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Income Tax Appellate Tribunal, “ C ” BENCH, AHMEDABAD
Before: SHRI S.S. GODARA & SHRI PRADIP KUMAR KEDIA
आदेश / O R D E R PER PRADIP KUMAR KEDIA, AM: The captioned appeal by the Revenue is directed against the order of the Commissioner of Income Tax(Appeals)-XIV, Ahmedabad [CIT(A) in short] dated 05/08/2014 for the Assessment Year (AY) 2011-12.
ITA No. 3086/Ahd/2014 DCIT vs. M/s.Shree Ambica Polymer Pvt.Ltd. Asst.Year – 2011-12 - 2 -
The assessee in the instant case has inter alia claimed deduction under s.10B of the Income Tax Act, 1961 (hereinafter referred to as "the Act") in respect of foreign exchange fluctuation gain of Rs.57,27,538/- arising from export transactions. The Assessing Officer (AO) in the course of scrutiny assessment observed that the said foreign exchange fluctuation gain cannot be said to be in the nature of profits and gains ‘derived from export’ of articles or things or computer software. He accordingly denied benefit of deduction under s.10B in respect of forex fluctuation gain.
Aggrieved, the assessee filed appeal before the CIT(A). The CIT(A) found that the assessee is right in law and on facts in claiming deduction under s.10B of the Act towards foreign exchange fluctuation gain from eligible unit. For arriving at this conclusion, the CIT(A) relied upon the judgement of the Hon’ble Gujarat High Court in the case of Priyanka Gems (2014) 267 CTR 480 (Guj.) among others.
Aggrieved, the Revenue is in appeal before the Tribunal.
The short question for determination is whether an assessee is eligible to claim deduction under s.10B towards foreign exchange fluctuation gain received on export bills or not. We find that the issue is
ITA No. 3086/Ahd/2014 DCIT vs. M/s.Shree Ambica Polymer Pvt.Ltd. Asst.Year – 2011-12 - 3 - no longer res integra. The issue is squarely covered in favour of the assessee by series of judgements, some of which are noted hereunder:- (i) CIT vs. Amba Impex (2006) 282 ITR 144 (Guj.)
(ii) Priyanka Gems (2014) 267 CTR 480 (Guj.) (iii) Pr.CIT vs. Sun Pharmaceutical Industries Ltd. (2016) 240 Taxman 686 (Guj.)
(iv) ITO vs. Banyan Chemicals (P.) Ltd. (2009) 117 ITD 376 (Ahd.)[TM].
(v) ACIT vs. M/s.Chand Engineering in ITA No.168 (Asr)/2010 – AY 2006-07, order dated 10/06/2011.
(vi) Renaissance Jewellery (P.) Ltd. vs. ITO (2006) 101 ITD 380 (Mum.).
The issue being fairly settled in favour of the assessee by long line of precedents, we are unable to see any infirmity to the order of CIT(A).
In the result, appeal of the Revenue is dismissed.
This Order pronounced in Open Court on 19/ 05/2017
Sd/- Sd/- (एस.एस.गोदारा) (�द�प कुमार के�डया) �या�यक सद�य लेखा सद�य ( PRADIP KUMAR KEDIA ) ( S.S. GODARA ) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 19/ 05 /2017 ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS
ITA No. 3086/Ahd/2014 DCIT vs. M/s.Shree Ambica Polymer Pvt.Ltd. Asst.Year – 2011-12 - 4 -
आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)-XIV, Ahmedabad �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//
उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation .. 18.5.17 (dictation-pad 5-pages attached at the end of this appeal-file) 2. Date on which the typed draft is placed before the Dictating Member …18.5.17 3. Other Member… 4. Date on which the approved draft comes to the Sr.P.S./P.S…………….. 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S…….19.5.17 7. Date on which the file goes to the Bench Clerk…………………19.5.17 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order………………