2010 (1) TMI 38

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(Per Dr.D.Y. Chandrachud, J.) : 1. The appeal by the revenue arises out of the judgment of the Income Tax Appellate Tribunal dated 14th October 2008 pertaining to assessment years 2002-2003 and 2003-2004. The present appeal relates to assessment year 2002-2003. 2. The appeal is admitted on the following substantial question of law: "Whether on the facts and in the circumstances of the cas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eclared by the Supreme Court in Liberty India V/s. CIT, (2009) 317 ITR 218 (SC). This position is not in dispute before us. In the circumstances, the judgment of the tribunal to the extent to which it holds that the deduction under Section 80IB was allowable in respect of duty draw back, export entitlement and DEPB license would have to be set aside. 4. However, in so far as the question of dif....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rted remains the same but the rupee equivalent is liable to vary due to fluctuation in the rate of foreign exchange. Consequently, a book entry is made in order to ensure that the rupee equivalent of the value of the goods exported out of India is correctly reflected in the books of account, since the books are maintained in rupee terms. 5. Having heard the learned counsel appearing on behalf o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....by a Division Bench of this Court on 15th December 2009 in the case of Syntel Limited (Income Tax Appeal Nos.1974, 1976 and 1978 of 2009). In the circumstances, we would affirm the judgment of the tribunal in so far as the question of exchange rate fluctuation is concerned. 6. In the circumstances, following the judgment of the Supreme Court in Liberty India (supra), we set aside the judgment o....