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2016 (10) TMI 689 - AT - Income TaxAllowance of of deduction u/s.10AA - whether the export sales as supporting manufacturer, Sales to EOUs and SEZs are eligible for deduction u/s.10AA? - Held that:- In the present case, the goods have left India and consideration on sale of such goods having being received in India is not in dispute and in such a situation we are of the view that denial of deduction u/s 10AA of the Act is uncalled for more so, when as S.10AA of the Act does not provide for export of own goods or bringing in of foreign currency of the goods exported. We further find that Ld CIT(A) has relied on the decision of Hon'ble Kerala High Court in the case of Electronics Control and Discharge Systems Pvt. Ltd. [2011 (7) TMI 541 - KERALA HIGH COURT ] in coming to the conclusion that only direct exports where the assessee brings foreign convertible exchange into India qualifies for being eligible export turnover for the purpose of computing deduction u/s 10AA of the Act. We find that Hon'ble Kerala High Court in the aforesaid case was dealing with the provision of s. 10A and not with respect to s.10AA and in view of the difference in the definition of "export turnover" in both the sections, we are of the view that the aforesaid decision of Hon'ble Kerala High Court cannot be relied by the Revenue authorities for denying the deduction to assessee. Before us, Revenue has not placed any other direct decision where the issue related to provisions of S.10AA in its support. In view of the aforesaid facts, we set aside the order of Ld CIT(A) and thus allow the ground of Assessee.
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