M/s Polaris Financial Technology Limited v. The Deputy Commissioner of Income-tax, Company Circle-V(2), Chennai
[Citation -2016-LL-1004-73]
| Citation | 2016-LL-1004-73 |
|---|---|
| Appellant Name | M/s Polaris Financial Technology Limited |
| Respondent Name | The Deputy Commissioner of Income-tax, Company Circle-V(2), Chennai |
| Court | ITAT-Chennai |
| Relevant Act | Income-tax |
| Date of Order | 04/10/2016 |
| Assessment Year | 2008-09 |
| Judgment | View Judgment |
| Keyword Tags | foreign currency • export turnover • total turnover |
| Bot Summary: | In view of judgment of Madras High Court in Galaxy Granites Ltd. v. CIT 27 taxmann.com 31, according to the Ld. counsel, the unrealized export proceeds, if any, in foreign currency has to be included in the total turnover for computing deduction under Section 10A of the Act. Since the Assessing 3 I.T.A. No.13/Mds/13 Officer has excluded the sale proceeds, which was not realized from the total turnover, according to the Ld. counsel, the DRP is not justified in confirming the order of the Transfer Pricing Officer / Assessing Officer. On the contrary, Shri Anurag Sahay, the Ld. Departmental Representative, submitted that the TPO or the Assessing Officer or the DRP had no occasion to consider the judgment of Madras High Court in Galaxy Granites Ltd. the matter may be remitted back to the file of the Assessing Officer. The Madras High Court, while considering the claim under Section 80HHC of the Act, found that unrealized sale proceeds should be included in total turnover for the purpose of computing allowable deduction under Section 80HHC of the Act. As rightly submitted by the Ld. D.R., the Assessing Officer or the TPO had no occasion to consider this judgment of Madras High Court in Galaxy 4 I.T.A. No.13/Mds/13 Granites Ltd. Therefore, this Tribunal is of the considered opinion that the Assessing Officer has to first consider this judgment of Madras High Court. Accordingly, the orders of the authorities below are set aside in respect of inclusion of unrealized sale proceeds in the export turnover and remitted back to the file of the Assessing Officer. The Assessing Officer shall reconsider the issue in the light of the judgment of Madras High Court in Galaxy Granites Ltd. and thereafter decide the issue, in accordance with law, after giving an opportunity to the assessee. |