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SC: Allows Revenue’s plea, HC to reexamine if SEZ’s trading activity constitutes ‘service’ u/s 10AA

SC sets-aside Andhra Pradesh HC judgement dismissing Revenue’s appeal; Observes that the question raised before HC was whether trading activity carried on by assessee’s SEZ unit amounts to ‘service’ eligible for tax holiday u/s  10AA; Further observes that HC did not consider Revenue’s submission in this regard that definition of ‘services’ as per SEZ Rules cannot be relied upon in absence of such provision u/s 10AA of the Income Tax Act and it merely remarked that “the Tribunal has held it to be a ‘service’ and that it is a question of fact.”; SC clarifies that whether trading activity carried by assessee constitutes ‘service’ within the meaning of Sec 10AA would be a question of law and not a question of fact; Holds that HC was in error in not entertaining  Revenue’s plea and dismissing its appeal by labelling it as ‘question of fact’, remands matter back to HC:SC
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