|
The Tax Publishers2019 TaxPub(DT) 0719 (Del-Trib) INCOME TAX ACT, 1961
Section 10AA
Where section 51(1) as a non obstante clause and within the definition under section 2(m) of the Special Economic Zones Act, 2005 exports includes providing services or supplying goods from one unit to another in the same or different SEZ, therefore, assessee was entitled to exemption under section 10AA.
|
Exemption under section 10AA - Sale made by one SEZ unit to another SEZ unit - Eligibility -
Assessee-company was a 100% BOU, situated in SEZ was engaged in the business of manufacturing of scaffoldings and there export directly. Besides this, assessee was selling its manufactured product within zones as zonal sales. Assessee commenced its activity after 1-4-2005, accordingly claimed benefits under section 10AA. However, the same was denied by AO on account of fact that the said activity did not involve any export outside India. Held: Decision of High Court in case of CIT(A) v. Vaisth Chay Vyapar Ltd. (2011) 330 ITR 440 (Del.) held that there is a provision in another enactment which contains non obstante clause then that would override the provision of the Income Tax Act. Section 51(1) as a non obstante clause and within the definition under section 2(m) of the Special Economic Zones Act, 2005 exports includes providing services or supplying goods from one unit to another in the same or different SEZ. Accordingly, assessee was entitled to exemption under section 10AA.
Followed:CIT v. Vasisth Chay Vaapar Ltd. (2011) 330 ITR 440 (Del-HC) : 2011 TaxPub(DT) 0663 (Del-HC) DCIT v. Goenka Diamond & Jewellers Ltd. (2012) 146 TTJ (Jp) 68 : (2012) 19 taxmann.com 91 (Jp) : 2012 TaxPub(DT) 1981 (Jp-Trib) Relied: TRO v. Custodian Appointed Under The Special Court & Ors. (2007) 293 ITR 369 (SC) : 2007 TaxPub(DT) 1457 (SC) and M/s. Ossian Exports v. ITO 2017 TaxPub(DT) 0494 (Mum-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 36(1)(vii)
SUBSCRIBE FOR FULL CONTENT |