Section 10AA deduction allowed in previous year can’t be denied in current year

Macquarie Global Services Pvt. Ltd. Vs DCIT (ITAT Delhi)

If eligibility of deduction u/s 10A or 10B or 10AA has been accepted in initial assessment year, then it cannot be withdrawn in subsequent years for breach of certain conditions which are required to be seen or examined in the first year of claim.

The assessee in the year 2007 had set up an Export Oriented Unit for which it was eligible for deduction u/s 10A / 10B. In the financial year 2010-11 another ‘SEZ unit’ was set up which started its operation in the assessment year 2011-12.

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