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2020 (8) TMI 276 - HC - Income TaxDeduction u/s 10B - claim of assessee in respect of management fee while dealing with Section 10B especially when the service income was received from the Associate Enterprises which is not for any technical services rendred by the assessee? - Whether the income from Management fee could be treated as profit derived from export of valves and no deduction could be allowed to the Assessee u/s 10B since the Associate Enterprise has its own expertise to assemble the valves and therefore cannot be construed as technical services rendered by the assessee? - HELD THAT:- Finding stems from the details furnished by the assessee in Form No.3CEB. Admittedly, the amount will be received by the assessee through banking channels by way of convertible foreign exchange which has been defined in Section 10B(9A)(ii) which defines “convertible foreign exchange” to mean foreign exchage which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 and the Rules made thereunder or any other corresponding law for the time being in force. There is nothing on record to show that the convertible foreign exchange remittance did not fall within the definition as defined in Section 10B(9A)(ii). This Court, the decision in the case of Electronic Control and Discharge System Private Ltd. [2011 (7) TMI 541 - KERALA HIGH COURT] does not render any assistance to the case of the revenue. Furthermore, on facts we are satisfied that the only activity of the assessee is export as admitted by the revenue and the income generated by the Export Unit would be eligible for the benefit of Section 10B of the Act. For all the above reasons, we find no ground to disturb the finding of the Tribunal. - Decided against revenue.
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