Case law › Circulars › 2009 › Corrigendum [F. NO. 178/19/2008-ITA-1], dated 8-5-2009

CBDT circular 8 May 2009

Corrigendum [F. NO. 178/19/2008-ITA-1], dated 8-5-2009

100% Export Oriented Unit - Eligibility for deduction under section 10B - Corrigendum to Instruction No. 2/2009

What this is

Corrigendum [F. NO. 178/19/2008-ITA-1], dated 8-5-2009 was issued by the Central Board of Direct Taxes on 8 May 2009. Its subject is 100% Export Oriented Unit - Eligibility for deduction under section 10B - Corrigendum to Instruction No. 2/2009.

What it does

Replaces the second paragraph of Instruction No. 2/2009 dated 9 March 2009 on the eligibility of a hundred per cent export oriented unit for deduction under section 10B. In the substituted text the Board says that an approval granted by the Development Commissioner to such a unit will be treated as valid once it is ratified by the Board of Approval for the EOU scheme. Chief Commissioners are asked to circulate this to all officers under their charge.

Why it was issued

The Board had examined the question whether approvals given by Development Commissioners were valid approvals for section 10B purposes, and the earlier instruction did not state the position it finally took.

Who it reaches

Hundred per cent export oriented units claiming deduction under section 10B
Units approved by a Development Commissioner rather than directly by the Board of Approval
Assessing Officers testing section 10B claims

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.10B	no counterpart recorded

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

100% Export Oriented Unit - Eligibility for deduction under section 10B - Corrigendum to Instruction No. 2/2009
Corrigendum [F. No. 178/19/2008-ITA-1], dated 8-5-2009
CBDT has issued an instruction No. 02/2009 dated 9th March, 2009. The second para of that instruction may be substituted with the following para :-
"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 hundred percent export oriented unit will be considered valid once such an approval is ratified by the Board of Approval for EOU scheme."
This may kindly be brought into the notice of all officers under your charge.
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What to watch

This is only a corrigendum; it has no independent content and must be read with Instruction No. 2/2009 dated 9 March 2009.
Ratification by the Board of Approval is the operative condition, so the date of ratification, not the date of the Development Commissioner's approval, is what an officer will look for.
It is an internal instruction corrected by an office corrigendum, not a numbered circular of the Board.

Where you meet it

In a scrutiny assessment where the section 10B deduction of an export oriented unit is questioned because its approval came from the Development Commissioner, or in the appeal that follows such a disallowance.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Circular 7/DV/2013, dated 16-7-2013 — Section 10A, read with Sections 10AA & 10B of the Income-tax Act, 1961 - Free Trade Zone - Clarification on Issues Relat 16 July 2013
Circular No. 5/2010, dated 03-06-2010 — Circular No. 05 /2010 3 June 2010
Circular No. 1/2005 — 1/2005 dated 06 01 2005 6 January 2005
Circular No. 8/2002 — Finance Act, 2002 27 August 2002
Circular No. 13 — Section 115JA/SECTION 115JB l Minimum Alternate TAX 11 September 2001
Notification No. 11523 — A notification under section 10B of the Income-tax Act, 1961 27 September 2000

← Circular No. 3/2009 · Circular No. 1/2009 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.