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2021 (12) TMI 1200 - AT - Income TaxDisallowance of deduction claimed u/s 10AA after claiming deduction / exemption u/s 10A - SEZ unit - HELD THAT - The assessee company was incorporated in February 2000 in Tambaram MEPZ Chennai which was later converted into SEZ and commenced the production in December 2000. The company had claimed deduction of 100% for the assessment years 2001-02 to 2005- 06 (five years) u/s 10A of the Act as well as 50% from 2006-07 to 2010-11 (5 years). The Special Economic Zones Act 2005 inserted section 10AA of the Act effective from 01.04.2006 and as per proviso to section 10AA of the Act 50% deduction was claimed by the assessee from assessment year 2006-07 till 2010-11 (5 years) and 50% from assessment years 2011-2012 for five years. Explanation to section 10A of the Act states that for the removal of doubts it is hereby declared that an undertaking being the unit which had already availed before the commencement of the Special Economic Zones Act 2005 the deductions referred to in section 10A for ten consecutive years such unit shall not be eligible for deduction from income under this section. In view of the above provisions it was the submissions of the assessee that the period of ten consecutive assessment years needs to be seen only as before commencement of the Special Economic Zone Act 2005. As on the commencement of assessment year 2006-07 which is the effective date of operation of section 10AA the unit has just claimed deduction under section 10A only for five assessment years and therefore the assessee has submitted that the assessee company is entitled for deduction under section 10AA. Tribunal in assessee s own case for the assessment year 2011-12 2019 (12) TMI 536 - ITAT CHENNAI may be followed for the assessment year under consideration as while deciding the appellate order for the assessment years 2012-13 and 2013-14 the ld. CIT(A) followed the Tribunal s order for the assessment year 2011-12 and decided the appeals in favour of the assessee.
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