- (1.) The subject matter of challenge in this appeal is a judgment and order dated April 30, 2013, by which the learned Tribunal, following an earlier decision allowed the claim of the assessee for exemption under section 10B of the Income-tax Act, 1961. Aggrieved by the order of the learned Tribunal, the Revenue has come up in appeal. Mr. Saraf, learned advocate appearing for the Revenue, submitted that the view taken by the learned Tribunal is patently contrary to the statute. In order to claim the benefit under section 10B of the Income-tax Act, one of the requirements is to be found in clause (iv) of Explanation 2 under subsection (8) of section 10B of the Income-tax Act which reads as follows: "'hundred per cent export-oriented undertaking' means an undertaking which has been approved as a hundred per cent export oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act;"
(2.) Mr. Saraf contended that the assessee does not admittedly have approval as 100 per cent export oriented undertaking by the Board appointed by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 and the Rules made thereunder. He drew our attention to the notification being S.O. No. 25(E,) dated January 13, 1981, by which the Board for granting approval was reconstituted, which reads as follows: "Board of approval for hundred per cent export oriented undertakings. Chairman (1) Secretary, Ministry of Commerce. Members (2) Secretary, Department of Industrial Development or his nominee. (3) Secretary, Department of Company Affairs or his nominee. (4) Secretary, Planning Commission or his nominee. (5) Secretary, Ministry of Finance, Department of Economic Affairs or his nominee. (6) Secretary, Department of Science and Technology or his nominee. (7) Secretary, Technical Development, Directorate General of Technical Development or his nominee. (8) Chairman, Central Board of Excise and Customs or his nominee. (9) Development Commissioner, Small Scale Industries or his nominee. (10) Chief Controller of Imports and Exports or his nominee. (11) Secretary of the administrative Ministry concerned or his nominee. Member-Secretary (12) Joint Secretary-in-charge of Secretariat for Industrial Approvals."
(3.) The assessee has relied upon, as would appear from the assessment order, the following: "A letter was written to the General Manager, District Industries Centre, Directorate of Cottage and Small Scale Industries requesting them to state whether they have the authority to issue certificate for the purpose of deduction under section 10B of the Income-tax Act, 1961. In response the General Manager, District Industries Centre, vide his letter dated July 4, 2005, categorically stated that the General Manager is merely the registering authority for allowing permanent/final small scale industries registration certificate to the SSI units approached for this purpose and is not authorised in any other way. He also referred to point No. 7 on the overleaf of the said registration certificate which reads as 'this certificate does not confer or accrue any right to the applicant and it cannot be treated as proof in any statutory requirement'.";