PCIT v. Jeans Knit Pvt. Ltd. (2021) 430 ITR 476 (Karn.)(HC)

S. 10B : Export oriented undertakings-Formed not by reconstruction-Entitle to exemption-Enhancement of claim during assessment proceedings-Direction of Tribunal is held to be justified- Deemed dividend-No accumulated profits- Deletion of addition is held to be justified. [S. 2(22)(e), 254(1)]

Dismissing the appeal the Court held that the undertaking was not  formed by reconstruction  hence  the order of  Tribunal is affirmed.  Followed  Bajai Tempo Ltd. (1992)  196 ITR 188 (SC) . As regards the enhancement of claim the Court affirmed the finding of the Tribunal Court also held that as there was no accumulated profits the provision of section 2(22)( e ) cannot be made applicable. (AY.2007-08, 2008-09, 2010-11)