NIHO CONSTRUCTION LTD.,NEW DELHI vs. ITO, WARD- 18(2), NEW DELHI

ITA 3676/DEL/2018Status: DisposedITAT Delhi28 April 2025AY 2012-13Bench: SHRI MAHAVIR SINGH, HON'BLE (Vice President), SHRI MANISH AGARWAL, HON'BLE (Accountant Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, holding that foreign exchange fluctuation gains are eligible for Section 10A exemption. It also ruled that Section 40(a)(ia) is not applicable to share buy-back payments as they are not claimed as expenditure, and even a lower TDS deduction satisfies the compliance requirement.

What were the facts?

The assessee, a software export company, claimed deduction under Section 10A on an 'Arbitration Award' and foreign exchange fluctuation gains. The Assessing Officer (AO) denied exemption on the award, treating it as not software sale, and also denied exemption on currency gains. Additionally, the AO disallowed a portion of share buy-back payments due to alleged short TDS deduction.

What were the issues?

Whether foreign exchange fluctuation gains are eligible for Section 10A exemption and whether Section 40(a)(ia) applies to share buy-back payments with short TDS deduction.

Which sections of the Income-tax Act were involved?

Section 10A,Section 40(a)(ia),Section 195

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Cases cited in this judgment(6)Show list

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Income Tax Appellate Tribunal, DELHI “E” BENCH: NEW DELHI

Before: SHRI SUDHIR KUMAR & SHRI MANISH AGARWAL

For Appellant: Shri Pravin Rawal, CIT DR
For Respondent: Dr. Rakesh Gutpa, Adv, Shri Saksham Agarwal, CA, Shri Somil Agarwal, Adv. &, Shri Deepesh Garg, Adv
Hearing: 26.06.2025Pronounced: 12.09.2025

PER MANISH AGARWAL, AM : The captioned appeal is filed by the Revenue against the order dated 15.03.2011 passed by Ld. Commissioner of Income Tax (Appeal)-XVI, New Delhi [“CIT(A)”, in short] passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 31.12.2010 passed u/s 143(3) of the Act pertaining to Assessment Year 2007-08. 2. Brief facts of the case are that assessee is a company and e- filed its return of income on 30.08.2007, declaring total income of INR 1,45,48,453/-. The said return was revised on 20.08.2008, declaring the same income as was declared the return

The order continues below.

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