2013 (1) TMI 37

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.... the Income tax Act. The assessee was engaged in the business of manufacturing and export of processed food products. The assessee claimed deduction under section 10A in respect of export of products. The AO noted that there were three remittances of the export proceeds with aggregate value of Rs. 14,78,565/- which had not been received within the stipulated period of six months in India in convertible foreign exchange as required under law. The assessee submitted that the buyer Raja Foods Chicago had sent the remittances which were not traceable by bankers. The assessee was in regular touch with the bankers to trace the payment received. Since the remittances had been received in India, assessee should be allowed deduction under section 10....

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....he Tribunal. 2.2 Before us the ld. AR reiterated the submissions made before lower authorities that the remittances had been received by the bankers in India and, therefore, the statutory requirement was fulfilled and claim should be allowed. He referred to the copy of certificate dated 24.1.2012 issued by SBI to point out that DD issued by foreign party was dated 13.11.2006 which had been received by bankers and therefore, claim should be allowed. He, also reiterated the alternate claim that disallowance if any should be limited to net profit from the remittances and not the entire remittances. 2.3 The ld. DR on the other hand submitted that bank certificate did not prove that the remittances had been credited in the account of the banke....

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.... assessee is that the foreign remittances had been sent by the foreign buyer to the banker who misplaced the same and, therefore, since remittances were received in India, claim of deduction should be allowed. In our view unless the foreign remittances are credited in the account of assessee or at least credited in the account of the bank, it cannot be said that the export proceeds have been received in or brought into India. The assessee has placed on record a certificate dated 24.1.2012 from State Bank of India which only states that the proceeds of the foreign remittances had been credited to the account of the assessee on 20.1.2011. The certificate does not even state that the foreign remittances had been credited in the account of the ....

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....ecision of the AO and submitted before CIT(A) that though 50% of subsidy had been received in the next year the assessee had made provision for the entire amount in this assessment year. Assessee referred to the Accounting Standard-12 issued by ICAI as per which only capital subsidy received relating to specific assets is required to be reduced from the assets and no general subsidy. It was pointed out that the assessee had not received subsidy towards any specific asset and, therefore, the same could not be reduced from the asset. CIT(A) noted from the letter dated 22.12.2006 of Ministry of Food Processing Industry that capital subsidy had been given for setting of unit for ready-to-eat foods at Gandhidham, Gujarat. CIT(A) also observed th....