Section 10B only requires approval by competent authorityand does not require that separate approval for each unit

Maral Overseas Ltd. v ACIT [2012] 20 346 (Indore – Trib.)(SB)

  • Deduction under section 10B not deniable merely because assessee was only granted certificate for enhanced capacity by way of amendment of original certificate and not a fresh sanction letter in form of certificate.
  • “Undertaking” means a unit/business which has a separate and independent existence distinct from other units/business; having independent infrastructure, separate plant and machinery being set up with substantial capital investment and having an identifiable output and profits attributable thereto can be determined.
  • As long as approval is there, manner of granting approval/licence for new unit is not relevant; even endorsement on existing licence/approval would be sufficient for considering unit as distinct and separate undertaking if above definition of ‘undertaking’ is fulfilled.
  • Sale of export entitlement/special import license not excludible while computing deduction – [2012] 20 346 (Indore – Trib.)(SB)


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