IN INCOME-TAX APPELLATE TRIBUNAL B BENCH, CHENNAI Before Shri A. Mohan Alankamony, Accountant Member & Shri Duvvuru RL Reddy, Judicial Member I T.A. No. 1289/Mds/2016 Assessment Year :2009-10 M/s. TMX Precision Tooling (India) Assistant Commissioner of Pvt. Ltd., 565, Vivekananda Street, Vs. Income Tax, Circle 1, Gandhi Nagar, Vellore 632 006. Vellore. [PAN:AABCT3556C] ( Appellant) ( Respondent) Appellant by : Shri A. Mahesh, C.A. Respondent by : Shri Supriyo Pal, JCIT Date of hearing : 28.07.2016 Date of Pronounce ment : 07.10.2016 O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: This appeal filed by assessee is directed against order of ld. Commissioner of Income Tax (Appeals) 13, Chennai, dated 05.02.2016 relevant to assessment year 2009-10. main issued raised in appeal of assessee is that ld. CIT(A) has erred in confirming computation of income under section 115JB of Income Tax Act, 1961 [ Act in short] at .8,39,289/-. 2 I.T.A. No.1289/M/16 2. Brief facts of case are that assessee is engaged in business of manufacture, sale and export of precision components and parts. assessee has filed its return of income for assessment year 2009-10 admitting total income at .34,020/-. return filed by assessee was processed under section 143(1) of Act. Thereafter, case of assessee was selected for scrutiny and notice under section 143(2) of Act was issued on assessee on 27.09.2010 and served on 30.09.2010. Subsequently, notice under section 142(1) of Act was also issued to assessee calling for certain details, books of accounts and other documents. In response thereto, assessee filed details and on verification of records, Assessing Officer has noticed that assessee ha computed book profit under section 115JB of Act at .2,85,790/-. In arriving at book profit, assessee has increased net profit by expenditure incurred on income exempted under section 10A of Act, as per clause (f) of explanation to sub-section 2 and has deducted export sales to which provisions of section 10A applies. However, clause (f) and clause (ii) mentioned above are amended w.e.f. 01.04.2008 by Finance Act, 2007. Hence, by holding that addition and deduction to and from net profit made by assessee are not warranted, Assessing Officer has taken net profit per profit and loss account for purpose of book profit under section 115JB of Act and completed assessment under section 143(3) of Act. 3 I.T.A. No.1289/M/16 3. assessee carried matter in appeal before ld. CIT(A). Before ld. CIT(A), assessee has filed detailed written submissions and after considering same and also by considering various case law relied on by assessee, ld. CIT(A) dismissed appeal filed by assessee. 4. On being aggrieved, assessee is in appeal before Tribunal and ld. Counsel for assessee has vehemently contended that ld. CIT(A) has not adjudicated issued raised before him with regard to exemption under section 115JB(6) of Act and pleaded that suitable directions may be given to ld. CIT(A). On other hand, ld. DR supported order passed by authorities below. 5. We have heard both sides, perused materials available on record and gone through orders of authorities below. It is not under dispute that assessee company is Special Economic Zone unit and by accepting same, Assessing Officer has also allowed exemption under section 10A of Act to assessee. In return filed by assessee, assessee has omitted to claim exemption under section 115JB(6) of Act. Being SEZ unit, assessee is exempt from 115JB by virtue of sub- section (6). provision of section 115JB(6) of Act reads as under: (6) provisions of this section shall not apply to income accrued or arising on or after 1st day of April, 2005 from any 4 I.T.A. No.1289/M/16 business carried on, or service rendered, by entrepreneur or Developer, in Unit or Special Economic Zone, as case may be:] 6. above provision of sub-section (6) to section 115JB of Act has been inserted by Special Economic Zones Act, 2005, w.e.f. 10.02.2006. In case of assessee, assessment year under consideration is 2009-10 and therefore, section 115JB of Act would not apply to case of assessee. With regard to above, assessee has raised specific grounds before ld. CIT(A), though ld. CIT(A) has reproduced grounds raised by assessee in his appellate order, but not considered same. In view of provisions of sub-section (6) to section 115JB of Act, since assessee, being SEZ unit, no sub-section under section 115JB of Act shall apply to assess book profits under section 115JB of Act. By circular No. 14[XL-35] dated 11.04.1955, CBDT has given clear instructions to Department that Department should not take advantage of assessee s ignorance to collect more tax out of him than is legitimately due from him. It I one of their duties to assist taxpayer in every reasonable way, particularly in matter of claiming and securing reliefs and in this regard, Officers should take initiative in guiding taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. Under above facts and circumstances, we set aside order of ld. CIT(A) and remit matter back to file of ld. CIT(A) to consider grounds raised by assessee before him 5 I.T.A. No.1289/M/16 during appellate proceedings and pass appropriate order in accordance with law by keeping in mind decision of Mumbai Benches of Tribunal in case of Lily Jewellery Pvt. Ltd. v. ITO in I.T.A. No. 5469/Mum/2012 dated 05.11.2014. 7. In result, appeal filed by assessee is allowed for statistical purposes. Order pronounced on 07th October, 2016 at Chennai. Sd/- Sd/- (A. MOHAN ALANKAMONY) (DUVVURU RL REDDY) ACCOUNTANT MEMBER JUDICIAL MEMBER Chennai, Dated, 07.10.2016 Vm/- Copy to: 1. Appellant, 2. Respondent, 3. CIT(A), 4. CIT, 5. DR & 6. GF. M/s. TMX Precision Tooling (India) Pvt. Ltd. v. Assistant Commissioner of Income Tax, Circle 1, Vellore