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2014 (1) TMI 1828 - AT - Income TaxValidity of the disallowance of the deduction u/s.10A - assessee relying on Master Circular No. 10/2011-12 (dated 01.07.2011/PB pgs.19-23), which clarifies that no specific time limit has been prescribed in respect of units in SEZs for realization and repartition of the export proceeds - Held that:- Law does not provide an inflexible condition in the matter; leaving it to the competent authority, the RBI, whose decision, besides being binding on the Revenue, would presumably only be with regard to and on an assessment of the facts and circumstances of the case, apart from being consistent with any policy guideline it may have framed in the matter, also having regard to any other law, if any, that may have a bearing or which impinges thereon. Once, therefore, the RBI has clarified that it has not stipulated any time period for the realization of the sale proceeds for the SEZ units, as the assessee, it can only be considered as having allowed an indefinite time period for the same. Consequently, it cannot be said that the condition of section 10A(3) is not satisfied. The objection of the Revenue is, in our view, not valid. The non-stipulation of any time frame by the RBI for the realization and repatriation of the export proceeds for the units located in SEZs does not per se lead to any conflict or inconsistency between the same and the provisions of the Act. Tax implication may though arise where the sale proceeds are either received otherwise than in convertible foreign exchange or, though received as so, is not brought into India inasmuch as sec. 10A(3) gets attracted. These aspects, however, do not arise for consideration in the facts of the present case. - Decided against revenue
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