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TMI Blog2013 (5) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... he self manufactured as well as trading in goods have been made eligible for deduction under section 10A of the Act. The above decision was rendered by the Mumbai Bench of the Tribunal in respect of deduction relating to section 10A of the Act. However, we are of the opinion that section 10A and section 10B are similar. The apprehension of the Commissioner of Income-tax (Appeals) is that if the trading receipt also is included in the eligibility under section 10B, the assessee will set up token production and start free trading. The facts in the present case are not supporting the view taken by the Commissioner of Income-tax (Appeals) . Therefore, the decision rendered in the case of T. Two International P. Ltd. even applies to section 10B. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re engaged in the business of exporting granites monumental slabs. The assessee-company claimed exemption under section 10B of the Act for unit II only which is being 100 per cent. export oriented undertaking. The Assessing Officer noticed from schedule 10 pertaining to the export sales and purchases for trading exports that the assessee-company had made outright purchase (trading) to the extent of ₹ 42,62,996 and exported (trading) the same at the cost of ₹ 44,45,403 in unit II alone. As per section 10B to claim exemption the following conditions have to be fulfilled : (a) the undertaking must be 100 per cent. export oriented undertak ing, (b) it should manufacture or produce any article or thing, and (c) it should exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Economic Zone Reinvestment Allowance Reserve Account' and utilisation are not available in section 10B . The decision cited by learned counsel for the assessee was not accepted. 6. The Commissioner of Income-tax (Appeals) further observed that a perusal of sub-section (2) of section 10B states that the manufacture or production is an essential ingredient for availing of exemption. The assessee has in its submission stated, that a reasonable interpretation would be able to see if the unit has started manufacturing or not. If that condition is satisfied nothing else should matter. The correct interpretation is that the exemption is allowed to manufactured goods and that is why manufacturing is a pre-condition. If the assessee' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of trading profits or not. The Tribunal, Mumbai Bench in the case of T. Two International P. Ltd. v. ITO [2010] 3 ITR (Trib) 353 (Mum- bai) has observed that to allow deduction under section 10A the material consideration is export of eligible goods and not whether those goods are manufactured or purchased by the assessee. Profits from both, the self manufactured as well as trading in goods have been made eligible for deduction under section 10A of the Act. The above decision was rendered by the Mumbai Bench of the Tribunal in respect of deduction relating to section 10A of the Act. However, we are of the opinion that section 10A and section 10B are similar. The apprehension of the Commissioner of Income-tax (Appeals) is that if the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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