2015 (10) TMI 1892

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....even elaborate grounds in its appeal, however the crux of the issue is that the Assessee is aggrieved by the order of the Ld. CIT (A), who had upheld the order of the Ld. Assessing Officer by holding that interest received from EEFC deposits Rs. 9,37,942/- and Bank deposits Rs. 35251/- aggregating to Rs. 973193/- are not eligible for deduction U/s.10B of the Act since they are not derived from export of things/articles. 3. The brief facts of the case are that the assessee is accompany engaged in the business of software development and exports, filed its return of income on 30.11.2000 declaring 'Nil' income after claiming deduction of Rs. 6.28,83,715/- U/s.10B of the Act. Subsequently the assessment was reopened U/s.147 and the assessmen....

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....assessee. The relevant portion of the Tribunal order cited supra is reproduced herein below for ready reference:- 6.1. The first ground is that the lower authorities have erred in excluding the net exchange gain on Exchange Earner's Foreign Currency (EEFC) account from profits eligible for deduction under section 10A of the Act. The issue is that the assessee is permitted by RBI to keep a part of its foreign exchange earnings in foreign currency account abroad so that it can be used by the assessee for purchasing raw materials and availing other services and if not required can remit back the money to India along with interest. Interest is accrued as part of export turnover. It has nexus only with the export turnover and therefore it is ....