10b claim denied for stpi unit

Update - going for appeal since ITO denied the benefit. Any suggestions? 

Update - going for appeal since ITO denied the benefit. Any suggestions? 

Dear Sir,

Can you kindly clarify the business in which you are engaged?

Software Developer (100% Exports)

Dear Sir,

Kindly let me know if your unit is approved as 100* EOU by development commissioners or board appointed in this behalf by the central government. Also provide me the date from which you have started manufacturing of such softwares.

You can also write me on ganatraneil @ gmail.com.

Regards, 

Vipul and Neil

I am late in responding. But the following case law might be of some help.

The Karnataka High Court in the case of Expert Outsource (P.) Ltd. has held that Circular 1/2005 issued in connection with section 10B also applies for section 10A and that the tax holiday available to STPI units cannot be denied on conversion of domestic tariff area unit into STPI unit.  

Regards,

Dear Dipjyoti,

If it is the case of transfer from DTA unit to STPI then it will be of help definitely. But I think this is not the case with Mr. Vipul. But yes if can have the whole judgement, then may use some part of that if relevant. Only Mr. VIpul can clarify this.

Btw it's always better to be late than never. Atleast we have your valuable response...

Thanks & Regards,

Ours is an STPI registered unit approved by the STPI director. The STPI approval papers state that we are approved as an 100% EOU under the STPI scheme.  Started manufacturing from 2008. This is not a case of a DTA unit converted to an STPI unit. We have been an EOU from day 1 and do not have any DTA activity. The claim is not denied on the basis of conversion. It is denied simply because we “mistakenly” claimed exemption under section 10B when we should have mentioned 10A in our return. Also, the ITO did not allow us to change our claim from 10B to 10A during assessment proceedings. ITO is claiming that we should have submitted Form 56F instead of Form 56G.

Thank you very much for all your help.

Found this related link. Does not help conclusively. 

https://www.lawyersclubindia.com/forum/STPI-unit-claiming-dedcution-u-s-10B-28054.asp

Dear Mr. Vipul,

I had already gone through this link before 2 days. I had also read the judgement of Excel softech which is mentioned in that. But that case is not like yours so I didn't post it here. I am not able to find out the similar situation in any other case. However, I'll try to find out but it may take some time. Is your AO ready to give exemption u/s 10A? 

As per recent trends though you will appeal to CIT Appeals, there might be a situation where your AO will not grant full stay on demand. He might grant a partial stay. Do negotiate with him and apply for a staggered payment.

Hi,

I was wondering if anyone had any ideas or suggestions.