HIGH COURT OF JUDICATURE AT HYDERABAD FOR STATE OF TELANGANA AND STATE OF ANDHRA PRADESH PRESENT HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.658 OF 2014 DATED: 14.11.2014 Between: Commissioner of Income Tax-III Appellant and Semantic Space Technologies Limited Respondent HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.658 of 2014 JUDGMENT: (per Hon ble Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is directed against judgment and order of learned Tribunal dated 07.03.2012 in relation to assessment year 2006-07 on following suggested questions of law. i. In facts and circumstances of case, whether Hon ble Tribunal (ITAT) is correct in law in upholding orders of learned Commissioner of Income Tax (Appeals) to include miscellaneous income, credit balances written back and notice period salary for purpose of determination of exemption under Section 10A of Act, when said amounts were not derived from industrial undertaking of Respondent assessee as required in law? ii. In facts and circumstances of case, whether Hon ble Tribunal (ITAT) is correct in law in upholding orders of learned Commissioner of Income Tax (Appeals) to consider gain on account of foreign exchange fluctuations for purpose of computation of claim of Respondent assessee under Section 10A of Act? We have heard Mr. B.Narasimha Sarma and gone through impugned judgment and order of learned Tribunal. It appears that learned Tribunal took note of fact that identical issue for assessment year 2005-06 was decided by Tribunal in favour of assessee. Tribunal relied on decision of Mumbai Bench of Tribunal in case of EXTRUSION PROCESSES (P) LTD v. [1] ITO , and decided issue in favour of assessee. Tribunal also dealt with aspect of notice period salary and took decision thereon in favour of assessee relying on decision of Hon ble Supreme Court in case of [2] LAKSHMI MACHINE WORKS . We therefore dismiss appeal. There shall be no order as to costs. K.J. SENGUPTA, CJ 14th NOVEMBER, 2014. SANJAY KUMAR, J kvni [1] (2007) 106 ITD 336 [2] 290 ITR 667 Commissioner of Income-tax-III v. Semantic Space Technologies Limited