Tribunal held, that the foreign exchange remittances had been received and credited to the assessee’s account. Notwithstanding the fact that there was no express order granting approval by the authorised bankers extending the time limit of six months for receipt of foreign remittances on account of export sales, the assessee was entitled to the benefit of exemption under S. 10A and consequently, the AO was directed to include those amounts, though realised belatedly, in the export turnover while computing the exemption under S.10A of the Act. The Tribunal also held that the disallowance of expenses had been made under section 40(a)(i) towards non-deduction of tax at source and such disallowance automatically enhanced the taxable income of the assessee. As a result, the assessee was entitled to exemption under section 10A on such enhanced income. (AY. 2010-11, 2011-12)
DCIT v. Tecnotree Convergence Ltd. (2019) 75 ITR 505/ ( 2020) 205 TTJ 561 (Bang.)(Trib.)
S. 10A : Free trade zone–Export sale proceeds not received in India in foreign exchange within time specified-Assessee seeking extension of time-No extension of time allowed after period of six months from end of year and application not rejected—Amounts includible in export turnover though received belatedly-Disallowance of payments for failure to deduct tax at source enhancing taxable income of assessee—Entitled to exemption on enhanced income. [S. 40(a)(ia)]