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TMI Blog2020 (10) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... EOU/EHTP/STP/BTP unit may export goods manufactured / software developed by it through another exporter or any other EOU/EHTP/STP/SEZ unit subject to the conditions mentioned. In the instant case, admittedly, the assessee is a manufacturing unit and is 100% export oriented unit as has been found by the Tribunal in para 3 of the order. The assessee has manufactured precision components and has exported the same through Toyota Tsusho P. Ltd., which had received the export proceeds in convertible foreign currency. Therefore, the assessee was entitled to the benefit of deduction under Section 10B of the Act. Substantial questions of law framed by this court are answered in favour of the assessee and against the revenue. The orders passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disallowance of the deduction u/s 10B of the Act overlooking the principles laid down by the Supreme Court in the decision reported in 223 ITR 271 and the principles laid down by the Co-ordinate Bench rendered in the case of M/s Granite Mart P Ltd.,?. 2. Facts leading to filing of the appeal briefly stated are that the assessee is a company engaged in the business, manufacture and exports of automotive components. The assessee filed the return of income for the Assessment Year 2009-10 declaring total income of ₹ 4,25,531/- and an amount of ₹ 1,57,69,992/- was shown as income under the Minimum Alternative Tax (MAT) regime. The return of income was selected for scrutiny and the Assessing Officer on 30.10.2011 passed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee for deduction under Section 10B of the Act in computation of total taxable income for the Assessment Year 2009-10 was legally sustainable especially in view of disclaimer certificate issued by the recipient viz., M/s Toyota Tsusho India Pvt. Ltd. It is further submitted that the assessee being 100% export oriented unit is entitled to deduction under Section 10B of the Act in respect of deemed export of goods made by it to a third party. It is also submitted that in order to eligible for exemption under Section 10B of the Act, it is not necessary that undertaking should personally export goods, manufacture /software developed by it outside the country and it may export the same through any other STP unit. In support of aforesaid submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submissions made by learned counsel for the parties and have perused the record. Before proceeding further, it is apposite to take note of relevant extract of Section 10B(1) to (3) of the Act, which read as under: '10B. (1) Subject to the provisions of this section, any profits and gains derived by an assessee from a hundred per cent export-oriented undertaking (hereafter in this section referred to as the undertaking) to which this section applies shall not be included in the total Income of the assessee. (2) This section applies to any undertaking which fulfils all the following conditions, namely:- (i) it manufactures or produces any article or thing; (ii) it is not formed by the splitting up, or the reconstructi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0A of the Act was introduced to give effect to EXIM policy of the Central Government. Paragraph 6.10 of the aforesaid policy deals with exchange through others and provides that EOU/EHTP/STP/BTP unit may export goods manufactured / software developed by it through another exporter or any other EOU/EHTP/STP/SEZ unit subject to the conditions mentioned in paragraph 6.19 of Handbook. Paragraph 6.19 of the policy reads as under: 6.19 An EOU/EHTP/STP/BTP unit may export goods manufactured /software developed by it through other exporter or any other EOU/EHTP/STP/SEZ/BTP unit subject to condition that: (a) Goods shall be produced in EOU/SHTP/STP/BTP unit concerned. (b) Level of NFE or any other conditions relating to imports and exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he country. It may export out of India by itself or through any other STP unit. It has further been held that once it is shown that goods manufactured by the assessee have been exported out of India either by the assessee or by another STP unit and the foreign exchange is directly attributable to such export, then provisions of Section 10A of the Act is attracted and such exported is entitled to the benefit of deduction of profits and gains derived from such export from payment of tax. Even if the assessee does not directly export the material outside the country and supplies the same through another STP unit, which exports the same and receives the foreign exchange has to be held entitled to benefit of deduction. The aforesaid decision was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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