Trigeo Image Systems P Ltd. Vs ACIT (Telangana High Court)
Conclusion: Assessee was entitled to the exemption under Section 10A as ex-post facto approval granted by the RBI, the competent authority under the Foreign Exchange Management Act, 1999, met the requirements of Section 10A(3).
Held: In the instant case, assessee, operating in a Free Trade Zone, claimed an exemption under Section 10A for the assessment year 2001-02. AO disallowed the exemption, but Commissioner (Appeals) reversed this decision, accepting the RBI’s ex-post facto approval. Tribunal, however, sided with AO. Assessee submitted that Tribunal did not take into account the subsequent letter dated 22.12.2003 issued by the Reserve Bank of India, by which Ex-post facto approval for extension of time for realization of export proceeds was granted. It was held that the competent authority under the Foreign Exchange Management Act, 1999, namely the Reserve Bank of India had granted approval in respect of export proceeds realized by assessee. Therefore, the approval granted by the Reserve Bank of India meet the requirement of Section 10A(3). Tribunal ought to have appreciated that assessee had fulfilled the requirement contained in Section 10A(3) and therefore was entitled to exemption under Section 10A.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
