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2016 (2) TMI 193 - ITAT JAIPUR

2016 (2) TMI 193 - ITAT JAIPUR - TMI - Entitlement to deduction u/s 10AA - Held that:- Given the consistent decisions of the Coordinate Bench where the deduction has been allowed to the assesee u/s 10AA of the Act in respect of profit earned on trading of re-export of imported goods, respectfully following the said decisions, the assessee in the instant case shall be eligible for deduction u/s 10AA of the Act. See M/s Goenka Diamond & Jewellers Lt.[2012 (3) TMI 258 - ITAT JAIPUR] - Decided in fa .....

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₹ 6,71,89,986/- u/s 10AA of the IT Act, 1961 as the condition laid down in the section 10AA of the IT Act, 1961 for claiming the deduction are not fulfilled. 2. The relevant facts for the issue under consideration, are as follows: 2.1 During the assessment proceedings, it was observed by AO that assessee firm made re-export of imported goods amounting to ₹ 65,35,59,139/- and declared net profit of ₹ 7,32,19,235/- which have been claimed as deduction u/s 10AA of the IT At, 1961, .....

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f Rule 76 of the SEZ rules read with instruction No.4 of 2006 dated 24.05.2006 issued by the Ministry of Commerce & Industry, Government of India. 2.3 As per AO, the assessee firm is not engaged in manufacturing or producing article or things or providing any services but merely engaged in trading activity which is not eligible for deduction u/s 10AA of the I.T. Act. In support, the AO has stated the following reasons in its order: (i) It is settled law that definition of an expression in on .....

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acturing section 10AA of I.T. Act has referred to sub section 2(r) of SEZ Act but for the definition of services, I. T Act 1961 has deliberately not referred to SEZ Act, 2005. This is specially so when explanation was inserted to give trace of definition of manufacturing in SEZ Act, however I.T. Act 1961 deliberately not chosen to refer section 2(2) of SEZ Act, 2005 for defining services. In view of the same, it is clear that IT Act, 1961 has clearly excluded definition of services given in SEZ .....

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thing or providing any services. (iii) The meaning of providing service does not include trading as per the Oxford English Dictionary or Collins English Dictionary or any other dictionary. The meaning of providing services being taken as per rules 76 of SEZ rules and instruction No.4 of 2006 of Ministry of Commerce & Industry are related to operation of SEZs and permissible activities in SEZs which has a specific purpose. Moreover sec. 27 of SEZ and clearly stipulates that provisions of inco .....

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indings of the ld. CIT(A) are contained in para 4.4 of his order which reads as under: I have carefully perused the order of the AO and the submissions of the AR and the order of the Hon ble ITAT, in the case of M/s Goenka Diamond & Jewellers Ltd. for .A.Y. 2008-09. ITA No.509/JP/2011 dated 31.01.2012 wherein the identical issue came up for adjudication and decided in favour of the assessee with the specific observation that thus the word services as mentioned in section 10AA cannot be const .....

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the assessee. Since the AO has not brought any evidence or argument or case law to controvert the finding of the Hon ble ITAT Jaipur Bench in the same facts it is held that the matter of claiming of exemption u/s 10AA is covered by this finding and the appellant is allowed to claim exemption of ₹ 6,71,89,986/- u/s 10AA. 2.6 During the course of hearing the Ld. AR relies on the order of the CIT(A) and reiterated the submission made before the Ld. CIT(A), a copy of which has been placed on r .....

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avour of assessee. (i) Gitanjali Exports Corporation Ltd. Mumbai in ITA No. 6947-48/Mum/2011order dated 8.5.2013 for A.Y. 2006-07 & 2007-08 . (ii) ITO v. Midas DFS Pvt. Ltd Kolkota Bench (ITA 30/Kol/2012 for AY. 2008-09. i 2.7 The ld. DR supported the order of the AO. However, he could not controvert the fact that the identical issue has been decided earlier by the Coordinate Benches in the case of M/s Goenka Diamonds & Jewels ltd. 2.8 We have heard the rival contentions and perused the .....

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clear that the deduction u/s 10AA will be available in reset of the trading in the nature of re-export of imported good. Thus the assessee were promised that they will be eligible for deduction u/s 10AA of the Act in respect of the profit earning on trading of re-export of imported goods. The revenue has not been able to show us that such instruction was not withdrawn or the Board has issued instruction that instruction dated 24.05.2006 from the Ministry of Commerce will not be applicable for th .....

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se of Tax Recovery Officer vs. Custodian Appointed under the Special Court, 293 ITR 369 had an occasion to consider the meaning of language employed in section 13 of the Special Court Act. In section 13 of the Special Court Act, it was stated that provision of the Act shall have effect notwithstanding any thing inconsistent therewith contained in any other law for the time being in force. The Hon ble Apex Court held that there can be no manner of doubt that the provision of Special Court Act whe .....

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