TMI Blog2015 (6) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... om the end of the previous year or within such further period as the "Competent Authority may allow in this behalf". The assessee, through its banker, by letter dated October 30, 2001 had applied to the Reserve Bank of India for extension of time till December 1, 2001. The Reserve Bank of India in its reply dated December 28, 2001 advised that as the date, that is, December 1, 2001, till which extension was sought for, had already expired, the assessee should apply for further extension. Incidentally the amount was received on November 26, 2001. The question is whether the letter dated December 28, 2001 by the Reserve Bank of India can be treated to be an order allowing extension of time. Since "allow" means permission, a positive act, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. During the relevant assessment year, i.e., 2001-02, the Assessing Officer found that the assessee had received payments in foreign currency amounting to ₹ 10,70,793, beyond the due date as specified under section 80HHC(2)(a). The Assessing Officer sought clarification as to whether the competent authority had extended the time for receiving the foreign exchange beyond the period of six months. The assessee submitted that since the letter praying for extension of the time for receiving the foreign exchange up to December 1, 2001, was not rejected, the Assessing Officer was requested to allow the deduction. However, the contention of the assessee was rejected and the deduction under section 80HHC was disallowed. 4. Aggriev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and if the money has not been received till date then the exporter should be advised to apply for further extension. When the assessee received this letter from the Reserve Bank of India dated December 28, 2001, it had already received the payment, therefore, it did not apply for any further extension. In the course of assessment, the Assessing Officer took a technical view of the entire matter and concluded that the Reserve Bank of India did not give any clear expressive extension of time and, therefore, the assessee firm was not eligible for deduction on the amount of ₹ 10,70,793 which was received on November 26, 2001. It is apparent from the letter of the Reserve Bank of India that neither there was denial nor there was clear appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manner prescribed, the Assessing Officer shall amend the order of assessment so as to allow the deduction under section 80HHC in respect of such income which is brought into India and the provision of section 154 shall so far as may, apply thereto and the period of four years shall be reckoned from the end of the previous year in which such income is so received or brought into India. 7. In view of the above, we are of the considered view that pro visions of section 80HHC granting deduction to the exporter should not be denied merely on the hyper-technical view that amount was received marginally belated, when the assessee has already applied for extension of time and there was no denial by the RBI for such extension. However, the RBI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is received 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 may allow in this behalf . The assessee, through its banker, by letter dated October 30, 2001 had applied to the Reserve Bank of India for extension of time till December 1, 2001. The Reserve Bank of India in its reply dated December 28, 2001 advised that as the date, that is, December 1, 2001, till which extension was sought for, had already expired, the assessee should apply for further extension. Incidentally the amount was received on November 26, 2001. The question is whether the letter dated December 28, 2001 by the Reserve Bank of India can be treated to be an order all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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