TMI Blog2015 (3) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... authority. Accordingly, the order of the AO is not prejudicial to the interests of the Revenue nor is erroneous. As the present appeal passed by the AO u/s 143(3) r.w.s. 263 become infructuous and hence appeal of the Revenue is dismissed. - ITA No. 24/Hyd/2014 - - - Dated:- 31-12-2014 - Shri P. M. Jagtap And Smt. Asha Vijayaraghavan,JJ. For the Petitioner : Smt. G. Aparna Rao,(DR) For the Respondent : Shri P.V.S.S. Prasad, CA ORDER Per Asha Vijayaraghavan , J.M. This is an appeal filed by the Revenue against the order of the ld CIT (A)-III Hyderabad, dated 11.10.2013 for the A.Y 2006- 07, u/s 143(3) r.w.s. 263 of the I.T. Act. 2. Brief facts of the case are that the assessee company filed its return of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uctible from the taxable income subject to the condition that the sale proceeds of articles or things or computer software exported out of India are received in, or brought into India by the assessee 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(RBI/authorised dealer) may allow in this behalf. 4. During the A.Y 2006-07, export proceeds of ₹ 15.00 crores were realized and brought into India within the 12 months period from the date of export as provided by competent authority i.e. RBI but beyond the six months period from the previous year. 5.a. An order u/s 263 dated 29-12-2011 was issued to the assessee company by CIT(IV) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act. But an assessee has to make an application to the Reserve Bank of India for claiming the relaxation under the provisions of section 10A(3) of the Income Tax Act. The assessee cannot rely on the general circular of the Reserve Bank of India. As the assessee did not produce permission from competent authority for bringing the foreign exchange into India beyond 6 months from the date of export, the Assessing Officer should not have allowed the deduction u/s. 10A on the sum of ₹ 15 crores. Thus, the action of the Assessing Officer in allowing the deduction u/s. 10A is erroneous and is prejudicial to the interests of revenue. The assessment order passed by the Assessing Officer u/s. 143(3) is hereby set aside . Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of the Income Tax Act for bringing the foreign exchange into India beyond six months from the date of export, the sale proceeds of ₹ 15 crores which were not received within six months is not eligible for exemption u/s 10A of the Act. Hence the deduction u/s 10A was recalculated after reducing the amount of ₹ 15 crores from export turnover. However, all the other additions that were made to the total income in the original assessment order passed u/s 143(3) on 24.12.2009 holds good for all purposes. Accordingly, he held that the export turnover is to be taken at ₹ 13,74,63,680/- (i.e. ₹ 28,74,63,680 - ₹ 15,00,00,000) and accordingly deduction u/s 10A is to be recomputed. 8. Aggrieved the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 10A(3) permitting extension of the period. 2. The ld CIT (A) erred in law in holding that the circular issued by RBI under FEMA is valid under Income Tax Act, though there is no provision in law to apply such circular mutatis mutandis to the Income Tax Act . 3. The ld CIT (A) erred on facts and in law in granting deduction to an amount of US$ 246921/- though the same was brought into India after one year from the date of export . 10. The ld DR relied on the orders of the AO. The ld Counsel for the assessee relied on the order of the ITAT Hyderabad in the assessee s own case in ITA No.516/Hyd/2013 u/s 263 of the I.T. Act, 1961 dated 27.02.2012 [Sic 27.11.2013] for A.Y 2006-07 in Para 12 of its order observed as under: In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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