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2019 (1) TMI 1015 - AT - Income TaxDenial of exemption claimed u/s 10AA - sale made by one SEZ unit to another SEZ unit - assessee is engaged in the business of manufacturing of scaffoldings and there export directly - Section 51(1) of SEZ Act, 2005 overriding effect over the income Tax Act - Held that:- Provisions of the Special Economic Zones Act, 2005 shall prevail over the provisions of the Income Tax Act and Hon’ble Delhi High Court in the case of CIT(A) Vs. Vaisth Chay Vyapar Ltd. [2010 (11) TMI 88 - DELHI HIGH COURT] has held that there is a provison in another enactment which contains non obstante clause then that would override the provision of the Income Tax Act. In such circumstances and facts of the case Section 51(1) of the Act as a non obstante clause and within the definition u/s 2(m) of the Special Economic Zones Act, 2005 exports includes providing services or supplying goods from one unit to another in the same or different Special Economic Zones. Accordingly, the view taken up by the CIT(A) and the A.O cannot hold good and is directed to be reversed. - Decided in favour of assessee. Addition of bad debts - Held that:- Bad debts were actually written off in the books of accounts that can be seen from the books of account for Assessment Year 2010-11. The said has been accepted by the Revenue. Therefore, the decision in case of TRF Ltd. [2010 (2) TMI 211 - SUPREME COURT] as well as the Circular No. 12/2016 dated 30/5/2016 is applicable in the present case. The CIT(A) as well as the Assessing Officer were not correct in making addition of ₹ 1,55,00,500/- under the head bad debts which were claimed by the assessee in the profit and loss account. - Appeal of the assessee is allowed.
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