TaxTMI 
TaxTMI 
2018 (6) TMI 1877
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.... the case and in law, Ld. CIT(A) was justified in allowing appeal of the assessee without appreciating that the decision of the ITAT, Jaipur Bench in the case of DCIT Vs. Goenka Diamonds and Jewellers Ltd. in ITA. No. 509/JP/2011 dtd. 31.01.2012 has not been accepted by the Department at Jaipur and appeal to the Hon'ble Rajasthan High Court has been preferred and also in the case of M/s. Gitanjali Export Corp Ltd. in ITA No. 6948/M/2011 is not accepted and an appeal to the Hon'ble High Court of Mumbai has been preferred.? 2. Whether on the facts and in the circumstances of the case and in law, Ld. CIT(A) failed to appreciate that the three words "manufacturing "produce or provide any services used in section 10AA should be interpre....
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....ership in the firm. They were also directors of Auro Gold Jewellery Pvt. Ltd. In the year under consideration, the assessee has undertaken trading of goods to the tune of Rs. 11,05,35,640/- and raised the claim u/s 10AA(8) of the I.T. Act, 1961. The AO was of the view that the assessee was doing of work of trading which nowhere facts and controversy export of manufactured goods and export of service. Therefore, notice was given and after getting reply the claim of assessee was declined and the said amount was added to the income of the assessee. The total income of the assessee was assessed to the tune of Rs. 4,10,25,943/-. Thereafter, the assessee filed an appeal before the CIT(A) who allowed the claim of the assessee, therefore, the reven....
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....proposal referred to in sub-section (3), grant a letter grant a letter of approval of the proposal referred to in sub-section (3), grant a letter of approval to the person concerned to set up a unit and undertake such operations which the Development Commissioner may authorize and every such operation so authorized shall be mentioned in the letter of approval. IT is noticed from the record that the appellant was initially granted letter of approval dated 17.112005 by the Development Commissioner, Surat SEZ Surat 10 carry out authorized operations in respect of trading of gold in any form including jewellery studded as well as plain and manufacturing of gold medallion. 4.3.2 it is pertinent to note that Instruction No,] issued vide ....
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....of imported goods." It is noticed from the record that the appellant obtained revised approval from the Development Commissioner, Surat SEZ vide letter No. SSEZ/G-13/314/2005-6/982 dated 23.03.2009 to carry on authorized operations in respect of trading of rough or polished diamonds at Us unit No. 366 in the SEZ at Sachin, Surat. In other words, trading and export of rough or polished diamonds was approved as "authorized operations" of the appellant by the competent authority under the SEZ Act, one of the conditions stipulated m the aforesaid letter of approval was that The benefit u/s. 10AA of the income-tax Act, 1961 shall exclude trading other than trading in the nature of re-export of imported goods only. Accordingly, the appel....
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....ion 53 of (he SEZ Act the provisions of that Act have been given overriding effect over the provisions of any other law for the time being in force including those of the Act. Section 27 of the SEZ Act also provides that the provisions of Income-tax Act, 1961, as in force for the time being. shall apply to or in relation to the developer or entrepreneur for carrying on the authorized 033 era Iions in a Special Economic Zone or unit subject the modifications specified in the Second Schedule. As the word 'services' is found to have been specifically defined in Rule 76 of the SEZ Rules, it has to be understood in that sense only. Therefore, the A.G/s view that the word 'services has to be construed by its genera! or natural meaning....
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....wed." 5. On appraisal of the above said order, we noticed that the CIT(A) has discussed the each and every aspects of the business of the assessee. The trading activity as well as the services of the assessee has duly been discussed and defined in accordance with the relevant provision. The CIT(A) has passed the order on the basis of the decision of Hon'ble ITAT in the case of M/s. Goenka Diamond and Jewellers Ltd 146 TTJ (Jpr) 68. It is specifically held that the income earned from trading involving reexport/ imported goods is eligible for deduction u/s 10AA of the Act. The CIT(A) has also placed reliance upon the order passed in case of Addl. CIT Vs. Gitanjali Exports Corporation Ltd. in ITA. No. 6781 & 6783/M/2011 Mumbai Bench dated 0....