SHRI. HARESH ROCHIRAM DUHLANI, MUMBAI v. THE DY.C.I.T.14(2), MUMBAI

ITA 3753/MUM/2009 | 2002-2003
Pronouncement Date: 20-04-2010 | Result: Allowed

Appeal Details

RSA Number 375319914 RSA 2009
Bench Mumbai
Appeal Number ITA 3753/MUM/2009
Duration Of Justice 10 month(s) 9 day(s)
Appellant SHRI. HARESH ROCHIRAM DUHLANI, MUMBAI
Respondent THE DY.C.I.T.14(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 20-04-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted H
Tribunal Order Date 20-04-2010
Date Of Final Hearing 15-04-2010
Next Hearing Date 15-04-2010
Assessment Year 2002-2003
Appeal Filed On 10-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH MUMBAI BEFORE SHRI R.S. PADVEKAR (JM) AND SHRI RAJENDRA S INGH(AM) ITA NO.3753/M/2009 ASSESSMENT YEAR 2002-03 SHRI HARESH ROCHIRAM DUHLANI THE DCIT 14(2) MUMBA I C/O. SURESH N. OTWANI 305 ADAMJI BUILDING 413 KATHA BAZAR MUMBAI 400 009. APPELLANT RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI K.K. MAHAJAN O R D E R PER RAJENDRA SINGH (AM) : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 29.8.2006 OF CIT(A) FOR THE ASSESSMENT YEAR 2002-03 . THE ONLY DISPUTE RAISED BY THE ASSESSEE IN THIS APPEAL IS WHETHER THE AMOUN T ON ACCOUNT OF EXCHANGE RATE DIFFERENCE RECEIVED AFTER THE STATUTORY PERIOD SHOULD BE INCLUDED IN THE TOTAL TURNOVER OR NOT. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE FOR THE RELEVANT YEAR HAD RECEIVED A SUM OF RS.2 10 656/- ON ACCOUNT OF EXCHANGE RATE DIFFERENCE IN RELATION TO THE SALE PROCEEDS OF THE GOODS EXPORTED. THE AMOUNT HAD BEEN RECEIVED AFTER THE STATUTORY PERIOD. HOWEVE R THE ASSESSEE HAD CLAIMED DEDUCTION IN RELATION TO THE SAID AMOUNT WH ICH HAD BEEN ALLOWED IN THE ORIGINAL ASSESSMENT. SUBSEQUENTLY THE ASSESSMENT W ERE REOPENED AND THE AO I.T.A.NO.3753/M/09 2 EXCLUDED THE SUM OF RS.2 10 656/- FROM THE EXPORT T URNOVER. HOWEVER THE SAME WAS INCLUDED BY HIM IN THE TOTAL TURNOVER WHIL E COMPUTING DEDUCTION UNDER SECTION 80HHC. IN APPEAL CIT(A) OBSERVED THAT T HE SUM OF RS.2 10 656/- ON ACCOUNT OF EXCHANGE DIFFERENCE RELATING TO THE G OODS EXPORTED DURING THE YEAR HAD TO BE TAKEN AS PART OF EXPORT TURNOVER. BU T SINCE THE SAME HAD BEEN RECEIVED AFTER THE STATUTORY PERIOD IT HAD BEEN RI GHTLY EXCLUDED BY THE AO FROM THE EXPORT TURNOVER ACCORDINGLY HE UPHELD THE ORDER OF THE AO AGGRIEVED BY WHICH THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL . 3. BEFORE US NO ONE APPEARED ON BEHALF OF THE ASSES SEE TO REPRESENT THE CASE THOUGH THE NOTICE HAD BEEN GIVEN WELL IN TIME. WE THEREFORE PROCEED TO DECIDE THE APPEAL ON THE BASIS OF MATERIAL AVAILABL E ON RECORD AND AFTER HEARING THE LEARNED DR WHO PLACED RELIANCE ON THE ORDER OF THE AO. 4. WE HAVE PERUSED THE RECORDS AND CONSIDERED THE M ATTER CAREFULLY. THE LIMITED DISPUTE AS IS CLEAR FROM THE GROUND OF APPE AL IS WHETHER THE SALE PROCEEDS ON ACCOUNT OF RATE DIFFERENCE RECEIVED AFT ER THE STATUTORY PERIOD COULD BE INCLUDED IN THE TOTAL TURNOVER. IN THIS CASE THE ASSESSEE HAD RECEIVED A SUM OF RS.2 10 615/- ON ACCOUNT OF EXCHANGE RATE DIFFER ENCE RELATING TO THE GOODS EXPORTED DURING THE YEAR. BUT SINCE THE AMOUNT HAD BEEN RECEIVED AFTER THE STATUTORY PERIOD THE SAME HAD BEEN EXCLUDED BY THE AUTHORITIES BELOW FROM EXPORT TURNOVER. THE CLAIM OF THE ASSESSEE IS THAT SINCE THE AMOUNT HAD BEEN EXCLUDED FROM THE EXPORT TURNOVER THE SAME SHOULD A LSO BE EXCLUDED FROM THE TOTAL TURNOVER. WE FIND THE PLEA OF THE ASSESSEE RE ASONABLE BECAUSE ONCE THE AMOUNT HAS BEEN EXCLUDED FROM THE EXPORT TURNOVER I T HAS ALSO TO BE EXCLUDED FROM THE TOTAL TURNOVER. THE AO IS THEREFORE DIRECT ED THAT WHILE COMPUTING DEDUCTION UNDER SECTION 80HHC HE WOULD EXCLUDE THE SU M OF RS.2 10 656/- I.T.A.NO.3753/M/09 3 FROM THE TOTAL TURNOVER ALSO WHILE COMPUTING THE DE DUCTION UNDER SECTION 80HHC. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED. 5. THE ORDER WAS PRONOUNCED IN OPEN COURT ON 20.04 .2010. SD/- SD/- ( R.S. PADVEKAR) (RAJEN DRA SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE : 20.04.2010 AT :MUMBAI