Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1109 - AT - Income TaxDeduction u/s 10AA - whether or not trading activity as carried out by the assessee during impugned AY would constitute service in terms of Section 10AA so as to enable him to claim deduction under the said Section? - Held that:- In M/S GITANJALI EXPORTS CORPORATION LIMITED VERSUS ADCIT-5 (1) , MUMBAI AND VICE-VERSA [2013 (5) TMI 922 - ITAT MUMBAI] Tribunal has taken a consistent view that keeping in view the over-riding effect of the provisions of Section 51 of the SEZ Act, 2005, the term service for the purpose of Section 10AA, deriving its meaning from Rule 76 of the SEZ Rules 2006 includes trading activities if it relates to the import of the goods for the purposes of re-export. Nothing on record suggest that the above decisions have been reversed subsequently by any higher judicial authorities. Further, the revenue is unable to bring on record any contrary decisions. Therefore, respectfully following binding judicial pronouncements, we find no infirmity in the impugned order. Having held so, in principal while agreeing with the claim of the assessee u/s 10AA, we deem it fit to restore the matter back to the file of Ld. AO to examine and verify the financial results reflected by the assessee in Deepak Gems (SEZ) since the same was not delved into by Ld. AO on account of the fact that the assessee was not eligible to claim the deduction u/s 10AA. The Ld. AO is directed to verify the financial results of the assessee reflected in the aforesaid unit and if found satisfactory, grant deduction thereof as per assessee’s claim.
|