sez units continues to be exempt from mat

7/31/2019 SEZ Units Continues to Be Exempt From MAT

1/23

/(*$/ 83'$7(6

- $ . 6 &R'HOLYHULQJ 3HUIHFWLRQContact : [email protected] +91-98718-57758, 99997-49980Visit us at : www.facebook.com/jaksandco

November 11, 2012

6 115 -% 6(= XQLWV FRQWLQXH WR EH H[HPSW IURP 0$

Genesys International Corpn. Ltd vs. ACIT (ITAT Mumbai)

The assessee had two undertakings, one of which was a SEZ unit and theother which was a STPI unit. Both units were eligible for deduction u/s 10A.

By the Special Economic Zone Act, 2005, s. 10AA was inserted w.e.f.10.2.2006 to provide deduction in respect of units established in SEZs. Bythe same Act, sub-sec (6) was inserted in s. 115JB to provide that the profits

of an SEZ unit would not be liable to MAT. By the Finance Act, 2007,clause (f) to explanation (1) to s. 115JB (2) was amended w.e.f. 1.4.2008VR DV WR GHOHWH WKH ZRUGV sections 10A or 10B WKRXJK VXE-sec (6) of s.115JB was retained. The AO & CIT(A) held that the effect of the deletionof the reference to s. 10A & 10B in s. 115JB meant that the units which wereeligible for s. 10A & 10B deduction were no longer exempt from s. 115JBand only units which were eligible for s. 10AA deduction would be exemptfrom s. 115JB.

On appeal by the assessee, HELD allowing the appeal:

6 115 -% GRHV QRW UHIHU WR HLWKHU V10$ RU V10$$ EXWVLPSO\ SURYLGHV WKDW WKH 0$7 SURYLVLRQV VKDOO QRLQFRPH DULVLQJ IURP DQ\ EXVLQHVV FDUULHG RQ LQORFDWHG LQ D 6(= &RQVHTXHQWO\ GHVSLWH WKH I

DPHQGPHQW ZDV PDGH LQ FODXVH I RI ([SODQDWLRQ115 -% WR SURYLGH WKDW 0$7 VKDOO DSSO\ WR XQLWIRU V10$ RU10% D XQLW ZKLFK LV VLWXDWHG LQ D 6(=FRQWLQXH WR EH H[HPSW IURP 0$7 E\ YLUWXH RI V115 -%


2/23

,1 7+( ,1&20( 7$; $33(//$7( 75,%81$/080%$, %(1&+ ( %(1&+

%()25( 6+5, % 5 0,77$/ -8',&,$/ 0(0%(5 $1'6+5, 5$-(1'5$ $&&2817$17 0(0%(5

,7$ 1R 0XP $VVHVVPHQW


3/23



4/23



5/23



6/23



7/23



8/23



9/23



10/23



11/23



12/23



13/23

,1 7+( ,1&20( 7$; $33(//$7( 75,%81$/080%$, %(1&+ ( %(1&+

%()25( 6+5, % 5 0,77$/ -8',&,$/ 0(0%(5 $1'6+5, 5$-(1'5$ $&&2817$17 0(0%(5



14/23



15/23



16/23



17/23



18/23



19/23



20/23



21/23



22/23



23/23


sez units continues to be exempt from mat

Documents