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TMI Blog2018 (4) TMI 1370X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 10B in so far as Section 10A provides for the location of the unit in the ‘Special Economic Zone’ [see 10A 2(c)] such locational restriction is absent in case of Section 10B, however the principle that benefit of customs and excise duty is independent of the entitlement of deduction under the Income Tax Act is applicable in the present case also. Hence, in our view, mere location of the ‘SESA Plant’ outside the EOU and customs bonded area is not a disqualification to claim deduction under Section 10B of the Act. - Decided against revenue - ITA No.715/2017 c/w ITA No.714/2017 & ITA No.716/2017 - - - Dated:- 6-4-2018 - MR. B.S. PATIL AND MR. S. SUNIL DUTT YADAV JJ. Appellants: By Sri Aravind K.V, Advocate Respondent: By S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee-Firm. 3. The EOU had started production on 23.09.2006 and accordingly deduction under Section 10B of the Act on the profits derived from the production of iron ore from the EOU for the assessment years 2009-2010, 2010-2011 and 2011-2012 was claimed. In its returns under Section 139 of the Act, the assessee firm had claimed deduction with respect to the profits derived from the export of iron ore produced in the EOU as well as non-EOU. This fact came to light to the Revenue during search wherein records revealed that the assessee was also claiming deduction with respect to production at its plant viz., M/s. SESA Goa Ltd. (hereinafter referred to as SESA plant) which was non- EOU and was outside the EOU bonded area. During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achinery is situated outside the bonded area and as the assessee is an exporter and not an importer in terms of the Notification under 54/1997 dated 3.6.1997 issued under Section 25(1) of the Customs Act which provides that custom bonding is required only where imports are contemplated for use in manufacturing/production of goods for export. iii) The export of iron ore which was mined and excavated in an area within the legal possession of a EOU but processed through a non-EOU unit would not contravene any of the conditions under Section 10B, disentitling deduction. 5. The Tribunal, on hearing the rival contentions has observed that the only controversy was with respect to the processing of iron ore which was done by the SESA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re fact that the SESA Plant is situated outside the bonded area is of no legal significance as the benefit of customs bonding is only for the limited purpose of granting benefit as regards customs and excise duty. The entitlement of deduction under the Income Tax Act is to be looked into independently and said benefit would stand or fall on the applicability of section 10 B of the Act. 9. The judgment in the case of Commissioner of Income Tax Vs. Caritor (India) Pvt. Ltd. reported in (2014) 369 ITR 463 though arises in the context of deduction under Section 10A of the Act which is different from deduction under Section 10B in so fa r as Section 10A provides for the location of the unit in the Special Economic Zone [see 10A 2(c) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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