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TMI Blog2014 (2) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Income Tax Act. Disjunctive expression ‘or’ has been used by the legislature between the words unit and Special Economic Zone. Implication can only be that there is no condition that a unit has to function in an SEZ for claiming the benefit of sub-section (6). Since sub-section 6 of section 115JB of the Act was inserted by Special Economic Zone, 2005, the meaning of the term ‘Unit’ given in the said Act will, in our opinion, be relevant since such word is not defined in the Income Tax Act. The necessity to have a physical location inside an SEZ is not essential for applying the exclusionary clause of sub-section 6 of section 115JB of the Act. One of the grounds taken by Revenue says that assessee has not claimed any exemption unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 115JB of the Act upto and inclusive of assessment year 2007-08. On account of the amendments made to the said section with effect from assessment year 2008-09, Assessing Officer put the assessee on notice as to why it should not be taxed under section 115JB of the Act. Reply of the assessee was that it came within the purview of sub-section 6 of section 115JB of the Act and, therefore, was not liable to minimum alternative tax. As per assessee, sub-section 6 of section 115JB was inserted by Special Economic Zone Act, 2005 w.e.f. 10th February, 2006. Assessee also relied on definition of a Unit under SEZ Act, 2005. As per the assessee, section 2 (zc) of the said Act clearly implied that even an existing unit established prior to the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Processing Zone (in short EPZ ), Software Technology Park (in short STP ) and Special Economic Zone (in short SCZ ) on a similar footing, giving similar support to each of them. As per assessee, all the Units which were enjoying export benefits including those in STP were covered by sub-section 6 of section 115JB of the Act. Section 10AA of the Act which was for Units in SEZ, as per assessee, applied only to the remaining span of years left over for relief under section 10A of the Act. As per the assessee, it was not necessary that a Unit should be physically placed in an SEZ for claiming the exclusionary benefit of sub-section 6 of section 115JB of the Act. 5. Ld. CIT(Appeals) was appreciative of the above contentions. According to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply to the income accrued or arising on or after the 1st day of April, 2005 from any business carried on, or services rendered by an entrepreneur or a Developer, in a Unit or Special Economic Zones, as the case may be . A reading of the above sub-section would clearly show that section 115JB will not apply to a business carried on by an entrepreneur or a Developer in a Unit or Special Economic Zone. The Sub-section does not say that the Unit has to be functioning from a Special Economic Zone. The word Unit has not been defined under the Income Tax Act. Disjunctive expression or has been used by the legislature between the words unit and Special Economic Zone. Implication can only be that there is no condition that a unit has to fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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