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TMI Blog2016 (2) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... ena (CIT) ORDER PER SHRI VIKRAM SINGH YADAV, A.M. This appeal is filed by the Revenue against the order of CIT(A)-I, Jaipur dated 08.05.2013 wherein the Revenue has taken the following ground: Whether on the facts and in the circumstances of the case and in law, the ld. CIT(A) was justified in allowing the deduction of ₹ 6,71,89,986/- u/s 10AA of the IT Act, 1961 as the condition laid down in the section 10AA of the IT Act, 1961 for claiming the deduction are not fulfilled. 2. The relevant facts for the issue under consideration, are as follows: 2.1 During the assessment proceedings, it was observed by AO that assessee firm made re-export of imported goods amounting to ₹ 65,35,59,139/- and declared net pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition of services can be imported from SEZ Act, 2005. It is clear that for definition of manufacturing section 10AA of I.T. Act has referred to sub section 2(r) of SEZ Act but for the definition of services, I. T Act 1961 has deliberately not referred to SEZ Act, 2005. This is specially so when explanation was inserted to give trace of definition of manufacturing in SEZ Act, however I.T. Act 1961 deliberately not chosen to refer section 2(2) of SEZ Act, 2005 for defining services. In view of the same, it is clear that IT Act, 1961 has clearly excluded definition of services given in SEZ Act from its preview.. Income Tax Act, 1961 has already referred to SEZ Act for definition of manufacturing therefore section 29) of SEZ ct 2005 has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions of the AR and the order of the Hon ble ITAT, in the case of M/s Goenka Diamond Jewellers Ltd. for .A.Y. 2008-09. ITA No.509/JP/2011 dated 31.01.2012 wherein the identical issue came up for adjudication and decided in favour of the assessee with the specific observation that thus the word services as mentioned in section 10AA cannot be construed in consistently with the definition of services given in the SEZ Act. Under the SEZ Act, the trading is included in the services provided the trading is export of imported goods. We therefore, feel that the assessee is entitled to deduction u/s 10AA of the Act and therefore, the ld. CIT(A) was justified in allowing the exemption. Thus it is seen that the matter is covered by the find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ches in the case of M/s Goenka Diamonds Jewels ltd. 2.8 We have heard the rival contentions and perused the material available on record. The Coordinate Bench in case of M/s Goenka Dimonds and Jewels Ltd. vide its order dated 31/1/2012 has decided the identical issue with the same fact pattern as the case before us. The relevant finding of the Coordinate Benches are at para 2.19 and 2.20 of its order which reads as under: Though vide instruction No.1/2006 dated 24.03.2006 it was clarified that trading units can be set up in the SEZ. However, the modification was made on 2.05.2006 in which it was made clear that the deduction u/s 10AA will be available in reset of the trading in the nature of re-export of imported good. Thus the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT Vs. Vasisth Chay Vaapar Ltd. 330 ITR 440 held that when there is a provision in another enactment which contains a non obstente clause than that would override the provisions of the Income Tax Act. Thus one will have to consider the implication of section 51 of the SEZ Act. It means that anything inconsistent to the provision of the SEZ Act will not be considered. Thus the word services as mentioned in Section 10AA cannot be construed in-consistently with the definition of services given in the SEZ Act. Under the SEZ Act, the trading is included in the services provided the trading is export of imported goods. We therefore, feel that the assessee is entitled to deduction u/s 10AA of the Act and therefore, the ld. CIT(A) was justified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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