2019 (2) TMI 370

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....seriously erred in law and on the facts and in the circumstances of the case in Confirming the Alleged Disallowance / Denial of Deduction / Exemption claimed U/s l0AA of the Income Tax Act,1961 of Rs. 1,20,07,900/-, the Consideration in respect of Exports by the Appellant Undertaking being the Unit, of articles or things or services received in, or brought into India and having fulfilled all the conditions enumerated in Section 10AA. Your Appellant being an Entrepreneur as referred to in clause (j) of Section 2 of the Special economic Zones Act, 2005, in respect of Registered Business of Warehousing, Material Management and Inventory Control Services carried on from a Recognized Special Economic Zone (SEZ) viz. Vishakapatnam Special Economi....

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....y M/s M.I.Overseas Limited with effect from April, 2008. Therefore, having fulfilled all the conditions, it was entitled for deduction u/s 10AA. However, the same was denied on account of the fact that the said activity did not involve any export outside India in terms of explanation 1 & 2 to Section 10AA(9) of the Income Tax Act. It was also held that the expression service as defined u/s 2(z) of the SEZ Act read with Rule 76 of SEZ Rules, 2006 would mean allied services which were in relation to or incidental to manufacturing or production of an article or things. Another importance fact was that the foreign company to whom the assessee was providing services was, in turn, rendering work to Indian companies in India and was assessed to ta....

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....nce export was defined under the Income Tax Act, the meaning as ascribed therein, was only to be considered to assess the assessee's claim. 5. We have carefully heard the rival submissions and perused relevant material on record including documents placed in the paperbook & financial statements for impugned AY. It is undisputed fact that the assessee has set up unit in VSEZ for manufacturing as well as for rendering of services which is evident from approval letter dated 27/03/2007 issued by the Development Commissioner, Visakhapatnam. The assessee has got the allotment of certain land i.e. Plot Nos. A3 & A4, Phase-1, VSEZ. Subsequently, the assessee has entered into a comprehensive Agreement for Repairs & Material Management Services....