2010 (7) TMI 75

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.... for Income-tax Judgment (Judgment of the Court was delivered by  F.M.IBRAHIM KALIFULLA, J.) The Revenue has come forward with this appeal and the question of law raised reads as under: "Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that gains on account of foreign exchange fluctuation held to have direct nexus wit....

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....ated to the export sales of the assessee and, therefore, it cannot be treated as other than part of profit from export. The assessee need not do anything to earn this gain, but it is directly related to the export activity and sales and therefore it has a close and direct nexus with the export sales of the assessee. Accordingly, we allow this issue in favour of the assessee and the order of the C....