9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 1468 - HC - Income TaxEntitlement to deduction u/s.10B - Deemed Export of goods made during the period in question through a third party - Held that - Division Bench of this Court in the case of Tata Elxsi 2015 (10) TMI 634 - KARNATAKA HIGH COURT reversed the order of the learned Tribunal and held in favour of the assessee that assessee were entitled to deduction u/s.10B of the Act in respect of the Deemed Export also and similarly following the said judgment, we have also taken a view in favour of the appellant-assessee M/s.International Stones India Pvt. Ltd., that the appellant-assessee is entitled to the benefit of deduction u/s.10B of the Act, we find that the present appellant- assessee M/s.Metal Closures Pvt. Ltd., who is also similarly situated, since the fact of Deemed Export made by it through a third party is not in dispute, also deserves to get the same relief and therefore, the present appeals filed by assessee deserve to be allowed.
Issues:
Interpretation of deduction u/s.10B of the Income Tax Act, 1961 for 'Deemed Export' made through a third party. Analysis: The judgment addressed the issue of whether appellants-assessees are entitled to deduction u/s.10B of the Act for 'Deemed Export' of goods made through a third party. The ITAT had ruled against the assessees, following precedents set in other cases. However, the Division Bench overturned the decision in a similar case, allowing the deduction for 'Deemed Export.' The Court, in line with the Division Bench's decision, held that 'Deemed Export' falls within the scope of 'Export Turnover' for deduction u/s.10B. The judgment emphasized that the purpose of such deductions is to encourage exports and foreign currency inflow. It rejected the Revenue's argument to exclude 'Deemed Exports' from the deduction. The Court also noted that there was no evidence of double benefit claimed by the assessees for the same transaction, reinforcing the eligibility for deduction. The judgment quoted the Division Bench's decision in M/s.Tata Elxsi's case, highlighting that 'Deemed Export' should be considered within the ambit of 'Export Turnover.' It emphasized the absence of restrictive language in the relevant provisions to exclude 'Deemed Export' from deductions. The Court reasoned that a harmonious reading of the Act, coupled with the Exim Policy, supports the inclusion of 'Deemed Export' in the deduction provisions. It further stated that the Revenue failed to prove any double benefit claimed by the assessees, strengthening the assessees' entitlement to the deduction. Ultimately, the judgment concluded that the issue raised by the Revenue was decisively settled by the Division Bench's precedent, leading to the dismissal of the Revenue's appeals and the allowance of the assessees' appeals. In conclusion, the judgment allowed the appeals filed by the appellants-assessees, answering the substantial question of law in favor of the assessees and against the Revenue. The decision was based on the interpretation that 'Deemed Export' qualifies for deduction u/s.10B of the Income Tax Act, 1961, aligning with the Division Bench's precedent and the legislative intent to promote exports and foreign currency earnings.
|
