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2019 (6) TMI 1173 - ITAT COCHINDeduction u/s 10B - consideration received in convertible foreign exchange which was not brought to India within six months to India - whether to be excluded from export turnover for computing the eligible deduction under section 10B - CIT(A) held that as per the provisions of section 10B(3) of the Act, assessee is eligible to claim deduction under section 10B only if the sale proceeds of the exports are received within six months from the end of the previous year or any further time granted by competent authority - HELD THAT:- As rightly pointed out by the CIT(A), the sale proceeds of exports in convertible foreign exchange were not brought to India within six months from the end of the previous year or any further time granted by competent authority in terms of section 10B - No infirmity in the order of the CIT(A) in rejecting the above ground taken by the assessee and the same is confirmed. Accordingly, this ground of appeal of the assessee is dismissed. Exclusion of exports made through sister concern from export turn over - HELD THAT:- We are inclined to dismiss this ground of appeal of the assessee by following the judgment of the Jurisdictional High Court in the case of Electronic Controls &. Discharge Systems (P) Ltd [2011 (7) TMI 541 - KERALA HIGH COURT] if the provisions of the Special Economic Zones Act, 2005, are brought into extend the exemption on profits derived on inter-unit sale made by industries within the Export Processing Zone, the court will be re-writing the legislation which is exactly what the Tribunal has done. In fact, the unit which purchased components from the assessee must be manufacturing final products and being a unit in the Special Economic Zone will be exporting the final product, on which that unit will get exemption on the entire profits which include the value of the components supplied by the assessee. Probably the Legislature did not want duplicity in exemption on export profit. That is why inter-unit sales in the Export Processing Zone are not treated as export within the meaning of section 10A of the Income-Tax Act, no matter such transfers are treated as exports for the purpose of Customs and Excise duty exemption. When the exemption is only on actual profits derived on exports made against receipt in convertible foreign exchange, the Tribunal, in our view, has no justification to extend it to profits received on local sales within India against payment received in Indian rupees - Decided against assessee.
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