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TMI Blog2015 (10) TMI 2103X X X X Extracts X X X X X X X X Extracts X X X X ..... RBI) in convertible foreign exchange. Importing of any other condition such as furnishing of SOFTEX Form or obtaining of STPI clearance in the definition of 'export turnover' by the Ld. AO is completely unwarranted and against the industry practice. The legislature in its wisdom has provided a period of six months from the end of previous year for such collection. Thus, the procedural compliance in the course of collection of such export proceeds i.e. furnishing of SOFTEX Form in accordance with Para 6.C.3.1 and certification by STPI authority in accordance with Para 6.C.3.2 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 within the stipulated period six months from the end of the financial year should no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from total turn is approved by the Hon‘ble Bombay High Court in the case of CIT Vs. Gemplus Jewellery India Ltd., [2010 (6) TMI 65 - BOMBAY HIGH COURT ] and also by Special Bench of ITAT in ITO Vs. Saksoft Ltd [2009 (3) TMI 243 - ITAT MADRAS-D]. - Decided in favour of assessee. - I.T.A. No. 49/HYD/2014 - - - Dated:- 31-8-2015 - SMT. P. MADHAVI DEVI AND SHRI B. RAMAKOTAIAH, JJ. For The Assessee : Shri Arun Chhabra and Shri Vaibhav Gupta, ARs For The Revenue : Shri Rama Krishna, Bandi, DR PER B. RAMAKOTAIAH, A.M. : This is an assessee s appeal against the order of the Commissioner of Income Tax (Appeals)-V, Hyderabad dated 23-09-2013 for the AY. 2010-11. 2. During the year under consideration, assessee was primarily e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r held that assessee is at liberty to claim the amount of ₹ 1.48 Crores in the export turnover of the subsequent FY. i.e. 2010-11 for AY. 2011-12. Aggrieved, assessee preferred the present appeal raising four grounds. 6. Ground Nos. 1 4 are general in nature. Ground No.3 pertaining to disallowance of depreciation on certain used Fixed Assets of ₹ 4,83,158/- was not pressed. 7. Ground No. 2 is on the denial U/s. 10A on turnover of ₹ 1,48,72,171/- by the AO while calculating the deduction U/s. 10A. Ground No. 2.2 is an alternate claim that if the above amount is excluded from the export turnover, the same should also be reduced from the total turnover. 8. After considering the rival contentions and perusing the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f six months from the end of the previous year or, within such further period as the competent authority may allow in this behalf. From above, one can clearly infer that the only condition for software exported from India to be considered in an year is receipt of consideration of sales proceeds within six months from the end of previous year (or within period extended by RBI) in convertible foreign exchange. Importing of any other condition such as furnishing of SOFTEX Form or obtaining of STPI clearance in the definition of 'export turnover' by the Ld. AO is completely unwarranted and against the industry practice. 10. Further, Section 7 of The Foreign Exchange Management Act, 1999 provides for furnishing of a declaration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h services. 11. The Reserve Bank of India in exercise of the powers conferred by clause (3) of section 7 of the Foreign Exchange Management Act, 1999, notified software export declaration requirements in Para 6 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000. The relevant regulations are extracted herein below: 6. Authority to whom declaration is to be furnished and the manner of dealing with the declaration: C. Declaration in Form SOFTEX (3) (i) The declaration inform SOFTEX in respect of export of computer software and audio/video/television software shall be submitted in triplicate to the designated official of Department of Electronics of Government of India at the Software Tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... software made in FY 2009-10 to be treated as 'export turnover' of the subsequent year i.e. FY 2010-11. 14. Considering the above, we are of the opinion that exports made vide invoice dt. 31-03-2010 has to be considered as part of the turnover of this year and AO s action in excluding the same cannot be supported either on facts or on law. As stated earlier the proceeds of this invoice was already received during the year as advance. So the furnishing of form under FEMA is only a formality. Therefore, AO is directed to include the turnover and allow the deduction accordingly. 15. Ground No. 2.2 is on the alternate claim that if the invoice which was raised on 31-03-2010 was excluded the same should also be excluded from the tot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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