9911796707
TMI Blog2011 (8) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... tutes a deemed approval granted by the Reserve Bank of India under section 10A(3) of the Act cannot be faulted - the assessee was entitled to the deduction under section 10A of the Income-tax Act, 1961 in respect of the export proceeds realised till December, 2004 for which approval has been granted by the competent authority under FEMA, namely the RBI - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had in fact made an application to the Reserve Bank of India on 7-10-2004 seeking extension of time for realization of the export proceeds. After realization of the export proceeds in December 2004, reminder letters were again sent by the assessee to the Reserve Bank of India on 24-1-2007 and 30-3-2007 seeking extension of time for realizing the export proceeds which were already realized in December 2004. However, by a letter dated 25-4-2007, the Reserve Bank of India informed as follows : "RESERVE BANK OF INDIA www.rbi.org.in FED.MRO.CAD(EXP)/13023/2813.000/2006-07, April 25, 2007 Standard Chartered Bank (Trade Services) 90 M G Road Fort, Mumbai 400 001 Dear Sir, Realixation of Export Proceeds - M/s. Morgan Stanley Adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in that behalf. 6. The Income-tax Appellate Tribunal has held that once the assessee has applied for extension and has completed all the formalities and in response the Reserve Bank of India has taken the remittances on record, then, non-issuance of a formal letter of approval by the Reserve Bank of India cannot be held against the assessee for none of its fault. The Income-tax Appellate Tribunal has further held that in the facts of the present case, it must be held that the extension has been granted in substance and, therefore, the benefit of section 10A has to be allowed to the assessee on the ground that the extension is deemed to have been granted. 7. In our opinion, no fault can be found with the decision of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her words, once the competent authority under FEMA which regulates the payments and dealings in foreign exchange has approved realization of the export proceeds by the assessee till December, 2004, then it would meet the requirements of section 10A(3) and consequently the assessee would be entitled to the benefits under section 10A(1) of the Act. 9. Moreover, in the present case, the Reserve Bank of India which is the Competent Authority under FEMA as also under section 10A of the Income-tax Act, 1961 has neither declined nor rejected the application made by the assessee seeking extension of time under section 10A of the Act. Therefore, the decision of the Income-tax Appellate Tribunal in holding that the approval granted under FEMA consti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
