TaxTMI 
TaxTMI 
TaxTMI 
2020 (10) TMI 301
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....f this Court vide order dated 20.03.2015 on the following substantial question of law: (i) Whether the Tribunal is correct in sustaining the order of the Respondent in denying the benefit of deduction u/s 10B of the Act in the computation of taxable total income on the wrong interpretation of as well as on the misreading of the said provisions especially the sub-section (3)? (ii) Whether the Tribunal is correct in sustaining the order of the Respondent in denying the benefit of deduction u/s 10B of the Act in the computation of taxable total income on the misconstruction of the facts of the case thereby establishing perversity in the impugned order? (iii) Whether the Appellate Tribunal is correct in confirming the disallowance of the ....
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....re not received in convertible foreign exchange by the assessee and dismissed the appeal preferred by the assessee. The assessee thereupon filed an appeal before the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal' for short). The Tribunal by order dated 11.04.2014 inter alia held that assessee was only a supporting manufacturer and deduction under Section 10B of the Act is not available to the supporting manufacturer. Accordingly, the appeal preferred by the assessee was dismissed. In the aforesaid factual background, this appeal has been filed. 4. Learned counsel for the assessee submitted that the Tribunal failed to appreciate the fact that the claim of the assessee for deduction under Section 10B of the ....
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....pute. It is also submitted that merely having a contract with foreign enterprise and merely earning foreign exchange does not ipso facto make an assessee eligible for deduction under Section 10B of the Act. It is also submitted that an incentive provision like Section 10B of the Act has to be interpreted strictly and the burden of proving its applicability is on the assessee and in case, there is any ambiguity in the provision, the benefit has to be extended in favour of the revenue. In support of aforesaid submission, reliance has been placed on decision of the Supreme Court in 'RAMNATH & CO. VS. COMMISSIONER OF INCOME-TAX', (2020) 116 TAXMANN.COM 885 (SC). 6. We have considered the submissions made by learned counsel for the parties and ....
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.... exported out of India are received in, or brought into, India by the assessee in convertible foreign exchange, within a period of six months from the end of the Previous year or, within such further period as the competent authority may allow in this behalf. 7. Section 10A and 10B of the Act are pari materia provisions. However, difference is with regard to nature of the unit. Section 10A deals with Free Trade Zone (FTZ) unit whereas, Section 10B deals with 100% export oriented unit. Section 10A of the Act covers newly established undertaking in Free Trade Zones whereas, Section 10B deals with newly established 100% export oriented undertakings. Section 10A of the Act was introduced to give effect to EXIM policy of the Central Government.....
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....n a supply is made from DTA to STP, it does not satisfy the requirements of export as defined under the Customs Act. However, for the purposes of EXIM policy it is treated as deemed export and therefore, Section 10A of the Act was introduced to give effect to EXIM policy, the supplies made from one STP to another STP have to be treated as deemed export, as clause 6.19 specifically provides for export to status holder. Thus, in order to be eligible for exemption from Income Tax, the exports should earn foreign exchange and it does not matter whether the undertaking should personally export goods manufactured / software developed by it outside the country. It may export out of India by itself or through any other STP unit. It has further been....