Assessee, a 100 per cent EOU, was engaged in business of manufacture and export. The Assessing Officer allowed deduction for only direct exports and disallowed sale made through third parties i.e. export houses and inter-unit transfers . The parties who have exported have not claimed any exemption and the assessee had furnished report of accountant in Form No. 56G as per rule 16E . Appellate Authorities have affirmed the order of the Assessing Officer . On appeal allowing the appeal the Court held that tha assessee was entitled to benefit of deduction under section 10B in respect of export done by third party export houses and inter-unit transfers. (AY. 2005-06 to 2009-10)
Granite Mart Ltd. v. ITO (2020) 193 DTR 231 / 315 CTR 714 (Karn.)(HC)
S. 10B : Export oriented undertakings – Deemed export -Export undertaken through third party who had exported goods to foreign country and had fetched foreign currency for India would still remain deemed export in hands of assessee- Entitle to deduction .[S.10A, Form No 56G , Rule 16E ]