TMI Blog2017 (1) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... 29 of the paper book. The lower authorities have not brought any defect in the bill, payment of the bill and the FIRC in support of the payment. Hence in our considered view the accounting entries cannot form the basis for denying the exemptions on account of warehousing charges to the assessee under section 10AA of the Act. Similarly the exemption was denied on the consultancy charges due to non-production of the necessary details. However the assessee has produced the bills along with FIRC before the ld. CIT(A) on which remand report was also called for which are placed on the record and no defect has been reported by the learned DR regarding this. In view of above we’re inclined to reverse the order of lower authorities. Hence this ground of appeal of the assessee is allowed. - ITA No. 2666/Kol /2013 - - - Dated:- 18-1-2017 - Shri N. V. Vasudevan, Judicial Member And Shri Waseem Ahmed, Accountant Member By Appellant : Shri Subash Agarwal, Advocate By Respondent : None ORDER Per Waseem Ahmed, Accountant Member This appeal by the assessee is against the order of Commissioner of Income Tax (Appeals)-XXIV, Kolkata dated 28.12.2011. Assessment was framed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as claimed by assessee. The AO further observed for the warehousing income that the goods should be stored by assessee in its godown on behalf of some party and the same should be released at the instruction of the party. In the instant case, the assessee company has shown purchase of goods and thereafter purchased return in the books of accounts. The assessee on such transactions of purchase and purchase return has shown warehousing charges income in its books. So it was clear that assessee did not provide warehousing services. 4.2 Besides the above, assessee did not furnish any documentary evidence that assessee was engaged in clearing and forwarding agency business or storing the goods as agent of the party. Similarly, the bank releasing certificate was also not furnished in order to ascertain the nature of the payment received by assessee. Similarly, assessee failed to furnish any documentary evidence in support of consultancy income shown by assessee in the year under consideration. In view of the above, the deduction claimed by assessee u/s. 10AA of the Act was disallowed and added back to the income of assessee. 5. Aggrieved, assessee preferred an appeal before Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the lower authorities as well as judgments relied upon before us. From the foregoing discussion we find that the assessee has shown income from the trading activity, warehouse and consultancy services. The assessee in respect to the aforesaid incomes claimed exemption under section 10AA of the Act. The AO denied the exemption under section 10AA of the Act for all the aforesaid incomes. The AO observed that trading activity is not entitled for exemption under section 10AA of the Act. Similarly necessary documents were not furnished in support of warehousing and consultancy income. Similarly the ld. CIT(A) confirmed the order of the AO on the reasons already adverted in the Para above and the same is not being repeated for the sake of brevity. The ld. CIT(A) also observed that the provisions of SEZ, 2005 cannot override the specific provisions of Income Tax Act ,1961. The crux of the controversy before us is whether assessee in the present case is entitled for exemption under section 10AA of the Act with regard to trading and warehousing consultancy income. 7.1 First we take up the issue of trading income of the assessee. Admittedly the assessee is engaged in the import and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. 7.2 From the reading of the provisions it is clear that the provisions as specified under The Special Economic Zones Act, 2005 would have overriding effect on the Income Tax Act. The same view has also been held in the own case of the assessee by the Hon ble ITAT in ITA No.30/Kol/2012 for the AY 2008-09 vide order dated 13/11/2013. The relevant extract of the order is reproduced below:- 3. We have heard the rival submissions and perused the relevant material on record. The first objection of the Assessing Officer was that the benefit of Section 10AA of the Act is lost when the assessee is engaged solely in trading activities. It has been noticed above that Section 10AA(1) allows benefits, inter alia, for the provisions of any services by an eligible enterprise. Obviously, the erstwhile partnership firm i.e., M/s Midas International was permitted to do trading by the Competent authority. The firm got converted into assessee company and continued the same business with the prior permission from the Competent authority under the SEZ Act. the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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