CIT v. Priyanka Gems

The ACIT, Circle-4(1)(2), Ahmedabad vs. M/S. Torrent Power Limited, Ahmedabad

…everson Industries Ltd. reported in 55 taxmann.com 440 where it was held as under: 5. So far as question regarding foreign exchange difference is concerned, the same is squarely governed by the decision of this Court in the case of CIT v. Priyanka Gems [2014] 367 ITR 575/51 taxmann.com 259 (Guj.) wherein this Court has answered the question in favour of the assessee and held that that the foreign exchange gain arising out of the fluctuation in the rate of foreign exchange cannot be divested from the export business of the assessee and once export is made, due to variety of reasons, the remission of the export sal…

The ACIT, Circle-4(1)(2), Ahmedabad vs. M/S. Torrent Power Ltd., Ahmedabad

…everson Industries Ltd. reported in 55 taxmann.com 440 where it was held as under: 5. So far as question regarding foreign exchange difference is concerned, the same is squarely governed by the decision of this Court in the case of CIT v. Priyanka Gems [2014] 367 ITR 575/51 taxmann.com 259 (Guj.) wherein this Court has answered the question in favour of the assessee and held that that the foreign exchange gain arising out of the fluctuation in the rate of foreign exchange cannot be divested from the export business of the assessee and once export is made, due to variety of reasons, the remission of the export sal…

Asahi Songwon Colors Limited, Ahmedabad vs. The DCIT, Circle-1(1)(1), Ahmedabad

In the result, the grounds raised by the Assessee are hereby allowed and the appeal filed by the Assessee is allowed

…are not correct in denying the benefit of u/s. 10B of the Act held as follows: 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 arising out of fluctuation in the rate of foreign exchange cannot be divested from the export business of the assessee. Once export is made, due to a variety of reasons, the remission of the export sale consideration may not be made immed…

The ACIT, Circle-5, Ahmedabad vs. M/S. Reckitt Benckiser Healthcare India Ltd., Haryana

In the result, both the appeals of the revenue are dismissed

Bench: Us, The Revenue Has Raised Following Grounds Of Appeal:- “1. The Ld. Cit(A) Has Erred In Law & On Facts In Deleting The Disallowance Of Rs. 21,56,490/- Made On Account Of Product Registration Expense & Not Considering The Findings Of The Ao. 2. The Ld. Cit(A) Has Erred In Law & On Facts In Deleting The Addition Of Rs.30,08,17,258/- Made On Account Of Reduction Of The Claim U/S. 80Ic Of The Act.

…arious products manufactured and therefore have a direct and first degree nexus with the manufacturing activity and accordingly eligible for deduction u/s. 80IC of the Act. The ld. Authorized Representative placed reliance in the case of CIT vs. Priyanka Gems 367 ITR 575 (Gujarat High Court) in which the High Court held that foreign exchange gain arising out of fluctuation in the rate of foreign exchange cannot be divested from the export business of the assessee. Any fluctuation in foreign exchange must be said to have arisen out of the export business and is accordingly eligible for deduction u/s. 80HHC of the…

The Addl.CIT, Range-5, Ahmedabad vs. M/S. Reckitt Benckiser Healthcare India Ltd., Haryana

In the result, both the appeals of the revenue are dismissed

Bench: Us, The Revenue Has Raised Following Grounds Of Appeal:- “1. The Ld. Cit(A) Has Erred In Law & On Facts In Deleting The Disallowance Of Rs. 21,56,490/- Made On Account Of Product Registration Expense & Not Considering The Findings Of The Ao. 2. The Ld. Cit(A) Has Erred In Law & On Facts In Deleting The Addition Of Rs.30,08,17,258/- Made On Account Of Reduction Of The Claim U/S. 80Ic Of The Act.

…arious products manufactured and therefore have a direct and first degree nexus with the manufacturing activity and accordingly eligible for deduction u/s. 80IC of the Act. The ld. Authorized Representative placed reliance in the case of CIT vs. Priyanka Gems 367 ITR 575 (Gujarat High Court) in which the High Court held that foreign exchange gain arising out of fluctuation in the rate of foreign exchange cannot be divested from the export business of the assessee. Any fluctuation in foreign exchange must be said to have arisen out of the export business and is accordingly eligible for deduction u/s. 80HHC of the…

The ACIT, Circle-5, Ahmedabad vs. M/S. Nirma Limited, Ahmedabad

In the result appeal of the assessee is partly allowed for statistical purposes

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 1187 & 896/Ahd/2013 िनधा"रण वष"/Asstt. Years: 2000-2001 & 2004-2005 Nirma Limited, A.C.I.T., Nirma House, Vs. Circle-5, Ashram Road, Ahmedabad. Ahmedabad.

…allowed deduction of Rs.84,594/- which represented exchange rate difference on the realization of export proceeds. The ld.counsel for the assessee relied upon the judgment of the Hon’ble jurisdictional High Court in the case of CIT Vs. Priyanka Gems Vs. ACIT, 367 ITR 575. We find that this decision has been considered by the ld.CIT(A), and thereafter on verification of the details, the ld.CIT(A) accepted case of the assessee in principle. We do not find any error in the order of the ld.CIT(A). If sale proceeds of exported items could not be realized by the assessee and on account of exchange fluctuation the asses…

Nirma Limited, Ahmedabad vs. The Dy CIT, Circle-5, Ahmedabad

In the result appeal of the assessee is partly allowed for statistical purposes

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 1187 & 896/Ahd/2013 िनधा"रण वष"/Asstt. Years: 2000-2001 & 2004-2005 Nirma Limited, A.C.I.T., Nirma House, Vs. Circle-5, Ashram Road, Ahmedabad. Ahmedabad.

…allowed deduction of Rs.84,594/- which represented exchange rate difference on the realization of export proceeds. The ld.counsel for the assessee relied upon the judgment of the Hon’ble jurisdictional High Court in the case of CIT Vs. Priyanka Gems Vs. ACIT, 367 ITR 575. We find that this decision has been considered by the ld.CIT(A), and thereafter on verification of the details, the ld.CIT(A) accepted case of the assessee in principle. We do not find any error in the order of the ld.CIT(A). If sale proceeds of exported items could not be realized by the assessee and on account of exchange fluctuation the asses…

M/S. Motif India Infotech Pvt.Ltd., Ahmedabad vs. The Income Tax Officer, Ward-4(4), Ahmedabad

In the result, the appeal of the assessee is allowed

Bench: Shri Pradip Kumar Kedia & Smt. Madhumita Royआयकर अपील सं./I.T.A. No. 1645/Ahd/2014 ("नधा"रण वष" / Assessment Year : 2005-06)

…is therefore confirmed.” 7. Further aggrieved, the assessee preferred appeal before the Tribunal. 8. We find that the issue is substantially covered in favour of the assessee by the decision of the Hon’ble Gujarat High Court in case of Priyanka Gems (2014) 367 ITR 575 (Guj) as well as Hon’ble Bombay High Court in the case of CIT vs. Gem Plus Jewellery India Ltd. (2010) 194 Taxman 192 (Bom.). The issue is also similarly settled in favour of the assessee by long line of judicial precedents where the consistent view has been taken that such income arising as a result of business of export cannot be divested from…

M/S. Schutz Dishman Biotech Pvt.Ltd., Ahmedabad vs. The Dy.CIT, Circle-8, Ahmedabad

In the result, the Revenue’s appeal is dismissed

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy1. आयकर अपील सं./Ita No.1909/Ahd/2015 2. आयकर अपील सं./Ita No.1947/Ahd/2015 ("नधा"रण वष"/Assessment Year : 2010-11) 1.The Dcit 1. Schutz Disman बनाम/ Circe-8, Ahmedabad Biotech Ltd. Vs. Ahmedabad 2. Schutz Dishman Biotech 2. The Dcit Ltd. Circle-8 Bhadraraj Chambers Ahmedabad Nr.Swastik Cross Road Navrangpura, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaccs 0988C .. (अपीलाथ"/Appellants) (""यथ" / Respondents) Assessee By : Shri Tushar Hemani & Shri Parimal Parmar, Ar Revenue By : Shri Vinod Jalwani, Sr.Dr

…different. Now can this particular exchange variation be also termed as related to export of goods? The answer is no. This aspect was not considered in ITAT case relied upon and so due to difference in facts , it cannot be followed. The case of Priyanka Gems [367 ITR 575 (Guj)] dealt with issue of exclusion in clause (baa) to Explanation of Sec. 80HHC, and that has got nothing to do with provision of Sec.10B and so, that argument is rejected. 8.4. The amount which is allowable to an assessee as a deduction under s. 10B is profits and gains derived by the assessee from 100 per cent EOU. Thus, the amount which qua…

The DCIT, Circle-8, Ahmedabad vs. Schutz Dishman Biotech Ltd., Ahmedabad

In the result, the Revenue’s appeal is dismissed

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy1. आयकर अपील सं./Ita No.1909/Ahd/2015 2. आयकर अपील सं./Ita No.1947/Ahd/2015 ("नधा"रण वष"/Assessment Year : 2010-11) 1.The Dcit 1. Schutz Disman बनाम/ Circe-8, Ahmedabad Biotech Ltd. Vs. Ahmedabad 2. Schutz Dishman Biotech 2. The Dcit Ltd. Circle-8 Bhadraraj Chambers Ahmedabad Nr.Swastik Cross Road Navrangpura, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaccs 0988C .. (अपीलाथ"/Appellants) (""यथ" / Respondents) Assessee By : Shri Tushar Hemani & Shri Parimal Parmar, Ar Revenue By : Shri Vinod Jalwani, Sr.Dr

…different. Now can this particular exchange variation be also termed as related to export of goods? The answer is no. This aspect was not considered in ITAT case relied upon and so due to difference in facts , it cannot be followed. The case of Priyanka Gems [367 ITR 575 (Guj)] dealt with issue of exclusion in clause (baa) to Explanation of Sec. 80HHC, and that has got nothing to do with provision of Sec.10B and so, that argument is rejected. 8.4. The amount which is allowable to an assessee as a deduction under s. 10B is profits and gains derived by the assessee from 100 per cent EOU. Thus, the amount which qua…