TMI Blog2017 (12) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... t the time when the amount is remitted. The receipt would be on account of the export made and therefore, the fluctuation thereof must also be said to arise out of the export business. Merely because of fluctuation in the international currencies, the income does not get divested of the character of income from export business. The Tribunal, therefore, did not commit any error in deleting the addition made on account of fluctuation in foreign exchange rates from the deduction under section 10B of the Act. - Tax Appeal No. 879 of 2017 - - - Dated:- 29-11-2017 - MS. HARSHA DEVANI AND MR. A.S. SUPEHIA, JJ. For The Appellant : Mr Bhatt, Sr. Advocate with Mrs Mauna M Bhatt, Advocate ORAL ORDER ( PER : HONOURABLE MS.JUSTICE HA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Commissioner (Appeals). Being aggrieved, the revenue has filed the present appeal. 4. Mr. M.R. Bhatt, Senior Advocate, learned counsel for the appellant submitted that the income derived on account of fluctuation in the exchange rate cannot be said to be derived from export of articles or things as provided in section 10B of the Act and hence, the Tribunal has erred in allowing such deduction under section 10B of the Act. 5. In the opinion of this court, the controversy involved in the present case is no longer res integra inasmuch as this court in Commissioner of Income-tax v. Priyanka Gems , [2014] 367 ITR 575 (Guj), has, in the context of the provisions of section 80HHC of the Act, held that the foreign exchange gain a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the export business. Mere period of time and the vagaries of rate fluctuation in international currencies cannot divest the income from the character of the income from the assessee s export business. The court, accordingly, turned down the revenue s contention that the income cannot be said to be derived from the export business. 6. Thus, what is held in the above decision is that the income or loss in case of fluctuation in the exchange rate of foreign currency arises out of the export business of the assessee and does not change the character of the income from the assessee s export business. 7. The above view of the court finds support in the decision of the Supreme Court in Oil and Natural Gas Corporation Ltd. v. Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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