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2017 (9) TMI 1885 - AT - Income TaxDeduction u/s 10AA - activity of the assessee is manufacturing OR not ? - assessee is a firm engaged in the business of manufacture and exporting of Pulverized garnet abrasive grit - CIT-A allowed the claim - HELD THAT:- SEZ Authorities has recognized the SEZ unit of the assessee and also held that the activity of the assessee is manufacturing as per the SEZ Act - materials exported by the assessee consisting of 50% grade is also not in dispute. SEZ Authorities had also certified that assessee’s SEZ unit has commenced production on 29.02.2012 and this establishes the fact that the pre-fabricated building of the assessee was completed earlier to 29.02.2012. AO could not establish that the assessee had formed its SEZ unit by splitting up or by reconstruction with cogent evidence. AO has also accepted that the assessee’s unit processed the raw materials by removing 10 to 20% of the impurities. The comparison of the market price and invoice price by the Ld.AO were proved to be incorrect because the price of the finished product was stated as ₹ 15,269/- in the year book 2013 while as the appellant has sold the same at the price of ₹ 17,098/-. AO could also not establish that the assessee had suppressed the purchase cost of semi-furnished goods in order to claim higher deduction U/s.10AA - certificates issued by the concerned officers of the SEZ unit could not be proved to be not genuine. CIT(A) had made a categorical finding on all the above stated facts and the Ld.DR could not convincingly argue or disprove the findings of the Ld.CIT(A) - we hereby sustain the order of the Ld.CIT(A) on merits. - Decided against revenue.
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