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TMI Blog2013 (7) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... It could also not be inferred from the Balance Sheet and Profit & Loss Account of the assessee, that exchange gain emanated from any other source or any other funds parked else where. DR, also, could not apprise as to how the exchange gain was detached from export proceeds or how the decision of Changepond Technologies (P) Limited. Vs ACIT [2008 (2) TMI 486 - ITAT MADRAS-A] could not be relied upon. It has also not been shown by the revenue authorities that the export proceeds were not received within the stipulated period, i.e. the last day of the previous year. Thus the gain recorded by the assessee on receipts of foreign exchange as export proceeds are extricably linked and are, therefore, eligible for exemption under section 10A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income from business, as the impugned gain, as per the assessee, is linked directly to the exports of the assessee. 3. The assessee is engaged in the business of Engineering Software Development and Consultancy. In the year under consideration the assessee returned income showing receipts on account of export of software. In its accounts, the assessee declared income of Rs. 4,67,849/- being gain on exchange fluctuation/difference. 4. In the proceedings before the AO, the assessee explained its business and how it claimed exemption under section 10A of the Income Tax Act. The AO, after considering the facts and submissions of the assessee placed reliance on the decision of the coordinate Bench at Delhi in the case of Convergys India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Audit Report in Form 56F dated 05/09/2009 have been submitted [Section 10A( 5)). 7. It is not formed by splitting up, or the reconstruction, of a business already in existence. 8. It is not formed by transfer to a new business of machinery or plant previously used for any purpose. 9. The company is assessed under section 143(3) for the Assessment Year 2004-2005 as per order dated 31.01.2006 wherein deduction under section 10A has been granted". The AR also referred to the detail of export proceeds amounting to Rs. 4,82,13,669/- (APB 56). 8. The AR placed reliance on the decision of coordinate Bench at Chennai in the case of Changepond Technologies Pvt. Ltd. vs ACIT, reported in 22 SOT 220 (Chennai) (copy placed on record), wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e heard the arguments of both the sides and are of the view that the revenue authorities did not look into the account of the assessee, which were placed before them. It is noted that in the year under consideration only two items have been shown as income in the Profit Loss Account (besides nominal amount of Rs. 283/- as interest), which are export proceeds of Rs. 4,82,13,669/- and exchange difference of Rs. 4,67,849/- (impugned amount). It is not the case of the revenue authorities that the conception of exchange difference is not from export proceeds, but from some other source. It could also not be inferred from the Balance Sheet and Profit Loss Account of the assessee, that exchange gain emanated from any other source or any other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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