Case Law Details
Uni Design Jewellery Pvt. Ltd. Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that Section 10AA does not prescribe any time limit for realization of export proceeds. Hence, the benefit of Section 10AA of the Income Tax Act cannot be denied merely because the export proceeds were realized after the expiry of 6 months from the end of relevant previous year in which export sales were made.
Facts- The Appellant filed its original ROI for the A.Y. 2017–18 on 30/11/2017 declaring total income of INR 3,72,49,950/- after claiming deduction of INR 2,28,69,351/- under Section 10A of the Act. The case of the Appellant was selected for scrutiny. A.Y. completed the assessment u/s. 143(3) of the Act vide Assessment Order dated 23/04/2021. While framing the Assessing Officer restricted the amount for deduction claimed by the Appellant u/s. 10AA of the Act to INR 2,04,51,697/- since AO was of the view that the deduction u/s. 10AA of the Act could be allowed only in respect of the export proceeded realized within a period of 6 months from the end of relevant previous year.
The appeal preferred before CIT(A) against the Assessment Order was dismissed by the CIT(A) along with appeal for A.Y. 2018-19 vide common order dated 25.10.2022. Being aggrieved, the present appeal is filed.
Conclusion- We are in agreement with the above decision of the Tribunal since Section 10AA does not prescribe any time limit for realization of export proceeds, the benefit of Section 10AA cannot be denied to an Assessee merely because the export proceeds were realized after the expiry of 6 months from the end of relevant previous year in which export sales were made. In our view, in case an assessee is able to show that the consideration in respect of exports was received in India or brought into India, the deduction under Section 10AA of the Act should be allowed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
