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2013 (5) TMI 783 - ITAT CHENNAIDeduction u/s 10B - 100% EOU - exclusion of Trading profits - Held that:- During the course of the assessment proceedings, the Assessing Officer noticed that the assessee-company has purchased granites to the extent of ₹ 42,62,996 and the same was exported. The Tribunal, Mumbai Bench in the case of T. Two International P. Ltd. v. ITO [2008 (10) TMI 384 - ITAT MUMBAI] has observed that to allow deduction under section 10A the material consideration is export of eligible goods and not whether those goods are manufactured or purchased by the assessee. Profits from both, the self manufactured as well as trading in goods have been made eligible for deduction under section 10A of the Act. The above decision was rendered by the Mumbai Bench of the Tribunal in respect of deduction relating to section 10A of the Act. However, we are of the opinion that section 10A and section 10B are similar. The apprehension of the Commissioner of Income-tax (Appeals) is that if the trading receipt also is included in the eligibility under section 10B, the assessee will set up token production and start free trading. The facts in the present case are not supporting the view taken by the Commissioner of Income-tax (Appeals) . Therefore, the decision rendered in the case of T. Two International P. Ltd. even applies to section 10B. - Decided in favour of assessee.
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