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2018 (9) TMI 1859 - AT - Income TaxDenial of deduction u/s 10B - deduction to the assessee on sales made to other EOUs - HELD THAT:- Identical issue has been considered by the Hon’ble Karnataka High Court in the case of Pr.CIT Vs. M.S.International Stone India P.Ltd [2018 (6) TMI 1478 - KARNATAKA HIGH COURT] and TATA ELXSI LTD. [2007 (10) TMI 630 - ITAT BANGLORE] ultimately held that sales made to other EOU would be considered to be in the ambit of “deemed export”. Thus we allow this common ground raised by the assessee in all three years. AO shall grant deduction to the assessee on sales made to other EOUs by treating them as “deemed export”. Addition made on account of suppression of sales and on account of under valuation of closing stock - AO has made reference to large number of information transmitted to him by the Custom & Excise authorities - HELD THAT:- We have confronted the ld.DR whether any steps have been taken during this period of nine years by the AO for collecting any other conclusive material. The DR was unable to supply any other information. Therefore, we are of the view that a roving inquiry cannot be allowed in the affairs of the assessee endlessly. It was for the Revenue to bring concrete material on the record on which any liability can be fastened upon the assessee. The Revenue failed to bring any evidence. We could appreciate the request of the ld.CIT-DR for remitting the file to the AO if after the order of the ld.CIT(A) in the year 2010 the Revenue was able to lay its hand on any material which could be produced before the Tribunal by way of additional evidence. It appears that proceedings remained dormant even after the order of the CIT(A) when additions have been deleted. No efforts have been made to collect any further information for justifying the challenge to the order of the CIT(A). In such situation, we cannot remit the issue to the file of the AO for re-investigation. We do not find any merit in these grounds of appeal. They are rejected. Production or manufacturing - segregation of scrap from mixed metal scrap - deduction u/s 10B and/or section 80I - HELD THAT:- As decided in assessee's own case [2014 (4) TMI 484 - GUJARAT HIGH COURT] activities undertaken by the assessee in segregating the scrap and carrying out process activities all that would amount to manufacture of article or thing whose export would entitle it for grant of deduction under section 10B as well as whose sales would entitle the assessee to claim deduction under section 80IB.
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