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TMI Blog2006 (9) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... al were recalled for adjudication, as no order thereon was passed. That is how, this appeal before us. 2. Ground Nos. 4 and 5 are reproduced below for the sake of ready reference : "4. That the learned CIT (Appeals) has erred in upholding the exclusion made by the DCIT (Assessment) of the exchange rate fluctuation proceeds amounting to Rs. 3,89,964 from the total turnover, whereas the same was received by the assessee within the period stipulated under the sub-section (2)(a) of section 80HHC of the Income-tax Act, 1961. 5. That the learned CIT (Appeals) has erred in not directing deletion of interest under sections 234B and 234C of the IT Act." 3.1 The assessee claimed deduction under section 80HHC on a sum of Rs. 3,89,964, representing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the deduction under these sections, the taxpayer will be required to bring into India the sale proceeds within a period of six months from the end of the previous year or within such extended period as the Chief Commissioner of Income-tax may allow on being satisfied with the taxpayer and was prevented from complying with this requirement for reasons beyond his control. The learned counsel further pointed out that the books of account were maintained taking into account rule 115 of the IT Rules, 1962, which provides that the rate of foreign exchange for calculation of value in rupees of any income accruing or arising or deemed to accrue or arise to the assessee in foreign currency received or deemed to be received by him on his behalf in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expediency is, in our considered view, alien to it. To import the said conceptions would not only pave the path of uncertainty but also create an atmosphere of an incurable anomaly. 3.4 We have considered the facts of the case and rival submissions. Sub-section (2) contains the conditions precedent for grant of deduction under section 80HHC. Two preconditions have been described, namely, that (i) the section applies to all goods and merchandise other than those specified in clause (b) of the sub-section, and (ii) the sale proceeds of such goods or merchandise exported out of India are received in, or brought into India, by the assessee within six months from the end of the previous year or within such further period as may be allowed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e books for the assessment year 1990-91 in respect of the foreign currency receivable, on which deduction under section 80HHC had been allowed and therefore, nothing remains to be done in this matter in the current assessment year. 3.5 In the result, the ground No. 4 of the appeal of the assessee is dismissed. 4.1 Ground No. 5 is against the finding of the learned CIT (Appeals) that the interest under sections 234B and 234C was rightly charged by the Assessing Officer. Before him, it was represented that objection raised for charging of interest was consequential in nature. Therefore, he directed the Assessing Officer to modify the amount of interest while giving effect to his order, if so necessitated. 4.2 Before us, the learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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