TaxTMI 
TaxTMI 
2019 (9) TMI 912
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....stances of the case. 2. The Ld. CIT(A) erred in holding that the correct figure not realized within twelve months from the end of the previous year is Rs. 4,23,73,388/-and all the other export receipts are within the time permitted by the RBI and there shall be no exclusion from the eligible deduction computed u/s 10A of the Act while the assessee himself at sl.no.8 of the Grounds of Appeal submitted before the CIT(A) has admitted that the proceeds received beyond 12 months period is Rs. 16,36,53,777/- and has prayed that these may be allowed as an export turnover. 3. The Ld.CIT(A) ought to have appreciated the fact that as per RBI (Competent Authority in this regard) circular dtd. 3.6.2008, the Foreign Inward Remittances which are received within a period of one year from the date of export will stand qualified for the purpose of eligible remittances and the details submitted by the assessee company relating to revised claim of Rs. 4,23,73,388/- are only FIRCs which have deficiency of mention of the relevant effective date of invoices raised. 4. The Ld.CIT(A) ought to have held that the export proceeds unrealized within 12 months from the year end amounting to Rs. 16,36,53,7....
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....sessee u/s. 10A because for computing this deduction, the AO has reduced the amount of Rs. 65,17,33,720/- from the export turnover but it has not been reduced from the total turnover and as per the directions of ld. CIT(A), he directed the AO to reduce this amount from total turnover also. As per the judgment of Hon'ble Karnataka High Court rendered in the case of CIT Vs. Tata Elxsi Ltd. (supra) it was held that total turnover is sum total of export turnover and domestic turnover and if an amount is reduced from export turnover then the total turnover also goes down by the same amount automatically. Since the direction of ld. CIT(A) on this issue is in line with this judgment of Hon'ble Karnataka High Court, we decline to interfere in the order of ld. CIT(A) on this issue. Accordingly ground nos. 5 and 6 of the revenue's appeal are rejected. 5. Regarding ground nos. 2, 3 and 4 of revenue's appeal, it was submitted by ld. DR of revenue that the decision of ld. CIT(A) on this aspect of the matter is as per para no. 4 on page nos. 5 and 6 of his order. She pointed out that as per this para, ld. CIT(A) has followed the Tribunal order rendered in the case of ACIT Vs. Tara Jewel....
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....voices were already realized by assessee before 28.02.2013 being the date of letter from RBI. Therefore, those invoices were not noted in this letter but extension stands granted regarding those invoices also. At this juncture, the ld. DR of revenue pointed out that as per the Note on page no. 26 of the paper book being the letter of RBI dated 28.02.2013, it has been specified that this communication is issued from the Foreign Exchange angle under the provisions of FEMA and should not be construed to convey the approval by any other Statutory Authority or Government under any other laws/legislations. She pointed out that as per the provisions of section 10A of the IT Act, as per sub-section (3) of section 10A of the IT Act, the extension of time should be authorized by the competent authority for the purpose of section 10A of the IT Act. She submitted that since this extension is only for FEMA purpose, this extension cannot be considered for the purpose of section 10A of the IT Act. 7. We have considered the rival submissions. First of all, we reproduce para 4 from the order of ld. CIT(A) because ld. CIT(A) has decided this issue as per this para of his order. This para reads as u....
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....date of export and hence, it has to be seen as to whether the amount of export in question was received in India in foreign currency within the period of 12 months from the date of export. There is no finding available in the order of ld. CIT(A) on this aspect. The working of this amount of Rs. 4,23,73,388/- is also not available before us in the paper book and hence, we feel it proper to restore this aspect of the matter back to the file of ld. CIT(A) for fresh decision with the direction that he should determine the actual amount of export proceeds not received within 12 months from the date of export. Regarding the extension granted by RBI also, he should examine the copy of request made by the assessee for obtaining such extension of time and the actual permission granted by the RBI because we find that the permission of RBI brought on record by the assessee available on page 26 to 27 of the paper book is regarding USD 4,590,641.00 and it includes invoices for both years i.e. Assessment Years 2011-12 and 2012-13. On page no. 4 of the paper book is the detail regarding outstanding amount as on 31.03.2012 of Rs. 4,23,73,388/- but there is no invoice date available in this stateme....
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.... the time of hearing, it is humbly prayed that the order of the Ld.CIT(A) be reversed and that of the Assessing Officer be restored. 7. The appellant craves leave to add, to alter, to amend or delete any of the grounds that may be urged at the time of hearing of appeal." 11. It was submitted by ld. DR of revenue that ground nos. 1, 6 and 7 are general and hence, we hold that no adjudication is called for regarding these three grounds. 12. Regarding ground nos. 2, 3 and 4, it was submitted by ld. DR of revenue that in respect of these three issues, i.e. regarding disallowance u/s. 14A and regarding deletion of disallowance of foreign exchange gain / loss, ld. CIT(A) has restored the matter back to the file of AO as per para nos. 7 and 8.2 to 8.4 of his order. She submitted that since the ld. CIT(A) cannot restore back the matter to the AO, his order is not sustainable and the same should be set aside and the order of AO should be restored. Regarding ground no. 5, she submitted that this issue is decided by ld. CIT(A) as per para no. 9 of his order. She submitted that after the insertion of block of asset concept, the block of assets will get reduced only on sale of asset or on d....
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....monetary assets are reported using closing rate. It is the contention of the appellant that there was foreign exchange gain/loss of Rs. 12,49,25,403/-. He has provided details concerned with this loss and also correspondence as proof of writing off of bad debts. It has been submitted that the AO can verify this. Prima facie contention appears to be correct. The AO may verify the figures and details given by the appellant and accordingly allow the loss." 14. From the above paras, it is seen that ld. CIT(A) has restored back both the matters to the file of AO for decision but now this is settled position of law that ld. CIT(A) cannot restore the matter back to the AO for fresh decision. The ld. CIT(A) should decide the issue himself and since, he has not done so, we set aside the order of ld. CIT(A) on both these issues and restore back these issues to his file for decision with the direction that he should decide the issue himself by way of a speaking and reasoned order after providing adequate opportunity of being heard to both sides. Accordingly ground nos. 2 to 4 of the revenue's appeal are allowed for statistical purposes. 15. Regarding ground no. 5 of revenue's appeal, we fin....