April 2009
Clarification regarding approvals of 100% EOUs for the purpose of deduction u/ s.10B of the Act — Instruction No. 2/2009, dated 9-3-2009 (reproduced).
By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Nimesh Dedhia, Vijay Kewalramani
Chartered Accountants
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4 Clarification regarding approvals of 100% EOUs for
the purpose of deduction u/ s.10B of the Act — Instruction No. 2/2009, dated
9-3-2009 (reproduced).
S. 10B of the Income-tax Act provides for exemption of
income in case of hundred percent export-oriented undertakings subject to
prescribed conditions. Explanation 2(iv) below to the said Section defines a
‘hundred percent export-oriented undertaking’ as an undertaking so approved
by the Board appointed in this behalf by the Central Government u/s.14 of
the Industries Development and Regulation Act, 1951. Subsequent to the
delegation of this power by the Ministry of Commerce and Industries to the
Development Commissioners, such approvals to 100% EOU’s are now being
granted by the Development Commissioners, which are later ratified by the
Board of Approvals.
The matter regarding validity of approvals given by
Development Commissioners has been examined in the Board. It has been
decided that an approval granted by the Development Commissioner in the case
of an export-oriented unit set up in an Export Processing Zone will be
considered valid, once such approval is ratified by the Board of Approval
for EOU scheme.
F.No.178/19/2008-ITA-1
(Padam Singh)
Under Secretary (ITA-I)
