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TMI Blog2014 (11) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... f) of Explanation 1 to section 115JB(2) has been amended to apply the provisions of MAT to units which are entitled to deduction under section 10A. - Decided in favour of assessee. - ITA No.5469/Mum/2012 - - - Dated:- 5-11-2014 - Shri H L Karwa, President, Shri D Karunakara Rao, AM Appellant by : Ms. Aarti Vissanji Respondent by : Mr. Asghar Zain V P O R D E R Per H L Karwa, President : This appeal filed by the assessee is directed against the order of the CIT(A)- 17, Mumbai, dated 25.07.2012, for the assessment year 2008-09. 2. The only effective ground raised by the assessee in this appeal reads as under: 1. Applicability of provisions of section 115JB of the Income Tax Act, 1961 (the Act) On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit. 4. On appeal, the CIT(A) upheld the order of the AO for the reasons stated in paragraphs 3.4 to 3.9 of his order. Hence, the assessee is in appeal before the Tribunal. 5. We have heard the rival submissions and have also perused the materials available on record. It is worthwhile to observe here that a similar issue came up for consideration before ITAT, Mumbai E Bench in the case of Genesys International Corporation Ltd. v. ACIT (2012) 80 DTR(Mumbai)23 for A.Y. 2008-09, wherein the Tribunal vide its order dated 31.10.2012, categorically held that a unit located in Speical Economic Zone (in short SEZ) is covered by sub section (6) of section 115JB irrespective of the fact that such unit is claiming deduction u/s 10A and, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t an existing SEZ unit will also be governed by Special Economic 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 01.04.2005 from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn by the Finance Act, 2011 by inserting a proviso to section 115JB(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 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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