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2023 (6) TMI 736 - AT - Income TaxDeduction u/s. 10AA - Trading activity - In the nature of "services" or not - activities of import of goods for re-export - HELD THAT:- As from the conjoint reading of the definition of ‘service’ and Rule 76 it is unambiguously clear that activity of trading falls within the meaning of services as defined under section 2(z) of SEZ Act. The letter dated 20/06/2011 from the office Development Commissioner, SEEPZ SEZ has further clarified that “In terms of explanation to Rule-76 of the SEZ Rules, 2006, the expression trading for the purpose of the Second schedule of the SEZ Act, 2005 shall mean import for the purpose of re-export” . The above clarification given by the Ministry of Commerce & Industries leaves no element of doubt that the activity of import of goods for the purpose of export falls within the meaning of services. Activities carried out by the assessee falls within the ambit of “services”, the expression used in section 10AA and the profits and gains derived from such services rendered from SEZ would be eligible for deduction u/s.10AA of the Act. As decided in Goenka Diamond & Jewellers Ltd [2012 (3) TMI 258 - ITAT JAIPUR] word services as mentioned in Section 10AA cannot be construed in-consistently with the definition of services given in the SEZ Act. Under the SEZ act, the trading is included in the services provided the trading is export of imported goods. We therefore, feel that the assessee is entitled to deduction u/s 10AA of the Act and therefore, the Ld. CIT(A) was justified in allowing the exemption - Decided against revenue.
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