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TMI Blog2019 (6) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is dismissed. Exclusion of exports made through sister concern from export turn over - HELD THAT:- We are inclined to dismiss this ground of appeal of the assessee by following the judgment of the Jurisdictional High Court in the case of Electronic Controls . Discharge Systems (P) Ltd [ 2011 (7) TMI 541 - KERALA HIGH COURT] if the provisions of the Special Economic Zones Act, 2005, are brought into extend the exemption on profits derived on inter-unit sale made by industries within the Export Processing Zone, the court will be re-writing the legislation which is exactly what the Tribunal has done. In fact, the unit which purchased components from the assessee must be manufacturing final products and being a unit in the Special Economic Zone will be exporting the final product, on which that unit will get exemption on the entire profits which include the value of the components supplied by the assessee. Probably the Legislature did not want duplicity in exemption on export profit. That is why inter-unit sales in the Export Processing Zone are not treated as export within the meaning of section 10A of the Income-Tax Act, no matter such transfers are treated as exports for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in excluding ₹ 1,61,62,499/- from the purview of 'export turnover' on the ground that inter-unit sales are not treated as export within the meaning of section 10A of the Act, no matter such transfer are treated as export sales for the purpose of Customs & Excise Duty exemption. 4) The learned officers ought to have understood that deemed export is a concept accepted in law and scheme of things. So long as the goods stand exported and the country earns foreign exchange, it ought to be accepted as export turnover of the appellant. 5) The consequential restriction of deduction u/s. 10B is bad in law. 6) Having regard to the various decisions of the Supreme Court on the issue, the decision of the lower authorities is bad in law. 4. The facts of the case are that the assessee filed its return of income for AY 2008-09 on 18/09/2008 declaring an income of ₹ 22,83,422/-. The assessment was completed under section 143(3) of the I.T. Act by accepting the income returned. On subsequent verification of records, the Assessing Officer found that the assessee had claimed deduction under section 10B of the Act on the exports made through the third party and also on the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been received in India where such sales proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India. 5.1 Therefore, the CIT(A) held that as per the provisions of section 10B(3) of the Act, assessee is eligible to claim deduction under section 10B only if the sale proceeds of the exports are received within six months from the end of the previous year or any further time granted by competent authority. As the action of the Assessing Officer is in accordance with the provisions of the Act, the CIT(A) dismissed the ground raised by the assessee. 6. Against this, the assessee is in appeal before us. 7. The Ld. DR relied on the order of the CIT(A). 8. We have heard the rival submissions and perused the record. As rightly pointed out by the CIT(A), the sale proceeds of exports in convertible foreign exchange were not brought to India within six months from the end of the previous year or any further time granted by competent authority in terms of section 10B of the Act. Hence, we do not find any infirmity in the order of the CIT(A) in rejecting the above ground taken by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 381/2016 dt. 12-6-2018]: 2019 TaxPub(DT) 297 (Karn- HC) whereby the High Court held that in the case of M/s. Tata Elxsi Ltd. v. Asstt. CIT 2015 TaxPub(DT) 5191 (Karn-HC) it was held that assesses was entitled to deduction under section 10B of the Act in respect of the [Deemed export] also and similarly following the said judgment, the issue was also decided in favour of the assessee in case of Pr. CIT v. International Stones India (P) Ltd. [ITA No. 564/2016, dt. 12-6-2018] : 2018 TaxPub(DT) 4058 (Karn-HC)], that the present assessee, who was also similarly situated, since the fact of [deemed export] made by it through a third party was not in dispute, also deserves to get the same relief and therefore, the present appeal filed by assessee deserves to be allowed, the Supreme Court condoned delay and dismissed the SLP. - Department preferred SLP to appeal against the judgment of Karnataka High Court in Metal Closures (P) Ltd. v. Dy. CIT [ITA Nos. 24-25/2015 a/w ITA Nos. 22-23/2015, ITA Nos. 379-381/2016, dt. 12-6- 2018] : 2019 TaxPub(DT) 297 (Karn-HC)] whereby the High Court held that in the case of M/s. Tata Elxsi Ltd v. Asstt. CIT 2015 TaxPub(DT) 5191 (Karn-HC) it was held that ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratio decidendi or precedent value so as to be followed by the Tribunal. As such, we are inclined to dismiss this ground of appeal of the assessee by following the judgment of the Jurisdictional High Court in the case of Electronic Controls &. Discharge Systems (P) Ltd. (245 CTR 0465) wherein it was held as under: "6. After hearing both sides and after going through the above referred provisions of the Income-Tax Act and the provisions of the Special Economic Zones Act, 2005, we are unable to uphold the order of the Tribunal because the concept of deemed export under the Special Economic Zones Act is not incorporated in the scheme of exemption under section 10A of the Income-Tax Act and it is the settled position that the Income-Tax Act is a self-contained code and the validity or correctness of the assessment has to be considered with reference to statutory provisions. It is not as if the Special Economic Zones Act, 2005 or the Foreign Exchange Regulation Act or the Foreign Exchange Management Act are not referred to in the Income-Tax Act. The Income-Tax Act refers to several statutes in different places and wherever required, provisions of such statutes are incorporated in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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