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TMI Blog2013 (11) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is engaged in the business of import and export of tobacco products and trading of all types of FMCG products, alcoholic and non-alcoholic beverages. Exemption u/s 10AA was claimed in respect of the profit from the eligible business of trading. On being called upon to explain the justification for the exemption, the assessee stated that Letter of permission / approval was issued by the Development Commissioner of Falta Special Economic Zone (SEZ for short) on 25-04-2005 allowing trading of specified "liquor, cigarettes, FMCG product" to the erstwhile partnership firm, which was succeeded by the present assessee, a private limited company. This letter of approval was further amended vide letter dated 05-08-2005 permitting trading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee's submissions and restored the benefit of Section 10AA of the Act. The Revenue is in appeal against the granting of relief under the said Section. 3. We have heard the rival submissions and perused the relevant material on record. The first objection of the Assessing Officer was that the benefit of Section 10AA of the Act is lost when the assessee is engaged solely in `trading' activities. It has been noticed above that Section 10AA (1) allows benefits, inter alia, for the provisions of any `services' by an eligible enterprise. Obviously, the erstwhile partnership firm i.e., M/s. Midas International was permitted to do `trading' by the Competent authority. The firm got converted into assessee-company and continued the same business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of machinery or plant to a new business which was previously used for any purpose. Suffice to say, that the assesssee-company is successor of the partnership firm which was originally approved by the competent authority under the SEZ Act to do this business. The said firm claimed exemption u/s. 10AA of the Act for two years before the partnership firm got converted into assessee- company. It has been brought to our notice that the assessment of the firm was completed u/s. 143(3) of the Act in which benefit of exemption under this provisions was allowed. The granting of such exemption in earlier years implies that the AO got satisfied with the requisite conditions as per section 10AA(4). Since the assessee-company is nothing but the conver ..... X X X X Extracts X X X X X X X X Extracts X X X X
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