TMI Blog2011 (3) TMI 1802X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) was completed on 03.12.2007 at total income of ₹ 27,30,350/-. While making the assessment, the claim of deduction u/s 10B was reduced by an amount of ₹ 21,44,221/- on the ground that export proceeds to be realized in convertible foreign exchange were not received within the time prescribed under the Statute. This finding was reversed by the learned CIT(A), who mentioned that export proceeds of ₹ 36,13,485/- were received in the month of October, 2005. Therefore, the assessee was entitled to deduction on this amount keeping in view the circular of the Reserve Bank of India No.91 dated 01.04.2003 and the provision contained in section 10B(3). He also referred to the provision contained in Section 155(11A), which obliges t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by units in SEZs. However, the units in SEZs will continue to follow the GR/PP/SOFTEX export procedure outlined in Part B of Annexure to A.P.(DIR Series ) Circular No. 12 dated September 9,2000 as amended from time to time. The appellant has also received the export proceeds of ₹ 36,13,485/- in the month of October,2005. Therefore, keeping in view the RBI's Circular No. 91 dated 01.04.2003 read with section 10B(3), the appellant is eligible for deduction u/s 10B on the export proceeds realized in October, 2005 of ₹ 36,13,485/-. 'Here it may also be relevant to refer to section 155(11A) which reads as under:- Section 155 (11A): Where in the assessment for any year, the deduction under section 10A or sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment in view of section 155 (11A) so as to allow deduction u/s 10B in respect of such receipt also. Therefore, even under sub section (11A) of section 155, the AO. has to rectify the assessment order to allow the deduction u/s 10B. Thus, considering the totality of the facts and circumstances of the case, specially circular NO.91 dated 01.04.2003 of the RBI and provisions of section 155(11A) of the I.T. Act, I am of the opinion that the appellant is eligible for deduction u/s 10B on the export proceeds of ₹ 36,13,485/- and, therefore, the AO. is directed to allow deduction u/s 10B on the export proceeds realized in foreign convertible exchange of ₹ 36,13,485/- in October, 2005. 3. None attended on behalf of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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