2013 (7) TMI 313

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....tead of Rs. 44,81,941/- claimed by your Appellant. 1.1 On the facts and circumstances of the case of the Commissioner of Income Tax (Appeals) -22 erred in treating foreign exchange gain of Rs. 4,67,849/- as Income from Other sources instead of Profits and Gains of Business. The Hon. Commissioner of Income Tax (Appeals) -22 failed to appreciate that the exchange difference is in extricably linked to exports and needs to be treated as gains derived from the export of computer software and entitled to deduction under section 10A of the Income Tax Act, 1961. 1.2 On the facts and circumstances of the case the Commissioner of Income Tax (Appeals) -22 failed to appreciate that your appellant was entitled to deduction under section 10A on exc....

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....e us, the AR reiterated the submissions made before the revenue authorities and referred to the submissions made before the AO, dated 25.06.2011 (APB 53, 54), wherein, it was submitted, "3. The Company is in export of Computer Software. The company is the business of software development and IT enabled services. The activities of the company are IT enabled engineering and software development. The activities are covered as per notification No. S.0.890(E) dated 26.09.2000. 4. All receipts of the Company are in convertible foreign exchange. All receipts were received before the specified time limit of six months form the end of the financial year [Section 10A(3)]. Detailed statement showing receipts of payment in foreign exchange and th....

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....er section 10A." 9. The AR submitted that the case relied upon by the revenue authorities i.e. the case of Covergys India Services Pvt. Ltd. vs DCIT could not be relied upon because in that case it was noted, that gain as shown, was not on account of fluctuation in foreign exchange relating to export activities. He therefore, submitted that the facts being different, the case could not be relied upon. 10. The AR also emphasized that the export proceeds were received well within the stipulated period, as defined in Rule 115(1)(2)(c) of the Income Tax Rules. The AR, therefore, concluded that on neither of the situations, the exemption could be denied to the assessee. 11. The DR placed reliance on the orders of the revenue authorities....