TaxTMI 
TaxTMI 
2017 (8) TMI 562
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.... 10A of the Income Tax Act, 1961 amounting to Rs. 32,80,743/- arbitrarily without appreciating the submission made and evidences adduced thus the action of the Ld. CIT(A) being unjust and therefore deserves to be hold bad in law and the assessee be allowed the exemption u/s 10A as claimed. 1.2 That the Ld. CIT(A) has further erred in ignoring the fact that the assessee has duly fulfilled all the conditions necessary of in sec. 10A of Income tax Act, 1961 for claiming exemption more particularly when the assessee has started manufacturing activity in the year under appeal, thus the exemption u/s 10A being legitimately available to the assessee deserves to be allowed. 1.3 That the Ld. CIT(A) has further erred in observing that no new ma....
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....tones. The assessee has claimed exemption U/s 10A of the Act, which was denied by the Assessing Officer and the ld. CIT(A) has not granted any relief to the assessee. The ld AR of the assessee further submitted that up to the assessment year 2009-10, the assessee was engaged in the trading of precious and semi-precious stone in the name and style of M/s Kamaldeep Jewellers and the business was carried out from 877, White house, Third Floor, Ganga Mata Ki Gali, Gopal jika Rasta, Jaipur. For the year under consideration, the assessee discontinued his trading business and started a new business activity of manufacturing gold and silver jewellery embedded with precious and semi-precious stones in SEZ. The assessee also started cutting, polishin....
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....ial production at its unit. This fact itself establishes that the assessee was doing business of manufacturing of silver and gold jewellery embedded with precious and semi precious stones from its SEZ unit located in SEZ area. The other allegation of the lower authorities is that the assessee has purchased finished goods from local parties and only did the polishing before exporting, is also factually incorrect. He submitted that the purchase invoices placed in paper book shows that the assessee has purchased unmounted jewellery and after adding precious and semi precious stones, the final jewellery manufactured which had been exported. Further the information gathered by the Assessing Officer at the back of the assessee from the supplier i....
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....us and semi-precious stones. Assessee did cutting and polishing of rough precious and semi-precious stones and after that the polishing and finishing of studded/ mounted metal castings (finished goods), these finished goods are exported from the SEZ unit. He also placed reliance on the decision of the Hon'ble Kerala High Court in the case of Gimar Industries Vs. CIT [230 CTR 401) referring the decision of the Hon'ble Apex Court in the case of CIT Vs. Gwalior Rayons Silk Manufacturing Co. Ltd [196 ITR 149], wherein the Hon'ble High Court has held that provisions of sec 10A should be construed reasonably and in favour of the assessee. The Hon'ble Kerala High Court also held that definition of the term 'manufacture' from the EXIM policy an....
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....e sold and this fact has been supported by the statement of the suppliers. Since the assessee was purchasing goods from these persons, therefore, there was no requirement of opportunity to cross examine the same was of any help. He further submitted that the machinery purchases was of a smaller amount, therefore, there appears to be no manufacturing activity carried out by the assessee. He prayed to sustain the order of the authorities below. 5. I have heard the rival contentions of both the parties, perused the material available on the record and also gone through the orders of the authorities below. I have also perused the paper book submitted by the assessee. The assessee was deriving income from export of jewellery and precious and se....
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....s an invoice from Eminenet Gems Co., 102, Gurukripa Complex, 2581, Telepara, Chaura Rasta, Jaipur dated 08/5/2009. At page No. 40 of the paper book, which is a purchase bill from Shree Radha Govind Jewellers, F-50, Radha Govind Complex, Maniram Ji Ki Kothi Ka Rasta, Ramganj Bazar, Jaipur dated 28/12/2009 is for purchase of rough tourmaline. At page 41 of the paper book, which is a bill of Siddharth International, 877, 111rd floor, White House, Ganga Mata Ki Gali, Gopal Ji Ka Rasta, Jaipur for purchase of silver casting mounting dated 09/12/2009. At page 42 of the paper book, which is a purchase bill of Ganesh Impex 890, G-T, J.K. Enclave, Ganga Mata Ki Gali, Gopal Ji Ka Rasta, Choura Rasta, Jaipur, which shows that the assessee had purchase....