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2020 (10) TMI 301 - HC - Income TaxDeduction u/s 10B - HELD THAT:- Section 10A and 10B of the Act are pari materia provisions. However, difference is with regard to nature of the unit. Section 10A deals with Free Trade Zone (FTZ) unit whereas, Section 10B deals with 100% export oriented unit. Section 10A of the Act covers newly established undertaking in Free Trade Zones whereas, Section 10B deals with newly established 100% export oriented undertakings. Section 10A of the Act was introduced to give effect to EXIM policy of the Central Government. Policy deals with exchange through others and provides that EOU/EHTP/STP/BTP unit may export goods manufactured / software developed by it through another exporter or any other EOU/EHTP/STP/SEZ unit subject to the conditions mentioned. In the instant case, admittedly, the assessee is a manufacturing unit and is 100% export oriented unit as has been found by the Tribunal in para 3 of the order. The assessee has manufactured precision components and has exported the same through Toyota Tsusho P. Ltd., which had received the export proceeds in convertible foreign currency. Therefore, the assessee was entitled to the benefit of deduction under Section 10B of the Act. Substantial questions of law framed by this court are answered in favour of the assessee and against the revenue. The orders passed by the AO, CIT (Appeals) and the order of the Tribunal insoafar it deprives the assessee of the benefit u/s 10B of the Act are hereby quashed and the assessee is entitled to the benefit of deduction under Section 10B of the Act.
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