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TMI Blog2015 (10) TMI 2103X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on its business through a unit in Software Technology Park ('STP'), which was entitled for the claim of tax holiday U/s. 10A of the Income Tax Act [Act]. During the year, assessee's 100% revenue came from export of these services. 3. During the year under consideration, the assessee raised an invoice on 31 March 2010 for a value of USD 3,21,352 equivalent to Rs. 1,48,72,171 [Invoice number ACT/2009-10/006] for the services rendered in the month of March 2010. In compliance with the Foreign Exchange Regulation, assessee submitted a declaration of the software exports in a 'Software Export Declaration ('SOFTEX') Form' with the STPI authorities. 4. The STPI authorities vide a letter dated 6th May 2010 provided expo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of the Act. There is no dispute with reference to receipt of foreign exchange pertaining to the invoice raised on 31-03-10 as assessee received advance and adjusted the sale proceeds from the amount received earlier. The only dispute is with reference to treatment of such value as pertaining to next year on the basis of Softex form submitted. The view canvassed by AO and supported by CIT(A) is not according to provisions or rules of IT Act. 9. Clause (iv) of Explanation 2 to Section 10A defines 'export turnover' as follows: 'export turnover' means the consideration in respect of export by the undertaking of articles or things or computer software received in, or brought into. India by the assessee in convertible f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orter of services. The Section provides as follows: "7. Export of goods and services. - (1) Every exporter of goods shall- (a) furnish to the Reserve Bank or to such other authority a declaration in such form and in such manner as may be specified, containing true and correct material particulars, including the amount representing the full export value or, if the full export value of the goods is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions, expects to receive on the sale of the goods in a market outside India; (b) furnish to the Reserve Bank such other information as may be required by the Reserve Bankfor the purpose of ensuring the realization of the export p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... designated official shall forward the original directly to the nearest office of 'the Reserve Bank and return the duplicate to the exporter. The triplicate shall be retained by the designated official for record. D. Submission of duplicate declaration forms to the Reserve Bank On realisation of the export proceeds, the authorised dealer shall, after due certification, submit the duplicate of the GR/SDF, PP or as the case may be, SOFTEX form to the nearest office of the Reserve Bank." 12. On perusal of above regulations, it is amply clear that the furnishing of the SOFTEX Form and certification of the said form by STPI is a postfacto procedure prescribed by the Reserve Bank of India to ensure timely and appropriate collection of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be supported on the reason that if assessee has not exported the goods as claimed then, the total turnover also should not include the about amount. AO cannot exclude a part of the turnover only from export turnover while including the same in the total turnover. He should have excluded the same on the same reasoning which he has adopted for excluding the above invoice from the export turnover. This was not done for the simple reason that AO's intention seems to be to restrict deduction U/s. 10A. Therefore, action of the AO cannot be justified at all. Since we have already adjudicated that the invoice of 31-03-2010 has to be considered as part of export turnover of the year, there is no need to adjudicate on this contention. The pri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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