TaxTMI 
TaxTMI 
2015 (6) TMI 1025
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.... justified in law in allowing deduction to the assessee under section 80HHC of the Income-tax Act, 1961 on that position of the export sale proceeds which was not brought or received by it in India in convertible foreign exchange within the period stipulated under section 80HHC(2) of the Income-tax Act and even no extension of time was granted by the competent authority (Reserve Bank of India) ?" 3. In the instant case M/s. Asha Trading Co. is the assessee. During the relevant assessment year, i.e., 2001-02, the Assessing Officer found that the assessee had received payments in foreign currency amounting to Rs. 10,70,793, beyond the due date as specified under section 80HHC(2)(a). The Assessing Officer sought clarification as to whether ....
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....After making this application, the due amount was received from the party on November 26, 2001, i.e., within the time limit sought for from the Reserve Bank of India. The Reserve Bank of India in its reply dated December 28, 2001 stated that on December 1, 2001, the date, till which extension was sought, had already expired. Therefore, if the exporter had already received the payment then the exporter should submit BRC against the above sale bill and if the money has not been received till date then the exporter should be advised to apply for further extension. When the assessee received this letter from the Reserve Bank of India dated December 28, 2001, it had already received the payment, therefore, it did not apply for any further extens....
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....e Revenue that the amount was already received by the assessee on November 26, 2001 and thus there was only a marginal delay in the actual receipt of amount after the end of six months. As per provision of section 155(13) where in the assessment for an year the deduction under section 80HHC income has not been received in convertible foreign exchange in India and subsequently such income or part thereof has been or is received in India in the manner prescribed, the Assessing Officer shall amend the order of assessment so as to allow the deduction under section 80HHC in respect of such income which is brought into India and the provision of section 154 shall so far as may, apply thereto and the period of four years shall be reckoned from the....
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....ds of such goods or merchandise exported out of India are received in, or brought into, India by the assessee (other than the supporting manufacturer) in convertible foreign exchange within a period of six months from the end of the previous year or, within such further period as the competent authority may allow in this behalf." (emphasis supplied) 8. As seen, under the said section deduction in respect of the profit can be made if the amount is received in convertible foreign exchange within a period of six months from the end of the previous year or within such further period as the "Competent Authority may allow in this behalf". The assessee, through its banker, by letter dated October 30, 2001 had applied to the Reserve Bank of Indi....