2018 (4) TMI 1370

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..... laim of deduction under Section 10B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') holding that mere processing of the iron ore in a plant and machinery located outside the bonded area will not disentitle the assessee from deduction where the iron ore was excavated from the mining area belonging to an export oriented unit. The tribunal further held that as the raw material as well as finished product both belonged to the assessee and was exported by the assessee, it could be said that there was no violation of Section 10B of the Act, disentitling the claim of the benefit of deduction. 2. The facts relevant for the purpose of appreciating the controversy at hand are as follows: The assessee is a Firm in the business of .....

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..... n of iron ore said to have been outsourced by the EOU to the non-EOU and restricted the claim to the profits derived by the EOU from its production. The aforesaid appeals came to be filed before the Commissioner of Income Tax (Appeal s)- VI, Bangalore, for the assessment years 2009-2010 2010-2011 and 2011-2012 against the orders of the Assessing Officer. The Appellate Authority confirmed the order of the Assessing Authority observing that the claim for deduction under Section 10B of the Act is not allowable in respect of production of non-EOU and consequently dismissed the appeal. 4. The said appeals were challenged before the Income Tax Appellate Tribunal, Bangalore Bench, where the assessee primarily contended as follows; i) As the enti .....

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..... y the assessee must be pursuant to excavation and processing activity of the assessee in a custom bonded area. It is further contended that as the 'production' has not been carried out in the EOU Unit, contribution to the finished product by the assessee being almost absent, deduction under Section 10B of the Income Tax Act, 1961 cannot be permitted. 7. In so far as factual aspects are concerned the authorities have clearly held that there has been outsourcing of processing of iron ore to evidence which the profit and loss Account and the Ledger account for the relevant year have been relied upon. The assertions to the contrary by the Revenue warrants no acceptance. 8. As regards the contention that the processing by 'SESA plant' which is .....

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