal).No. 131 of 2006, filed at the instance of the Revenue as against the order of Income Tax Appellate Tribunal for the assessment year 1997-98 is concerned, in addition to the above two questions of law, the following question of law also arose for consideration:- "Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee company had established a new Export Oriented Unit which was not a revival or reconstruction of the old unit disregarding the facts narrated by the Assessing Officer?"
(3.) The facts relating to the case herein are that the assessee company was recognized as 100% Export Oriented Unit (EOU) by the Government of India and started its commercial production, with effect from 4.9.1989. It is stated by the Assessing Officer that by December 1989, the assessee company became sick. Consequently, it entered into memorandum of understanding with a foreign collaborator, to work on their behalf on job work basis; with the result, the assessee started its earlier business and went ahead with the new business in the manufacture of films and export of thick film revistors, chip resistors etc.;