TaxTMI 
TaxTMI 
TaxTMI 
2015 (3) TMI 54
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....ment was completed u/s143(3) of the Act. Subsequent to the completion of the assessment, the CIT-IV Hyderabad observed that the inward foreign remittances u/s 10A(3) should be received by the assessee within six months from the end of the previous year or within such further period as the competent authority may allow the assessee company to bring the foreign exchange into India and that the assessee company did not receive foreign excchange within the time stipulated u/s 10A(3). A show cause notice u/s 263 dated 29.11.2012 was issued to the assessee company by the CIT-IV, Hyderabad. After satisfying himself the order passed by the AO was erroneous and prejudicial to the interest of the Revenue, in exercise of powers vested u/s 263 the CIT ....
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....85, dated 29-03-2007 equivalent to INR 15 crores the same was received beyond the stipulated period of 6 months as stipulated u/s 10A(3) and for remittances beyond 6 months the assessee company needs to take the specific approval of RBI. 5. b. It was explained that though the sale proceeds of Rs. 15 crores was not received within 6 months the same was received within 12 months from the date of export. The relevant portion of Circular No. 25 of RBI dated 01-11-2004 was reproduced which clearly states that Export Oriented Units (EOU's) will be allowed to realise and repatriate the full value of "export proceeds within a period of twelve months from the date of export. However, the CIT (IV), Hyderabad in his order vide para no. 7 observed....
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....at they are authorized by RBI under sub section (1) of Section 10 Foreign Exchange Management Act 1999 (FEMA) as authorized person. HDFC in their letter dated 4th May 2012 vide letter No. HYD/WBO/TF/434/2012-13 confirmed that the export proceeds has been received as per Notification No. FEMA/23/2000-RBdated3rd May 2000. HDFC Bank vide their letter dated 14th February 2013 and 1st March 2013 have stated that they are authorised by RBI under sub section (1) of Section 10 to deal in foreign exchange or foreign securities as per FEMA Act 1999. RBI has notified under FEMA (Export of Goods and Services) Regulations 2000 relating to export of goods and services from India. The realisations have taken place as per RBI guidelines vide its circular ....
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....rvices Ltd vs. DCIT (2013) 35 Taxmann 146 (Bang) wherein an identical issue has been considered by the ITAT and it has been held that the RBI circular No.25 allows the assessee to repatriate the export earning within one year and if that is done as per the circular, then those exports are not to be excluded for the purpose of section 10A. It was concluded by the CIT (A) that the decision of the ITAT is applicable to the case of the assessee because the facts are very similar. The CIT(A) held that the current case the export profits have been repatriated into India within one year, though it is later than six months. The CIT(A) following the decision of the ITAT held that the amounts in question, are not to be reduced from the export turnove....
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....orized by RBI u/s (1) of section 10 Foreign Exchange Management Act, 1999 (FEMA) as authorized person. Confirmation was provided by the authorized dealer i.e. HDFC Bank that the realization and repatriation of the remittances of Rs. 15.00 crores was permitted by RBI under notification No.FEMA/25/2000-RB dated 3.5.2000 to be brought into India within 12 months from the date of export. The proceeds have been brought into India within extended time stipulated by RBI and hence, the issue is squarely covered by the decision of Coordinated Bench of the Tribunal. Further, as seen from the record, the assessee has received the amount within the permitted period by the competent authority. Accordingly, the order of the AO is not prejudicial to the i....