Income Tax

Deemed Exports eligibility u/s 10B-Supreme Court dismisses SLP of Income Tax Deptt.

Eligibility of deemed Exports through third party for deduction u/s 10B-Supreme Court dismisses SLP of the Income Tax Department

ABCAUS Case Law Citation:
ABCAUS 2695 (2019) (01) SC

Important Case Laws Cited/relied upon:
M/s. International Stones India Pvt. Ltd
M/s.Tata Elxsi Ltd.

The Karnataka High Court had reiterated that the assessee was entitled to deduction u/s.10B of the Act,1961 (the Act) in respect of the ‘Deemed Export’ of goods made by it through a third party or not.

In the said case the ITAT, following a previous decision, took a view that the deemed export are not covered by the definition of “export’ for the purpose of deduction u/s 10B of the Income Tax Act, 1961 (the Act).

However, the said decision relied upon by the Tribunal was reversed by the Hon’ble High Court  holding in favour of the assesses that they were entitled to deduction u/s.10B of the Act in respect of the “Deemed Export”.

The Income Tax Department had challenged the judgment of the Karnataka High Court in the Hon’ble Supreme Court.

However, the Division Bench of the Apex Court dismissed the Special Leave Petition (SLP) of the Department.

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