ITAT allows deduction u/s 10AA of Income Tax  Act in respect of profits derived by Unit from re-export of goods imported [Read Order]

The Mumbai bench of Income Tax Appellate Tribunal (ITAT) allowed  deduction  claimed under Section 10AA of Income Tax  Act, 1961 in respect of profits derived by  the Unit from re-export of goods imported.

The Assessee Bytescale Technologies Pvt.Ltd. a private limited company engaged, inter alia, in the business of trading of the computer hardware, related maintenance services, renting of goods etc. Assessment Year 2017-2018 the assessee filed a return of income after claiming exemption under Section 10AA of the Income Tax Act.

Accordingly, the assessor’s case was selected for scrutiny. During the assessment proceedings, the Assessing Officer noted that Assessee had a trading and service unit in the sector specified Special Economic Zone (SEZ) and Free Trade and Warehousing Zone (FTWZ).

It was noted by the Assessing Officer(AO)that the Assessee had carried out re-export of imported goods through the Unit and had claimed deduction under Section 10AA of the Act in respect of the profits derived from such export.

However the AO denied the exemption claimed under Section 10AA of the Income Tax Act in respect of profits derived by the Unit from re-export of goods imported.

Aggrieved by the order the assessee filed an appeal before the CIT(A) who allowed  appeal. Therefore  the revenue filed another appeal before the tribunal

During the adjudication the bench observed that  the  identical facts and circumstances prevailing in Assessment Years 2015-16 and 2017-18, the Tribunal has accepted the reasoning given by the Assessee and allowed deduction of INR 2,32,19,514/- as claimed by the Assessee under Section 10AA of the Act in respect of profits derived by the Unit from re-export of goods imported.

After reviewing the facts the ITAT bench of Rifaur Rahman, (Accountant Member) and Rahul Chaudhary, (Judicial Member) allowed  deduction  claimed under Section 10AA of Income Tax  Act, 1961 in respect of profits derived by  the Unit from re-export of goods imported. Rajesh Shah ,counsel appeared for the assessee and Ashok Kumar Ambastha ,counsel appeared for the revenue.

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