TMI Blog2019 (6) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... HELD THAT:- We are inclined to dismiss this ground of appeal of the assessee by following the judgment of the Jurisdictional High Court in the case of Electronic Controls . Discharge Systems (P) Ltd [ 2011 (7) TMI 541 - KERALA HIGH COURT] if the provisions of the Special Economic Zones Act, 2005, are brought into extend the exemption on profits derived on inter-unit sale made by industries within the Export Processing Zone, the court will be re-writing the legislation which is exactly what the Tribunal has done. In fact, the unit which purchased components from the assessee must be manufacturing final products and being a unit in the Special Economic Zone will be exporting the final product, on which that unit will get exemption on the entire profits which include the value of the components supplied by the assessee. Probably the Legislature did not want duplicity in exemption on export profit. That is why inter-unit sales in the Export Processing Zone are not treated as export within the meaning of section 10A of the Income-Tax Act, no matter such transfers are treated as exports for the purpose of Customs and Excise duty exemption. When the exemption is only on actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a procedural requirement, so much so, it cannot be a reason for exclusion of the amount from export turnover. 3) The learned Commissioner of Income Tax (Appeals) erred in excluding ₹ 1,61,62,499/- from the purview of export turnover on the ground that inter-unit sales are not treated as export within the meaning of section 10A of the Act, no matter such transfer are treated as export sales for the purpose of Customs Excise Duty exemption. 4) The learned officers ought to have understood that deemed export is a concept accepted in law and scheme of things. So long as the goods stand exported and the country earns foreign exchange, it ought to be accepted as export turnover of the appellant. 5) The consequential restriction of deduction u/s. 10B is bad in law. 6) Having regard to the various decisions of the Supreme Court on the issue, the decision of the lower authorities is bad in law. 4. The facts of the case are that the assessee filed its return of income for AY 2008-09 on 18/09/2008 declaring an income of ₹ 22,83,422/-. The assessment was completed under section 143(3) of the I. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expression competent authority means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange. Explanation 2.-The sale proceeds referred to in this sub-section shall be deemed to have been received in India where such sales proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India. 5.1 Therefore, the CIT(A) held that as per the provisions of section 10B(3) of the Act, assessee is eligible to claim deduction under section 10B only if the sale proceeds of the exports are received within six months from the end of the previous year or any further time granted by competent authority. As the action of the Assessing Officer is in accordance with the provisions of the Act, the CIT(A) dismissed the ground raised by the assessee. 6. Against this, the assessee is in appeal before us. 7. The Ld. DR relied on the order of the CIT(A). 8. We have heard the rival submissions and perused the record. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttedly, there is a Supreme Court judgment in the case of Dy. CIT vs. Metal Closures (P) Ltd. 261 Taxman 161 wherein by dismissing the SLP, the Supreme Court held as follows: -Appeal (Supreme Court)-Special leave petition Deduction under section 10B-100 per cent Export Oriented Undertaking-Altowability-[Deemed Export] of goods- Where the department/preferred SLP to appeal against the judgment of Karnataka High Court in Metal Closures (P) Ltd. v. Dy. C1T [ITA Nos. 24-25/2015 c/w ITA Nos. 22-23/2015, ITA Nos. 379-381/2016 dt. 12-6-2018]: 2019 TaxPub(DT) 297 (Karn- HC) whereby the High Court held that in the case of M/s. Tata Elxsi Ltd. v. Asstt. CIT 2015 TaxPub(DT) 5191 (Karn-HC) it was held that assesses was entitled to deduction under section 10B of the Act in respect of the [Deemed export] also and similarly following the said judgment, the issue was also decided in favour of the assessee in case of Pr. CIT v. International Stones India (P) Ltd. [ITA No. 564/2016, dt. 12-6-2018] : 2018 TaxPub(DT) 4058 (Karn-HC)], that the present assessee, who was also similarly situated, since the fact of [deemed export] made by it through a third party was not in dispute, also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ips have held that an order refusing special leave to appeal does not stand substituted in place of order under challenge. In the hue of the above discussion, it is amply vivid that the mere dismissal of SLP by the Hon'ble Supreme Court against the judgment of the Hon J K High Court in the case of Jammu Development Authority cannot be construed as having the effect of elocution of law by the Hon'ble Supreme Court on the subject against the assessee. 14.2 As rightly pointed out by the Ld. DR, dismissal of SLP by the Supreme Court cannot lay down any ratio decidendi or precedent value so as to be followed by the Tribunal. As such, we are inclined to dismiss this ground of appeal of the assessee by following the judgment of the Jurisdictional High Court in the case of Electronic Controls . Discharge Systems (P) Ltd. (245 CTR 0465) wherein it was held as under: 6. After hearing both sides and after going through the above referred provisions of the Income-Tax Act and the provisions of the Special Economic Zones Act, 2005, we are unable to uphold the order of the Tribunal because the concept of deemed export under the Special Economic Zones ..... X X X X Extracts X X X X X X X X Extracts X X X X
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