Law:

Section:

Section 10B of the Income-tax Act, 1961 - Export oriented undertaking - Assessment year 2007-08 - Delivery of goods to a foreign buyer in India does not amount to export [In favour of revenue] The language of section 10B(3) is plain. It does not admit of any other meaning than what is conveyed by the language used therein. The benefit under section 10B(1) is available to 100 per cent EOUs only if the sale proceeds of articles or things exported out of India are received in convertible foreign exchange. Two conditions should be satisfied before the benefit under section 10B(1) is claimed. There should be export of articles or things or computer software out of India, and the sale proceeds therefor should have been received in convertible foreign exchange. One would not exclude the other nor only one condition would satisfy the eligibility criteria. The intention of the Parliament, in granting benefit to the units in free trade zones, special economic zones and EOUs, is to allow the benefit of deduction only when the articles or things or computer software are actually and factually exported out of India to a foreign country. When the profits from exports were allowed as deduction, the Parliament intended the actual export out of India of the articles or things. The intention was never to consider the delivery of goods to a foreign buyer in India as amounting to export. CASES REFERRED TO Central Coal Fields Ltd. v. State of Orissa [1992] AIR 1992 SC 1371, CIT v. Silver and Arts Palace[2001] 248 ITR 69 (Raj.), CIT v. Silver and Arts Palace [2003] 259 ITR 684 (SC), ITO v. Vaibhav Textiles [2002] 258 ITR 346 (Raj.) and Ram Babu & Sons v. Union of India [1996] 222 ITR 606 (All.). M.V. J.K. Kumar for the Appellant. A. Rajasekhar Reddy for the Respondent. JUDGMENT V.V.S. Rao, J. - This appeal under section 260A of the Income-tax Act, 1961 (the Act) is against the order dated January 31, 2011 of the Income-tax Appellate Tribunal, Hyderabad Bench "A", in I. T. A. No. 1242/H/2010. By the said order, the appeal of the assessee against the order dated February 3, 2010 of the Commissioner of Income-tax (Appeals)-IV, Hyderabad, was dismissed holding that the appellant is…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492