2014 (1) TMI 1828

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....arising in this appeal is the validity of the disallowance of the deduction u/s.10A of the Act at Rs. 37,82,201/-. The same stood made in view of the fact that a part (i.e., Rs. 11.51 crores) of the export proceeds had not been realized within six months from the end of the relevant previous year; in fact, having not been received even by the date of the audit report for the relevant year (29.11.2003), so that the condition of section 10A(3) stood breached. The ld. CIT(A), however, allowed relief to the assessee on the production of a letter from the Reserve Bank of India (RBI), clarifying that no time limit stood prescribed for realization of the export proceeds for export units located in Special Economic Zones (SEZs). 3. Before us, the ....

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....this behalf. Explanation 1.-For the purposes of this sub-section, the expression "competent authority" means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange. Explanation 2.-The sale proceeds referred to in this sub-section shall be deemed to have been received in India where such sale proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India.' It is thus clear that the law does not provide an inflexible condition in the matter; leaving it to the competent authority, the RBI, whose decision, besides being binding on th....

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....t has been decided to extend the following facilities to the units located in the Special Economic Zones (SEZs): A. Realisation of export proceeds In terms of para 11(c) of AP (DIR Series) Circular No.28 dated March, 30, 2001, units situated in Special Economic Zones have been permitted to realize and repatriate to India the full value of goods or software within a period of twelve months from the date of export. It has now been decided to remove the stipulation of twelve months or extended period thereof for realization of export proceeds. Accordingly, there shall be no prescription of any time limit for realization of exports made by units in SEZs. However, the units in SEZs will continue to follow the GR/PP/SOFTEX export procedure ou....