Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2006 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (4) TMI 340 - AT - Income TaxDeductions u/s 80HHC - Computation of Export Turnover - Include the exchange rate gain difference in the export turnover for arriving at the allowable deduction u/s 80HHC - HELD THAT:- If there is any exchange rate gain difference again, the same will also relate back and required to be included in the "export turnover" in the year in which goods were exported. In view of this, in case the exchange rate gain difference of amount pertain to exports made in earlier years received within six months or extended period as provided in clause (a) of sub-section (2) of section 80HHC is required to be included in the "Export Turnover" in the year in which the goods were exported. We accordingly direct the assessee to furnish details/bifurcation of exchange rate difference and also direct the Assessing Officer to include the same in "Export Turnover" in the relevant assessment years if the same is qualified for inclusion in the "Export Turnover" as per clause (a) of sub-section (2) of section 80HHC of the Income-tax Act, 1961. A plain reading of the provision of clause (a) of sub-section (2) of section 80HHC, makes it clear that once the competent authority has extended the time, in a case where it is necessary, or, where the sale proceeds have been received within a period of six months from the end of the previous year, or within extended period then such sale proceeds are directly relatable to the exports made in earlier year and no further inquiry is necessary. The Legislature in its wisdom has taken into consideration the fact that in the case of exports made, sale proceeds are not necessarily realizable immediately within the accounting period in which exports have been made. As a corollary, by the time such sale proceeds are received within the prescribed time, by virtue of exchange rate difference there might be a situation where a larger amount is received than the amount as reflected in the shipping bill. On a reading of entire scheme of allowing deduction u/s 80HHC, it is clear that deduction is to be based upon the actual export sales proceeds realized in Indian Rupees. In the result, the appeal of the revenue is treated as allowed to the extent indicated above.
|