TMI Blog2023 (6) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... rt . The above clarification given by the Ministry of Commerce Industries leaves no element of doubt that the activity of import of goods for the purpose of export falls within the meaning of services. Activities carried out by the assessee falls within the ambit of services , the expression used in section 10AA and the profits and gains derived from such services rendered from SEZ would be eligible for deduction u/s.10AA of the Act. As decided in Goenka Diamond Jewellers Ltd [ 2012 (3) TMI 258 - ITAT JAIPUR] word services as mentioned in Section 10AA cannot be construed in-consistently with the definition of services given in the SEZ Act. Under the SEZ act, the trading is included in the services provided the trading is export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee in respect of the profits arising out of the trading activity. 3. The appellant craves leave to amend or after any ground or add new ground which may be necessary. 3.1 The facts germane to the issue in appeal are: The assessee company is engaged in import and re-export of goods. The assessee is carrying out its trading activities from Special Economic Zone (SEZ) for Free Trade and Warehousing Zone (FTWZ) at Sai Village, Taluka Panvel, Dist. Raigarh. The assessee claimed deduction u/s. 10AA of the Income Tax Act, 1961 [ in short the Act ] in respect of profit and gains derived from export/services carried out from specified SEZ Unit. The Assessing Officer disallowed assessee s claim of deduction u/s. 10AA of the Act on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Diamond Exports vs. ITO 19(3)(4), Mumbai , ITA No.3128(MUM) of 2019. Hence, the present appeal by the Revenue. 4. Shri Kamble Minal Mohan representing the Department vehemently supported the assessment order and submitted that the assessee is importing goods and is thereafter re-exporting the same goods without any value addition. No manufacturing or production is being carried out by the assessee. No services are performed by the assessee so as to be eligible to claim the benefit of section 10AA of the Act. The ld. Departmental Representative prayed for reversing the findings of CIT(A) and upholding the assessment order. 5. Per contra, Shri Rajesh R. Shah appearing on behalf of the assessee emphatically supported the impugned ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has placed reliance in support of his submissions. In so far as the activities carried out by the assessee at SEZ they are not in dispute. The Assessing Officer has disallowed the assessee s claim of deduction u/s. 10AA of the Act on the ground that the activities of import of goods for re-export carried out by the assessee does not fall within the meaning of services , the expression used in section 10AA of the Act for being eligible to claim deduction. 7. The expression services is not defined under the provisions of the Act. Section 10AA was inserted by the SEZ Act, 2005 w.e.f.10/02/2006. Therefore, it would be appropriate to refer to the definition of services given in SEZ Act. The expression service has been defin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng retail services), educational services, environmental services, financial services, hospital services, other human health services, tourism and travel related services, recreational, cultural and sporting services, entertainment services, transport services, services auxiliary to all modes of transport, pipelines transport. Thus, from the conjoint reading of the definition of service and Rule 76 it is unambiguously clear that activity of trading falls within the meaning of services as defined under section 2(z) of SEZ Act. The letter dated 20/06/2011 from the office Development Commissioner, SEEPZ SEZ has further clarified that In terms of explanation to Rule-76 of the SEZ Rules, 2006, the expression trading for the purpose of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A of the Act and therefore, the Ld. CIT(A) was justified in allowing the exemption. Similar view has been expressed by the Tribunal in the case of Geetanjali Exports Corporation Limited. (supra) and various other decisions considered by CIT(A). 10. Ergo, in facts of the case and the provisions of SEZ Act discussed above we find no infirmity in the impugned order. The same is upheld and the appeal of Revenue is dismissed being devoid of any merit. ITA NO.944/MUM/2023-A.Y.2017-18: 11. The grounds raised by the Revenue in appeal are verbatim to the ground raised for Assessment Year 2015-16. Both sides are unanimous in stating that the facts are identical except for the quantum of deduction claimed u/s. 10AA of the Act. The re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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