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2015 (1) TMI 394 - HC - Income TaxDeduction u/s 80HHC - Deduction u/s 80IA - Whether, the Appellate Tribunal is right in law on facts in holding that while computing deduction u/s. 80IA exchange rate difference and duty draw back should be treated to be 'derived' from the industrial undertaking - Held that:- Duty drawback receipts and DEPB benefits do not form part of the net profits of eligible industrial undertakings for the purpose of deduction u/s 80-I/80I-A/80I-B of the Act - So far as question regarding foreign exchange difference is concerned, the same is squarely governed by the decision of this Court in the case of Commissioner of Income-Tax vs. Priyanka Gems reported in [2014 (3) TMI 938 - GUJARAT HIGH COURT] wherein this Court has answered the question in favour of the assessee and held that that the foreign exchange gain arising out of the fluctuation in the rate of foreign exchange cannot be divested from the export business of the assessee and once export is made, due to variety of reasons, the remission of the export sale consideration may not be made immediately and that all foreign currencies received by the assessee need not be converted into Indian Rupees on the last date of the accounting period. - Tribunal is justified in holding that while computing deduction u/s. 80IA exchange rate difference should be treated to be 'derived' from industrial undertaking whereas the Tribunal has committed an error in holding that duty draw back should be treated as 'derived' from industrial undertaking - Decided partly in favour of Revenue.
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