9911796707
TMI Blog2016 (1) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... ni Taneja, AM For the Appellant : Shri Goli Srinivas Rao For the Respondent : Shri Ashok Suthar ORDER Per Saktijit Dey This is an appeal by the Department against the order dated 20th January 2004, passed by the learned Commissioner (Appeals)-16, Mumbai, for the assessment year 2010-11. The effective grounds raised by the Department are as under:- 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the AO to exclude the income of SEZ unit while computing Book Profit u/s115JB of the IT Act ignoring the amendment by Finance Act, 2007 w.e.f. 01.04. 2008 whereby the words 10A and lOB have been omitted from Explanation 1(f) and (ii) of section 115JB of the Act, thereby bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 8,94,49,275, under the normal provisions. The assessee also declared book profit of ₹ 23,16,65,577 under section 115JB. During the assessment proceedings, the Assessing Officer found that assessee while computing the book profit has reduced the profit from its SEZ Unit. He, therefore, called upon the assessee to justify the same. While doing so, he also observed that in the assessment year 2009-10, assessee's explanation that book profit under section 115JB will not include the profits of SEZ unit was rejected. Though, the assessee in its reply submitted that the Tribunal in assessment years 2008-09 and 2009-10, has accepted assessee's claim that book profit under section 115JB will not include profits of SEZ Unit b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Zones Act, 2005. Therefore, we are of the considered view that the benefits which are to be provided to the newly established unit in SEZ as per section 10AA of the Act will also be available to the existing units in SEZ. Moreover, section 4(1) of SEZ Act provides that an existing SEZ unit shall be deemed to have been notified and established in accordance with provisions of SEZ Act and the provisions of Special Economic Zones Act shall apply to such existing SEZ units. It is also observed that by the SEZ Act, sub-section (6) to section 115JB was also inserted providing that provisions of section 115JB shall not apply to the income accrued or arisen on or after 1.4.2005 from any business carried on, or services rendered, by an entreprene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (6) of the Act, which reads as under: Section 15JB(6) .. Provided that the provisions of this sub-section shall cease to have effect in respect of an previous year relevant to the assessment year commencing on or after the 1st day of April, 2012. 22. Hence, we hold that authorities below were not justified to include the book profit in respect of SEZ unit at Mumbai of the assessee while computing book profit u/s.115JB of the Act for assessment year 2008-09. Therefore, we reverse the orders of authorities below by holding that income relating to SEZ unit at Mumbai is to be excluded while computing book profit u/s.115JB of the Act for assessment year 2008-09. Hence, Ground No.4 of appeal taken by the assessee for assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
