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TMI Blog2020 (7) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is a process of 'manufacture' as defined under the SEZ Act, which takes place in the SEZ unit and also pointed out that the AO himself has accepted that the assessee's unit, processed the raw materials by removing 10 to 20% impurities. Cost comparison of the semi finished product with that of the raw material was also referred to and it was also pointed out that the AO could not establish that the assessee has suppressed the purchase cost of semi-finished goods in order to claim higher deduction under Section 10AA of the Act. Certificate issued by the Assistant Development Officer was accepted on the ground that the revenue could not prove the same to be not genuine. Therefore, the tribunal sustained the factual f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant/revenue and Mr.S.Raj Makesh, learned counsel appearing for the respondent / assessee. 4. The assessee filed their return of income for the Assessment Year under consideration 2013-14 on 27.09.2013, admitting total income of ₹ 3,16,61,350/-. The assessment was selected for scrutiny by issuance of notice under Section 143[2] dated 02.09.2014 and the Assessing Officer rejected the claim of the assessee, who claimed deduction under Section 10AA of the Act, on the ground that the raw material and the finished product are one and the same and there was no manufacturing activity having taken place in the SEZ unit of the assessee. 5. The assessee filed an appeal before the Commissioner of Income Tax (Appeals)-III, Madurai, (th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te'. Further the Assessing Officer opined that a minor activity of sieving to separate dust particles only is carried out in the SEZ units and hence, it does not amount to manufacturing. 9. Before the CIT(A), the assessee had explained in detail about the process adopted by them. A certificate has been given by the Assistant Development Officer dated 28.03.2013, certifying that the assessee's unit has commenced production on 29.02.2012. Further, the assessee has stated that the export invoice was submitted to the Assessing Officer during the assessment procedure. However, the same was ignored and was not taken into consideration. 10. The CIT(A) after considering the factual position accepted the submission of the assessee that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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