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2018 (6) TMI 1478 - HC - Income TaxExemption u/s.10B - assessee being 100% Export Oriented Unit (EOU) for these assessment years in respect of the ‘deemed export of goods’ made during the period in question through a third party - Held that:- ‘Deemed Export’ by the assessee Undertaking even through a third party who has exported such goods to a Foreign country and has fetched Foreign Currency for India, still remains a ‘Deemed Export’ in the hands of the assessee undertaking also. If the Parliament intended to put any restrictive meaning for curtailing the said deduction, such words could be employed in sub-section (1) itself, which could have excluded ‘Deemed Export’ from the ambit and scope of word ‘export’ employed in sub-section (1) of S.10B. The Explanation defining ‘Export Turnover’ in both these provisions does not make any such distinction between the ‘Direct Export’ and ‘Deemed Export’. The word ‘export’ read with the background of Exim Policy of Union of India would certainly include ‘Deemed Export’ also within the ambit and scope of the ‘Export Turnover’ as explained in Explanation-2 of sub- section (9A) of the said S.10B of the Act. Restrict the deduction in the hands of the respondent-assessee by excluding the ‘Deemed Exports’, does not have any merit and the said contention deserves to be rejected and the same is accordingly rejected. Establish that both the Respondents-assessees before us and the entity through whom such export was made by the assessee for the period in question, have claimed any double or repetitive benefit u/s.10B of the Act for the same transaction of export. The issue raised in the present case by the Revenue is squarely covered by the decision of the Division Bench of this Court in M/s. Tata Elxsi’s case [2015 (10) TMI 634 - KARNATAKA HIGH COURT] - substantial question of law decided in favour of the assessee.
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