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SEZ units continue to be exempt from MAT
Case Law Details
- Case Name
- Genesys International Corpn. Ltd Vs. ACIT (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2008-09
- Courts
- All ITAT, ITAT Mumbai
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An existing SEZ unit will be governed by Special Economic 2ones Act, 2005. Therefore, we are of the considered view that the benefits which are to be provided to the newly established unit in SEZ as per section 10AA of the Act will also be available to the existing units in SEZ. Moreover, section 4(1) of SEZ Act provides that an existing SEZ unit shall be deemed to have been notified and established in accordance with provisions of SEZ Act and the provisions of Special Economic 2ones Act shall apply to such existing SEZ units. It is also observed that by the SEZ Act, sub-section (6) to secti...
As per the provisions of subsection 6 of section 115JB, the benefits given to an unit of SEZ has been withdrawn by Finance Act 2011 by inserting a proviso to the section 115JB(6).
then on or after 01-04-2012 the units of SEZ are not eligible to get the benefit of exclusion of profit from SEZ operation from calculation of book profit though entitled to get benefit from section 10AA. that means on or after 01-04-2012 SEZ profits are subject to MAT application.
Indirectly the SEZ unit is not getting tax exemption benefit as each and every year the unit will have to pay tax as per MAT provisions. then what is the benefit of putting a unit in SEZ if not entitled to get tax exemptions. is this the intention of legislature ? pls suggest.