V K JEWELLERY,MUMBAI vs. DCIT- 17(1), MUMBAI

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ITA 3478/MUM/2025Status: DisposedITAT Mumbai30 September 2025AY 2013-14Bench: Smt. Kavitha Rajagopal (Judicial Member), Shri Omkareshwar Chidara ( (Accountant Member)6 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the time limit for realization of export proceeds is not a specified date for calculating the Section 10AA deduction. The issue was remitted to the AO for verification of details, similar to a previous order.

What were the facts?

The appellant claimed deduction under Section 10AA of the Income Tax Act for foreign exchange sale proceeds not received within the Return of Income filing time for AY 2013-14. The AO restricted the exemption to the extent forex was received within that time, and the CIT(A) dismissed the appeal.

What were the issues?

Whether the time limit for realization of export proceeds is a bar for claiming deduction under Section 10AA of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 10AA,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Mumbai “F” Bench, Mumbai.

Before: Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM)

For Appellant: Ms. Kavitha Kaushik
Pronounced: 30/09/2025
1.

In this case, the only issue to be adjudicated is whether appellant is entitled to the deduction under section 10AA of the Income Tax Act on the foreign exchange sale proceeds which was not received by the time the Return of Income was filed for A.Y. 2013-14.

2.

The Ld. AO restricted the exemption claimed under section 10AA of the Act to the extent the forex is received in India within the time, the Return of Income was filed.

3. Aggrieved by the Order of Ld. AO, the appellant filed an appeal with Ld. CIT(A) and this first appellate authority dismissed the appeal of appellant stating the appellant has not submitted the details of dates of receipt of forex into India.

4.

Further aggrieved by the Order of Ld. CIT(A), the appellant filed an appeal with the following grounds of appeal :

2 1. On facts and in law, the Learned Commissioner of Income Tax-Appeals had erred in not allowing deduction u/s. 10AA in respect of the exports of Rs. 3,06,35,586/-. Under the facts and circumstances of the matter, the deduction u/s. 10AA ought to have been allowed.

2. On facts and in law, the Learned Commissioner of Income Tax-Appeals had erred in not appreciating that for the purpose of calculating deduction u/s. 10AA, the time limit for realisation of export proceeds is not a specified date. Under the facts and circumstances of the matter, the deduction u/s. 10AA ought to have been allowed accordingly.

3.

The Appellant craves leave to add, alter, vary, omit, substitute or amend the above grounds of appeal, at any time before or at, the time of hearing of the appeal, so as to enable the Hon'ble Income Tax Appellate Tribunal to decide this appeal according to law.

5.

During the course of hearing before ITAT, the Ld. AR of the appellant has mentioned that a part of the remaining forex was received subsequently i.e., by 9.7.2013 and part of the forex was settled against imports from parties submitted the relevant details. It was also submitted that in the earlier year, in appellant’s own case, in similar circumstances vide order dated 26.8.2024 the ITAT has remitted the issue for verification by Ld. AO because the details furnished before the ITAT now were not available before the AO and they were filed for the first time before ITAT. Since the issue being same, the issue is remitted to the file of the Ld. AO with a direction to verify the details and pass an Order afresh giving an opportunity to the appellant.

6.

The appeal of appellant is allowed for statistical purposes.

Order pronounced in the open Court on 30/09/2025.

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