2005 (12) TMI 58

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.... circumstances of the case and in law, the Tribunal was justified in holding that the issue was squarely covered by the decision of the jurisdictional High Court in the case of Hindustan Trading Corporation v. CIT [1986] 160 ITR 15 (Guj) when the issue before the High Court in the said case was totally different? (C) Whether, on the facts and in the circumstances of the case, and in law, the Tribunal was justified in holding that 'any other receipt of a similar nature' as mentioned in Explanation (baa) to section 80HHC(4B) would not include receipt on account of exchange rate difference?" After hearing Mr. M.R. Bhatt, learned senior standing counsel for the appellant, on November 15, 2005, notice had been issued to the respondent and ....

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....iance on various other decisions of different Benches of the Tribunal. Assailing the impugned order of the Tribunal, Mr. M.R. Bhatt, learned senior standing counsel for the appellant, placed reliance on Explanation (baa) to section 80HHC of the Act to submit that profits of the business have to be computed and understood as provided in the said clause of the Explanation and no other receipts can be treated as profits of the business. It was further submitted that even if the said receipt, received on account of exchange rate difference, has been shown under the head "Profits and gains of business or profession", the same has to be reduced as required by sub-clause (1) of clause (baa) of the Explanation as it amounts to "any other receipt....

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....n (2) of section 80HHC of the Act, sale proceeds of goods or merchandise exported out of India and received in convertible foreign exchange become entitled to the deduction subject to fulfilment of other requisite conditions. Clause (a) of sub-section (2) of section 80HHC of the Act provides that such sale proceeds have to be 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. Thus, a plain reading of the provision makes it clear that once the competent authority has extended the time, in a case where it is necessary, or, where the sale proceeds have been received within a period of six months from the end....