TMI Blog2010 (7) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... derived by virtue of export made by the assessee. The exchange value based on upward or downward of the Rupee value is not in the hands of the assessee. In other words, the assessee does not determine the exchange value of the Indian Rupee. It has to be remembered but for the fact that the assessee is an export house, there was no question of earning any foreign exchange. Therefore, when the fluct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that gains on account of foreign exchange fluctuation held to have direct nexus with the export sales of the assessee and hence, is eligible for deduction under Section 10A of the Income Tax Act, 1961, is valid in law?" 2. The short question that arises for consideration is 'whether due to diminish in Rupee value, the respondent-assessee gained a higher sum in Rupee value while earning foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. Accordingly, we allow this issue in favour of the assessee and the order of the Commissioner (Appeals) is set aside." 4. In order to allow a claim under Section 10A of the Act, what all is to be seen is whether such benefit earned by the assessee was derived by virtue of export made by the assessee. The exchange value based on upward or downward of the Rupee value is not in the hands of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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