“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

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

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

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

Urmila Tank, Jaipur vs. Income Tax Officer, Ward 5(2), Jaipur

In the result, appeal of the assessee is partly allowed

ITA 259/JPR/2023[2016-17]Status: DisposedITAT Jaipur26 Sept 2023AY 2016-17

Bench: The Tribunal On 22.04.2023 Within The Time Limit. The Due Date Of Filing

For Appellant: Shri Rahul Chatter, AdvocateFor Respondent: Ms Monisha Choudhary (JCIT)

Section 1Section 44A

from the definition of total turnover. As per this circular, deduction under section 80HHC is allowed if the sale proceeds are receivable in convertible foreign exchange. The deduction under this section shall be allowed only if the sale proceeds are received in or brought into India within a period ... definition of total turnover. As per this circular, the deduction under section 80HHC is allowed if the sale proceeds are receivable in convertible foreign exchange. The deduction under this section shall be allowed only if the sale proceeds are received in or brought into India within a period

Hindustan Unilever Ltd, Mumbai vs. ITO Cir 1(1)(4), Mumbai

In the result, both the appeal of the assessee and the revenue are partly allowed

ITA 5431/MUM/2011[2001-02]Status: DisposedITAT Mumbai18 Aug 2023AY 2001-02

Bench: Shri Vikas Awasthy () & Ms. Padmavathy S. ()

Section 10BSection 80HSection 80I

export proceeds of Rs.45,87,281/- by stating that the deduction is available only to the extent of the proceeds actually realized in convertible foreign exchange. The Assessing Officer set off the loss reported by the assessee from export of trading goods from against profits from the manufacturing 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 10A(2) have to be complied with. It is pertinent

M/S. Karnawat International Pvt. Ltd., Jaipur vs. ITO, Rajsamand

In the result, the appeals of the assessee is dismissed

ITA 36/JODH/2015[2007-08]Status: DisposedITAT Jodhpur11 Aug 2023AY 2007-08

Bench: Shri Pavan Kumar Gadale & Dr. Dipak P. Ripote

Section 10ASection 10BSection 154Section 155

proceedings, the Assessing Officer made a disallowance of Rs. 13,47,897/- on the ground that the sale proceeds were not received in convertible foreign exchange within six months which was the statutory time allowed. However, subsequently, the assessee received the amounts in convertible foreign exchange in India ... record. The ld. CIT(A) confirmed the same. Neither the AO nor the CIT(A) has doubted the receipt of impugned amounts in convertible foreign exchange on the date mentioned. Section 155(11A) of the Act is reproduced hereunder:- “155.... [(11A) Where in the assessment for any year, the deduction

M/S. Karnawat International Pvt. Ltd., Jaipur vs. ITO, Rajsamand

In the result, the appeals of the assessee is dismissed

ITA 35/JODH/2015[2006-07]Status: DisposedITAT Jodhpur11 Aug 2023AY 2006-07

Bench: Shri Pavan Kumar Gadale & Dr. Dipak P. Ripote

Section 10ASection 10BSection 154Section 155

Abhay Chordia, Jaipur vs. DCIT Circle 1, Jaipur

Appeal of the assessee is partly allowed

ITA 291/JPR/2023[2014-15]Status: HeardITAT Jaipur03 Aug 2023AY 2014-15

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Deeraj Borad, CAFor Respondent: Sh. Anoop Singh (Addl. CIT)

Section 139(1)Section 143(3)Section 145(3)Section 69C

stamped by customs department, Airways bills, Shipping bill, Certificate of Insurance of goods exported, Bank statements showing receipts of export sale proceeds in convertible foreign exchange were filed before the AO. 2. That the entire fabric being woven against the assessee by treating the purchases from the above named parties

Uni Design Jewellery Pvt Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle-1(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 1345/MUM/2023[2017-2018]Status: DisposedITAT Mumbai31 Jul 2023AY 2017-2018

Bench: Shri Amit Shukla & Shri Amarjit Singhuni Design Elite Jewellery Vs. Dcit, Cc-1(2) Private Limited 906, 9Th Floor, Pratishtha 401 & 402, 4Th Floor Bhavan, Old Cgo Bldg. Tower- Ii, Seepz ++ M.K. Road, Andheri (East), Mumbai - 400020 Mumbai – 400 096 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaack3499E Appellant .. Respondent [ Appellant By : Vijay Mehta Respondent By : Lieder Panicker Date Of Hearing 26.07.2023 Date Of Pronouncement 31.07.2023 आदेश / O R D E R Per Amarjit Singh (Am): This Appeal Filed By The Assesse Is Directed Against The Order Passed By The Ld. Cit(A)-47, Mumbai, Dated 17.03.2023 For A.Y. 2017- 18. The Assessee Has Raised The Following Grounds Before Us: “On The Facts & Circumstances Of The Case & In Law, The Hon'Ble Cit(A) Erred In Confirming The Disallowance Made By The Ld. Ao By Not Considering Export Sale Realized After Limitation Of Time As Export Turnover & Consequently Restricting Deduction U/S 10Aa Of The Act By Rs.6,87,170 By Computing Deduction U/S 10Aa At Rs.5,66,02,032. The Appellant Prays That Export Sale Realized After Limitation Of Time Be Considered As Export Turnover & Deduction U/S 10Aa As Claimed By The Appellant Be Granted. The Appellant Craves, Leave To Add, Amend, Alter, Omit Any Of The Grounds Of Appeal Before Or During The Hearing Of The Appeal, If So Advised.”

For Appellant: Vijay MehtaFor Respondent: Lieder Panicker

Section 10ASection 143(2)

form No. 56F, the realization of export proceeds is required to be shown. In that form assessee has shown that full consideration in convertible foreign exchange for exports made by the undertaking was brought into in India within a period of 6 months from the end of the previous year ... limit of bringing such consideration into India like section 10A(3) which provides for receipt of consideration or sale proceeds in India in convertible foreign exchange within a period of 6 months from the end of the previous year, or within such further period as the competent authority may allow

Mmtc Ltd vs. DCIT, Circle-5(1)

The appeal is allowed, with aforesaid consequences, as directed in ground wise findings

ITA 1722/DEL/2006[2003-2004]Status: DisposedITAT Delhi30 Jun 2023AY 2003-2004

Bench: Sh. G.S.Pannu, Hon’Ble & Sh. Anubhav Sharmam/S. Mmtc Ltd., Scope Vs. Dcit, Complex, Circle-5(1) Core 1,7, Institutional Area, New Delhi Lodhi Road, New Delhi- 110003 Pan : (Appellant) (Respondent)

Section 143(3)Section 44ASection 80Section 80H

term "export turnover" under the existing provisions, means the sale proceeds (excluding freight and insurance) receivable by the assessee in convertible foreign exchange. In other words, the FOB value of exports. The Finance Act, 1990 has restricted the definition of the term "export turnover" to mean FOB sale proceeds actually ... received by the assessee in convertible foreign exchange within six months of the end of the previous year or within such further period as the Chief Commissioner/Commissioner may allow in this regard. 9. Thus, in the case of an assessee who is doing export business exclusively, "export turnover and total

ACIT CC-18 vs. Neena Hardeep Singh

Accordingly, this ground is allowed for statistical purposes

ITA 1421/DEL/2008[2004-2005]Status: DisposedITAT Delhi14 Jun 2023AY 2004-2005

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaacit, Vs. Mrs. Neena Hardeep Singh Central Circle-18, L-5, Hauz Khas Enclave, Room No. 327, 3Rd Floor New Delhi Ara Centre, E-2, Pan : Aarps4684B Jhandewalan Extn., New Delhi

Section 143(2)Section 143(3)Section 250

appears that this cash was used to be sent to a foreign country by Hawala channels to be received as sale proceeds in convertible foreign exchange. 2.1 Further with regard to other six parties, the Ld. AO was not satisfied of the purchases made as no confirmation was provided, accordingly ... Shri Hardeep Nihal Singh. The assessee executes bogus exports in names of these concerns and bring equivalent sale proceeds to invoice value in convertible foreign exchange in India through banking channels in the name of the assessee. Against these fictitious exports, assessee has also claimed export benefits i.e. duty drawback

ACIT.Commissioner of Income Tax, Range 10(1), Mumbai vs. M/S Tata Consultancy Services Ltd (Successor Company to M/S Cmc Limited), Mumbai

Accordingly the same is dismissed

ITA 6824/MUM/2011[2007-08]Status: DisposedITAT Mumbai03 May 2023AY 2007-08

Bench: Shri Aby T.Varkey, Jm & Shri Om Prakash Kant, Am आयकर अपील सं/I.T.A.No.6824/Mum/2011 (निर्धारणवर्ा/Assessment Year:2007-08) Assistant Commissioner Of बिधम M/S Tata Consultancy Income Tax-10 (1) Services Ltd (Successor Vs. 455, Aayakar Bhavan, 4Th Company To M/S Cmc Floor, M.K. Marg, Ltd.) Mumbai-400 020 9Th Floor, Nirmal Building Nariman Point, Mumbai-400 021 स्थधयीलेखधसं/.जी. आइ. आर. सं/.Pan/Gir No: .Aaacc2030K .. अपीलार्थी प्रत्यर्थी / Appellant / Respondent

For Respondent: Shri Harsh Kothari

Section 10A

Hyderabad Unit without appreciating the fact that tax withheld by the foreign party was not received by the assessee in India in convertible foreign exchange. 2. On the facts and in the circumstances of the case as well as in law, the Ld. CIT(A) has erred in deleting ... Hyderabad Unit, without appreciating the fact living expenses were not received by the assessee in India in convertible foreign exchange. 3. On the facts and in the circumstances of the case as well as in law, the Ld. CIT(A) has erred in deleting the addition made by the Assessing

Assistant Comissioner of Income Tax Central Circle-=1, Jalandhar vs. M/S Dp Ventures Private Limited, Jalandhar

In the result, appeals of the revenue ITA No 205/Asr/2022 & ITA No

ITA 206/ASR/2022[2012-13]Status: DisposedITAT Amritsar27 Apr 2023AY 2012-13

Bench: Dr. M. L. Meenaandsh. Anikesh Banerjeei.T.A.No. 205/Asr/2022 Assessment Year: 2015-16 Asstt. Commissioner Of Income Vs. M/S Silverline Builtech Tax, Central Circle- Jalandhar. Pvt. Ltd. 306L-1, Model Town, Jalandhar. (Appellant) [Pan: Aaocs9502J] (Respendent)

Section 153ASection 250(6)Section 68

identity of the loan creditor. The loan creditor himself NRI the transaction with the assessee-company was done through bank in convertible foreign exchange. The relevant certificates from bankers and bank statements are also placed before bench, in APB, page 8-9. The doubt about the creditworthiness is also cleaned

Assistant Commissioner of Income Tax Central Circle-1, Jalandhar vs. M/S Silverline Buildtech Privta Limited, Jalandhar

In the result, appeals of the revenue ITA No 205/Asr/2022 & ITA No

ITA 205/ASR/2022[2015-16]Status: DisposedITAT Amritsar27 Apr 2023AY 2015-16

Section 153ASection 250(6)Section 68

M/S. Computer Science Corporation India Pvt. Ltd., Chennai vs. Deputy Commissioner of Income Tax-Circle 2(1), Indore

In the result, all the three appeals are partly allowed for statistical purpose and the Stay Application is also disposed of

ITA 319/IND/2018[2013-14]Status: DisposedITAT Indore10 Apr 2023AY 2013-14

Bench: Ms. Suchitra Kamble & Shri Bhagirath Mal Biyani

For Appellant: Shri Vishal Kalra, AdvocateFor Respondent: Shri P.K. Mishra, CIT DR

Section 143(3)Section 144C(13)Section 144C(8)

exchange gain has accrued to the assessee during the relevant financial year and the same was solely because of the export proceeds in convertible foreign exchange and had direct nexus with the exports of the assessee. Thus, the foreign exchange gain must be considered as operating income for the purpose

M/S. Computer Science Corporation India Pvt. Ltd., Chennai vs. The ACIT-Circle 2(1), Indore

In the result, all the three appeals are partly allowed for statistical purpose and the Stay Application is also disposed of

ITA 292/IND/2017[2012-13]Status: DisposedITAT Indore10 Apr 2023AY 2012-13

Bench: Ms. Suchitra Kamble & Shri Bhagirath Mal Biyani

For Appellant: Shri Vishal Kalra, AdvocateFor Respondent: Shri P.K. Mishra, CIT DR

Section 143(3)Section 144C(13)Section 144C(8)

M/S. Computer Sciences Corporation India Private Limited, Indore vs. The Asst. Commissioner of Income Tax-2(1), Indore

In the result, all the three appeals are partly allowed for statistical purpose and the Stay Application is also disposed of

ITA 179/IND/2016[2011-12]Status: DisposedITAT Indore10 Apr 2023AY 2011-12

Bench: Ms. Suchitra Kamble & Shri Bhagirath Mal Biyani

For Appellant: Shri Vishal Kalra, AdvocateFor Respondent: Shri P.K. Mishra, CIT DR

Section 143(3)Section 144C(13)Section 144C(8)

M/S. P R Jangid Education Society, Jodhpur vs. PCIT/CIT, Jodhpur

In the result, appeal of the assessee is allowed

ITA 67/JODH/2021[2021-22]Status: DisposedITAT Jodhpur22 Mar 2023AY 2021-22

Bench: Shri Kul Bharatshri Manish Boradvs Pcit/Cit, M/S. P R Jangid Education Society, J-16, M/S. Mgb & Co., Llp, Jodhpur Lal Kothi Yojana, Sahakar Marg, Jaipur (Appellant) (Respondent) Pan No. Aabap0800H Assessee By Shri Sandeep Jhanwar, Ca Revenue By Shri O.P.Meena,Cit Dr Date Of Hearing 21/03/2023 Date Of 22/03/2023 Pronouncement

Section 10Section 115TSection 2Section 92F

section 10,— (a) in clause (4D), with effect from the 1st day of April, 2021,— (i) for the words "convertible foreign exchange, to the extent such income accrued or arisen to, or is received in 2 | P a g e respect of units held by a non-resident", the words ... brackets 'convertible foreign exchange or as a result of transfer of securities (other than shares in a company resident in India) or any income from securities issued by a non-resident (not being a permanent establishment of a non-resident in India) and where such income otherwise does not accrue

M/S. Ibm India Private Limited, Bangalore vs. Joint Commissioner of Income Tax, Special Range-4, Bangalore

In the result, appeal filed by the assessee stands partly allowed

ITA 2588/BANG/2019[2006-07]Status: DisposedITAT Bangalore30 Dec 2022AY 2006-07

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri Percy Pardiwala, Sr

allow the claim to the extent of receipt of sale proceeds of computer software exported out of India being brought into India in convertible foreign exchange. 10.3 The Ld.AO granted relief to the extent of INR 175,92,17,915 and disallowed the balance amount

Srinivas Rudrappa, Bangalore vs. Income Tax Officer, TDS, Ward-3(1), Bangalore

In the result, both the appeals filed by the assessee stands allowed

ITA 703/BANG/2022[2014-15]Status: DisposedITAT Bangalore02 Dec 2022AY 2014-15

Bench: Smt. Beena Pillai & Shri. Laxmi Prasad Sahu

For Appellant: Shri Rajiv C Nulvi, C.A : Smt. Priyadarshini

Section 133ASection 194HSection 201Section 201(1)

approval from CBDT which was refused. 7.6. On such facts, Hon’ble Supreme Court held that the income was received in India in convertible foreign exchange in a lawful and permissible manner through premier institution concern with the subject matter being the RBI and Hon’ble Supreme Court allowed

Srinivas Rudrappa, Bangalore vs. Income Tax Officer, TDS, Ward-3(1), Bangalore

In the result, both the appeals filed by the assessee stands allowed

ITA 702/BANG/2022[2013-14]Status: DisposedITAT Bangalore02 Dec 2022AY 2013-14

Bench: Smt. Beena Pillai & Shri. Laxmi Prasad Sahu

For Appellant: Shri Rajiv C Nulvi, C.A : Smt. Priyadarshini

Section 133ASection 194HSection 201Section 201(1)

Tech Mahindra Ltd, Mumbai vs. DCIT 2(3), Mumbai

In the result we are not inclined to interfere in the order of Ld

ITA 6256/MUM/2016[2010-11]Status: DisposedITAT Mumbai30 Nov 2022AY 2010-11

Bench: Shri Vikas Awasthy & Shri Gagan Goyaltech Mahindra Limited, C/O Marriott Hotels India Pvt. Ltd. Gateway Building, Apollo Bunder, Mumbai-400001 Pan: Aaacm3484F ...... Appellant Vs. Dcit-2(3), Room No. 552, Aayakar Bhavan, M.K. Marg, Mumbai-400020. ..... Respondent Acit Circle-2(3)(1), Room No. 552, 5Th Floor, Aayakar Bhavan, M.K. Marg, Mumbai-400020. ..... Appellant Vs. Tech Mahindra Limited, C/O Marriott Hotels India Pvt. Ltd. Gateway Building, Apollo Bunder, Mumbai-400001 Pan: Aaacm3484F ..... Respondent Appellant/Assessee By : Sh. J.D. Mistri / Sh. Harsh Kapadia Respondent/Revenue By : Sh. K.C. Kanojia- Cit-Dr

For Appellant: Sh. J.D. Mistri / Sh. Harsh KapadiaFor Respondent: Sh. K.C. Kanojia- CIT-DR

Section 10(34)Section 10ASection 14ASection 234BSection 250Section 32(1)

consideration in respect of export of article or things or computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things

ACIT, Chennai vs. M/S. Pentasoft Technologies Ltd., Chennai

In the result, appeal filed by the Revenue in ITA No

ITA 1248/CHNY/2011[2001-02]Status: DisposedITAT Chennai16 Nov 2022AY 2001-02

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.1158/Chny/2011 िनधा"रण वष" /Assessment Year: 2001-02 M/S.Pentasoft Technologies Ltd., V. The Ito (Osd)/The Acit, No.1, First Main Road, Company Circle-V(2), United India Colony, Chennai. Kodambakkam, Chennai – 600 024. [Pan: Aaacp 1895 R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.I. Dinesh, AdvFor Respondent: Dr.S.Palanikumar, CIT

expenditures proportionately. In the next paragraph, he had considered only Rs.70,10,93,076 as Export turnover (ETO) that was brought in as convertible foreign exchange into country as per section 10A(3) of the IT Act. As per the original assessment order the deduction of 10A allowed