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2015 (6) TMI 1025 - HC - Income TaxDeduction under section 80HHC - whether Tribunal was justified in law in allowing deduction to the assessee under section 80HHC of the Income-tax Act, 1961 on that position of the export sale proceeds which was not brought or received by it in India in convertible foreign exchange within the period stipulated under section 80HHC(2) of the Income-tax Act and even no extension of time was granted by the competent authority (Reserve Bank of India)? - Held that:- As seen, under the said section deduction in respect of the profit can be made if the amount is received in convertible foreign exchange within a period of six months from the end of the previous year or within such further period as the "Competent Authority may allow in this behalf". The assessee, through its banker, by letter dated October 30, 2001 had applied to the Reserve Bank of India for extension of time till December 1, 2001. The Reserve Bank of India in its reply dated December 28, 2001 advised that as the date, that is, December 1, 2001, till which extension was sought for, had already expired, the assessee should apply for further extension. Incidentally the amount was received on November 26, 2001. The question is whether the letter dated December 28, 2001 by the Reserve Bank of India can be treated to be an order allowing extension of time. Since "allow" means permission, a positive act, and as in a case of grant of permission it should be in an unambiguous language and in explicit terms, the letter of the Reserve Bank of India requesting the assessee to apply for further extension cannot be taken as an approval in any manner whatsoever. The finding of the Tribunal that "deduction to the exporter should not be denied merely on the hyper technical view" cannot be accepted. Therefore, the question is answered in the negative and in favour of the Revenue and against the assessee.
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