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“convertible foreign exchange”

Chapter III - Incomes Not IncludedSection 10BSection 10B Explanation 2110 judgments

The decision most relied on for convertible foreign exchange is J.B. Boda & Co. (P.) Ltd. v. CBDT (223 ITR 271), cited in 21 judgments on BharatTax.

Leading authorities on convertible foreign exchange

J.B. Boda & Co. (P.) Ltd. v. CBDT
223 ITR 271 · 1997 · Supreme Court
21
citing judgments

The method of settlement of accounts is irrelevant in determining the true nature of a transaction for tax purposes. Export proceeds received in foreign exchange and utilized abroad are considered deemed receipts in India if properly reported.

CIT v. Electronic Controls & Discharge Systems (P) Ltd.
245 CTR 465 · 2011 · High Court
14
citing judgments

For the purpose of computing deduction under Section 10AA of the Income-tax Act, 1961, 'export turnover' does not solely include direct exports where the assessee brings foreign convertible exchange into India, and the principles applied to Section 10A may not be directly applicable due to differing definitions of 'export turnover'.

Sterling Agro Products Processing (P) Ltd. v. ACIT
48 SOT 80 · 2011 · ITAT
11
citing judgments

A business processing gherkins (cucumbers) into gherkin pickles, through various manufacturing processes, is entitled to deduction under Section 10B of the Income-tax Act, 1961.

Judgments citing convertible foreign exchange

Deputy Commissioner of Income Tax 1(1)(2), Mumbai vs. Hindustan Unilever Limited, Mumbai

ITA 929/MUM/2018[2004-05]Status: DisposedITAT Mumbai30 Jan 2026AY 2004-05

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nishant ThakkarFor Respondent: Shri Ajay Chandra, CIT-DR
Section 10BSection 145ASection 14ASection 250Section 80Section 801BSection 80H

within the prescribed time. Since the deduction under section 80-HHC of the Act is available only on the proceeds actually realised in convertible foreign exchange, the AO vide order passed under section 143 (3) of the Act excluded the amount of Rs.9,26,74,373 from the export turnover

Hindustan Unilever Limited, Mumbai vs. Dy.CIT-1(1)(2), Mumbai

In the result, the appeal by the Revenue and cross-objection by the

ITA 1041/MUM/2018[2004-05]Status: DisposedITAT Mumbai30 Jan 2026AY 2004-05

Bench: Shri Om Prakash Kant

For Appellant: Shri Nishant ThakkarFor Respondent: Shri Ajay Chandra, CIT-DR
Section 10BSection 145ASection 14ASection 250Section 80Section 801BSection 80HSection 8O

within the prescribed time. Since the deduction under section 80-HHC of the Act is available only on the proceeds actually realised in convertible foreign exchange, the AO vide order passed under section 143 (3) of the Act excluded the amount of Rs.9,26,74,373 from the export turnover ... evident that the intention of the legislature is to encourage establishment of export oriented industries with the object of receiving convertible foreign exchange. In order to claim deduction under section 10A of the Act, the conditions laid down under section IOA(2) have to be complied with. It is pertinent

Srf Limited, New Delhi vs. DCIT, Circle- 1, Ltu, New Delhi

In the result, the appeal being ITA No

ITA 4539/DEL/2017[2013-14]Status: DisposedITAT Delhi12 Dec 2025AY 2013-14

Bench: Shris.Rifaur Rahman & Shri Sudhir Pareek

For Appellant: Shri Pradeep Dinodia, CAFor Respondent: Shri S.K. Jadhav, CIT DR
Section 10ASection 143(3)Section 144C(5)Section 14ASection 92BSection 92C

eligibility period. During the relevant financial year, the assessee earned export proceeds amounting to Rs. 3,91,19,81,061/- in convertible foreign exchange against a total turnover of Rs. 7,57,87,39,208/-. The book profit of the SEZ unit for the relevant period stood

Srf Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal being ITA No

ITA 80/DEL/2016[2011-12]Status: DisposedITAT Delhi12 Dec 2025AY 2011-12

Bench: Shris.Rifaur Rahman & Shri Sudhir Pareek

For Appellant: Shri Pradeep Dinodia, CAFor Respondent: Shri S.K. Jadhav, CIT DR
Section 10ASection 143(3)Section 144C(5)Section 14ASection 92BSection 92C

eligibility period. During the relevant financial year, the assessee earned export proceeds amounting to Rs. 3,91,19,81,061/- in convertible foreign exchange against a total turnover of Rs. 7,57,87,39,208/-. The book profit of the SEZ unit for the relevant period stood

Birlasoft Limited, Pune vs. DCIT, Circle 8, Pune

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 1116/PUN/2023[2018-19]Status: DisposedITAT Pune24 Nov 2025AY 2018-19

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2018-19 Birlasoft Limited Dcit, Circle – 8, Pune 35 & 36, Rajiv Gandhi Infotech Vs. Park, Phase-1, Midc, Hinjawadi, Pune – 411057 Pan: Aaack7308N (Appellant) (Respondent) Assessee By : Shri Kishor B Phadke Department By : Shri Amol Khairnar, Cit-Dr Date Of Hearing : 30-09-2025 Date Of Pronouncement : 24-11-2025 O R D E R Per R.K. Panda, V.P: This Appeal Filed By The Assessee Is Directed Against The Order Dated 23.08.2023 Of The Ld. Cit(A) / Nfac, Delhi Relating To Assessment Year 2018-19. 2. Facts Of The Case, In Brief, Are That The Assesse Is A Public Limited Company & Is Engaged In The Business Of Computer & Software Services. It Filed Its Return Of Income On 29.11.2018 Declaring Total Income Of Rs.95,13,15,400/-. The Return Was Processed By The Cpc & An Intimation U/S 143(1) Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Was Passed On 25.01.2021 Determining The Total Income At Rs.1,00,23,03,750/-. The Case Was Selected For Complete Scrutiny Assessment Under The E-Assessment Scheme, 2019 On The Following Issues:

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri Amol Khairnar, CIT-DR
Section 10ASection 10A(3)Section 143(1)Section 143(2)Section 27Section 36(1)(va)Section 51Section 80ISection 90

deprived of the benefit of 13 deduction granted u/s 10AA of the Act merely on the reasoning that the assessee did not receive convertible foreign exchange on deemed exports. 27. We find some force in the above arguments of the Ld. Counsel for the assessee. We find the Ahmedabad Bench ... assessee can be denied the benefit of the deduction provided under section 10AA of the Act in case of domestic sales and no convertible foreign exchange was brought to India. There is no dispute to the fact that the assessee has made the sale

Addl CIT Sp RG 22, Mumbai vs. Dsp Merrill Lynch Ltd, Mumbai

In the result, appeal of the assessee is partly allowed and the appeal of the revenue is dismissed

ITA 2198/MUM/2011[1994-95]Status: DisposedITAT Mumbai27 Oct 2025AY 1994-95

Bench: Shri Amit Shukla, Jm& Ms Padmavathy S, Am

For Appellant: Shri Nitesh JoshiFor Respondent: Shri. Leyaqat Ali Aafaqui, Sr. AR
Section 140ASection 143(1)(a)Section 143(3)Section 147Section 234Section 234BSection 234B(3)Section 250Section 80Section 800

During the year under consideration, the assessee has received payment amounting to Rs. 6,98,49,174/- from 5 foreign enterprises in convertible foreign exchange in consideration for the information containing industrial, commercial or scientific knowledge or in consideration of technical or professional services rendered outside India. The assessee claimed ... rendered or agreed to be rendered out- side India to such Government or enterprise by the assessee, and such income is received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, is brought

Dsp Merrill Lynch Limited, Mumbai vs. Addl C.I.T. Range 4(1), Mumbai

In the result, appeal of the assessee is partly allowed and the appeal of the revenue is dismissed

ITA 1581/MUM/2011[1994-95]Status: DisposedITAT Mumbai27 Oct 2025AY 1994-95

Bench: Shri Amit Shukla, Jm& Ms Padmavathy S, Am

For Appellant: Shri Nitesh JoshiFor Respondent: Shri. Leyaqat Ali Aafaqui, Sr. AR
Section 140ASection 143(1)(a)Section 143(3)Section 147Section 234Section 234BSection 234B(3)Section 250Section 80Section 800

During the year under consideration, the assessee has received payment amounting to Rs. 6,98,49,174/- from 5 foreign enterprises in convertible foreign exchange in consideration for the information containing industrial, commercial or scientific knowledge or in consideration of technical or professional services rendered outside India. The assessee claimed ... rendered or agreed to be rendered out- side India to such Government or enterprise by the assessee, and such income is received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, is brought

DCIT(CC)-8(3), Mumbai vs. 63 Moons Technologies Limited, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 2112/MUM/2025[2013-14]Status: DisposedITAT Mumbai22 Sept 2025AY 2013-14

Bench: Shri Sandeep Gosain & Shri Girish Agrawal

For Appellant: Shri Sukhsagar Syal, AdvocateFor Respondent: Shri Umashankar Prasad, CIT DR
Section 10ASection 143(3)Section 147Section 35(1)(ii)

purpose. The export were made in foreign currency and sales proceeds of computer software exported out of India were received in India in convertible foreign exchange within stipulated period of 6 months from the end of the previous year or such extended period as permitted. A Copy of statement showing

DCIT(CC)-8(3), Mumbai vs. 63 Moons Technologies Limited, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 2111/MUM/2025[2012-13]Status: DisposedITAT Mumbai22 Sept 2025AY 2012-13

Bench: Shri Sandeep Gosain & Shri Girish Agrawal

For Appellant: Shri Sukhsagar Syal, AdvocateFor Respondent: Shri Umashankar Prasad, CIT DR
Section 10ASection 143(3)Section 147Section 35(1)(ii)

purpose. The export were made in foreign currency and sales proceeds of computer software exported out of India were received in India in convertible foreign exchange within stipulated period of 6 months from the end of the previous year or such extended period as permitted. A Copy of statement showing

DCIT(CC)-8(3), Mumbai vs. 63 Moons Technologies Limited, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 2110/MUM/2025[2011-12]Status: DisposedITAT Mumbai22 Sept 2025AY 2011-12

Bench: Shri Sandeep Gosain & Shri Girish Agrawal

For Appellant: Shri Sukhsagar Syal, AdvocateFor Respondent: Shri Umashankar Prasad, CIT DR
Section 10ASection 143(3)Section 147Section 35(1)(ii)

purpose. The export were made in foreign currency and sales proceeds of computer software exported out of India were received in India in convertible foreign exchange within stipulated period of 6 months from the end of the previous year or such extended period as permitted. A Copy of statement showing

ACIT, New Delhi vs. M/S Nuwave E Solutions (P) Ltd., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 3676/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Sept 2025AY 2007-08

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year : 2007-08] Acit, Vs M/S. Nuwave E Solutions (P) Circle-13(1), Ltd., 3Rd Floor, District Centre, New Delhi Dda Building, Nehru Place, New Delhi. Pan-Aabcn5790Q Appellant Respondent Appellant By Shri Pravin Rawal, Cit Dr Respondent By Dr. Rakesh Gutpa, Adv., Shri Saksham Agarwal, Ca, Shri Somil Agarwal, Adv. & Shri Deepesh Garg, Adv. Date Of Hearing 26.06.2025 Date Of Pronouncement 12.09.2025 Order 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 & 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 Of Income Filed U/S 139(1). The Case Of The Assessee Was Selected For Scrutiny & Various Queries Were Raised Which Were Replied By The Assessee. The Assessee Is Engaged In The Business Of Development & Export Of Software & 100% Eou Registered With Director Software Technology Park Of India In Terms Of Registration Certificate Dated 31.03.1999. The Major Shareholder In The Assessee Company Is Shri Anil Gutpa Who Is Having 99% Shareholding & Is Taking Substantial Interest In Day-To-Day Affairs Of The Assessee & Also In Its Associate Enterprises (“Ae”) At Us Who Is The Sole Buyer Of The Software Developed By The Assessee.

Section 10Section 10ASection 139(1)Section 143(3)Section 250Section 40Section 801A

gains from foreign exchange fluctuations is directly relatable to the article and things exported by the assessee where the payments were received in convertible foreign exchange and due to timing difference, fluctuation gains earned by the assessee. It is also seen that in preceding assessment years, revenue has accepted foreign

Ganesh Polychem Limited, Mumbai vs. DCIT, CC-3(2), Mumbai

The appeal of the assessee is allowed for statistical purposes

ITA 2145/MUM/2025[2017-18]Status: DisposedITAT Mumbai05 Sept 2025AY 2017-18

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Appellant: Shri Sanjay Parekh, ARFor Respondent: Shri Arun Kanti Datta, CIT-DR
Section 115JSection 132Section 139(1)Section 153ASection 250

Para 3.15.3 of the FTP, the scheme provided for incentives at 2% of the FOB value of eligible exports made in freely convertible foreign exchange to designated “linked markets”. The stated objective was “to continuously increase our percentage share of global trade.” The policy expressly recognised that products with high

Leshark Global LLP, Mumbai vs. DCIT CC 4(1), Mumbai

In the result, all the appeals for A

ITA 3180/MUM/2025[2015-16]Status: DisposedITAT Mumbai31 Jul 2025AY 2015-16

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 143(3)Section 153ASection 153CSection 153DSection 56Section 69

Para 3.15.3 of the FTP, the scheme provided for incentives at 2% of the FOB value of eligible exports made in freely convertible foreign exchange to designated “linked markets”. The stated objective was “to continuously increase our percentage share of global trade.” The policy expressly recognised that products with high

Leshark Global LLP, Mumbai vs. DCIT CC 4(1), Mumbai

In the result, all the appeals for A

ITA 3178/MUM/2025[2013-14]Status: DisposedITAT Mumbai31 Jul 2025AY 2013-14

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 143(3)Section 153ASection 153CSection 153DSection 56Section 69

Para 3.15.3 of the FTP, the scheme provided for incentives at 2% of the FOB value of eligible exports made in freely convertible foreign exchange to designated “linked markets”. The stated objective was “to continuously increase our percentage share of global trade.” The policy expressly recognised that products with high

Leshark Global LLP, Mumbai vs. DCIT CC 4(1), Mumbai

In the result, all the appeals for A

ITA 3177/MUM/2025[2012-13]Status: DisposedITAT Mumbai31 Jul 2025AY 2012-13
Section 143(3)Section 153ASection 153CSection 153DSection 56Section 69

Para 3.15.3 of the FTP, the scheme provided for incentives at 2% of the FOB value of eligible exports made in freely convertible foreign exchange to designated “linked markets". The stated objective was “to continuously increase our percentage share of global trade." The policy expressly recognised that products with high

Green Infra Wind Farm Asset Ltd., Gurugram vs. ACIT, Circle 10(2), New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 930/DEL/2020[2016-17]Status: DisposedITAT Delhi04 Jul 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal[Assessment Year : 2016-17] Green Infra Wind Farm Asset Ltd., Vs Acit, 5Th Floor, Tower C, Building No.8, Circle-10(2), Dlf Cyber City, Gurugram, New Delhi. Haryana-122002. Pan-Aaecg4080H Appellant Respondent Appellant By Shri Vartik Chokshi, Ca & Shri Biren Shah, Ca Respondent By Shri Rajesh Kumar Dhanesta, Sr.Dr Date Of Hearing 23.04.2025 Date Of Pronouncement 04.07.2025 Order

Section 115JSection 143(3)Section 250

where the assessee referred to therein, is a unit located in an International Financial Services Centre and derives its income solely in convertible foreign exchange, the provisions of sub-section (1) shall have the effect as if for the words "eighteen and one-half per cent" wherever occurring in that ... Special Economic Zones Act, 2005 (28 of 2005); (b)"unit" means a unit established in an International Financial Services Centre; (c)"convertible foreign exchange" means a foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes

M/S. Genpact India, Gurgaon vs. DCIT, New Delhi

In the result, the appeal of the Revenue is dismissed and the appeal filed by the assessee is partly allowed

ITA 6543/DEL/2016[2013-14]Status: DisposedITAT Delhi13 Jun 2025AY 2013-14

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

For Appellant: Shri Tarandeep Singh, AdvocateFor Respondent: Shri Kailash Dan Ratnoo, CIT DR
Section 10ASection 14A

that a perusal of the said definition clearly shows that it is only when such expenses are included in the consideration received in convertible foreign exchange that the same have to be reduced from export turnover and total turnover, however in the instant case, said expenses have not been invoiced

DCIT, New Delhi vs. M/S. Genpact India, Gurgaon

In the result, the appeal of the Revenue is dismissed and the appeal filed by the assessee is partly allowed

ITA 6415/DEL/2016[2013-14]Status: DisposedITAT Delhi13 Jun 2025AY 2013-14

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

For Appellant: Shri Tarandeep Singh, AdvocateFor Respondent: Shri Kailash Dan Ratnoo, CIT DR
Section 10ASection 14A

that a perusal of the said definition clearly shows that it is only when such expenses are included in the consideration received in convertible foreign exchange that the same have to be reduced from export turnover and total turnover, however in the instant case, said expenses have not been invoiced

Jindal Saw Ltd., New Delhi vs. ACIT, Circle-13(2), New Delhi

In the result, assessee’s appeal in ITA No

ITA 504/DEL/2022[2014-15]Status: DisposedITAT Delhi04 Jun 2025AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal[Assessment Year : 2011-12] Jindal Saw Ltd. Vs Dcit, 28, Najafgarh Road, Circle-13(2) New Delhi-110015. (Earlier Addl.Cit Range-4), Pan-Aabcs7280C C.R.Building, I.P.Estate, New Delhi-110002. Appellant Respondent [Assessment Year : 2011-12] Dcit, Vs Jindal Saw Ltd. Circle-13(2), (Formerly Known As M/S. Saw Pipes Room No.316A, Ltd.), 28, Najafgarh Road, C.R.Building, New Delhi-110015. New Delhi Pan-Aabcs7280C Appellant Respondent [Assessment Year : 2014-15] Jindal Saw Ltd., Vs Acit, 28, Najafgarh Road, Shivaji Marg, Circle-13(2), New Delhi-110015. New Delhi. Pan-Aabcs7280C Appellant Respondent [Assessment Year : 2015-16] Jindal Saw Ltd. Vs Acit, 28, Najafgarh Road, Circle-13(2) P.O.Ramesh Nagar, C.R.Building, I.P.Estate, New Delhi-110015. New Delhi-110002. Pan-Aabcs7280C Appellant Respondent

Section 143(3)Section 234BSection 43B

proceeds of articles or things or computer software exported out of India are received in or brought into, India by the assessee in convertible foreign exchange, within a period of six months from the ends of the previous year or, within such further period as the competent authority may allow ... this behalf. Since income from insurance, rent recovered from employees and income from scrap sale are not received in convertible foreign exchange hence it does not qualify for the deduction u/s 10B of the Act. ITA Nos.826 & 1000/Del/2016, 4693 & 4760/Del/2019 & 504/Del/2022 5. That the appellant carves leave to add, alter

DCIT Circle-13(2), New Delhi vs. Jindal Saw Ltd., New Delhi

In the result, assessee’s appeal in ITA No

ITA 4760/DEL/2019[2015-16]Status: DisposedITAT Delhi04 Jun 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal[Assessment Year : 2011-12] Jindal Saw Ltd. Vs Dcit, 28, Najafgarh Road, Circle-13(2) New Delhi-110015. (Earlier Addl.Cit Range-4), Pan-Aabcs7280C C.R.Building, I.P.Estate, New Delhi-110002. Appellant Respondent [Assessment Year : 2011-12] Dcit, Vs Jindal Saw Ltd. Circle-13(2), (Formerly Known As M/S. Saw Pipes Room No.316A, Ltd.), 28, Najafgarh Road, C.R.Building, New Delhi-110015. New Delhi Pan-Aabcs7280C Appellant Respondent [Assessment Year : 2014-15] Jindal Saw Ltd., Vs Acit, 28, Najafgarh Road, Shivaji Marg, Circle-13(2), New Delhi-110015. New Delhi. Pan-Aabcs7280C Appellant Respondent [Assessment Year : 2015-16] Jindal Saw Ltd. Vs Acit, 28, Najafgarh Road, Circle-13(2) P.O.Ramesh Nagar, C.R.Building, I.P.Estate, New Delhi-110015. New Delhi-110002. Pan-Aabcs7280C Appellant Respondent

Section 143(3)Section 234BSection 43B

proceeds of articles or things or computer software exported out of India are received in or brought into, India by the assessee in convertible foreign exchange, within a period of six months from the ends of the previous year or, within such further period as the competent authority may allow ... this behalf. Since income from insurance, rent recovered from employees and income from scrap sale are not received in convertible foreign exchange hence it does not qualify for the deduction u/s 10B of the Act. ITA Nos.826 & 1000/Del/2016, 4693 & 4760/Del/2019 & 504/Del/2022 5. That the appellant carves leave to add, alter