Moser Baer India Ltd. v. DCIT (2018) 170 ITD 522 (Delhi) (Trib.)

S. 10B: Export oriented undertakings – Interest from fixed deposits made with Bank for obtaining letters of credit which has direct nexus with export activities is to be includable in computing the income -Matter was remanded for verification-Insurance claim which has direct nexus with industrial undertaking are eligible for deduction . Foreign exchange gain on sale of forward exchange contract arising out of eligible undertaking is entitle to deduction . Export proceeds that were unrealized, claimed that period for realization, had been extended by RBI Master Circular dated 1-7-2005 was directed to be allowed subject to verification . [ S.10A ]

Allowing the appeal of the assessee the Tribunal held that ; Interest from fixed deposits made with Bank for obtaining letters of credit which has direct nexus with export activities is to be includable in computing the income. Matter was remanded for verification. Insurance claim which has direct nexus with industrial undertaking are eligible for deduction .Foreign exchange gain on sale of forward exchange contract arising out of eligible undertaking is entitle to deduction . Export proceeds that were unrealized, claimed that period for realization, had been extended by RBI Master Circular dated 1-7-2005 was directed to be allowed subject to verification .   ( AY.2003 -04, 2005 -06 , 2006 -07))