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TMI Blog2010 (6) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 10A of the Act, the assessee has to receive the foreign exchange in India within six months. However, the Reserve Bank of India is empowered to extend the period of realization of export proceedings beyond six months. The Reserve Bank of India has further delegated its powers to the authorized dealers in foreign exchange to extend the period beyond six months. The Reserve Bank of India made this delegation by a Circular dated 1-11-2004 and applicable in respect of exports made on or after 1st Sept. 2004. According to the learned representative for the department for the assessment year under consideration only Reserve Bank of India was empowered to grant extension and therefore the claim made by the assessee to the authorized dealers i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed by the assessee. The learned representative for the assessee has also placed reliance on the decision of Delhi I Bench of the Tribunal in the case of DCIT vs. Interra Software (India) Pvt. Ltd. (2007) 112 TTJ (Del) 982 and submitted that when the assessee brought the foreign exchange into India within the extended period and the same is eligible for deduction under section 10A of the Act. The learned representative for the assessee again placed reliance on the judgment of Gujarat High Court in the case of CIT vs. Dhatu Sanskar (P) Ltd. (2007) 292 ITR 135 (Guj.) and submitted that when the application was not disposed off or it was not informed about the rejection of the application, the assessee was well within its rights to entertai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brought the sale proceeds to India in foreign currency after expiry of six months period. It is also not in dispute that the assessee has made application for extension of time before the authorized foreign exchange dealer viz., City Bank. The contention of the assessee is that the assessee has not received any communication about the application filed by the assessee either from the City Bank or Reserve Bank of India. In such circumstances, the CIT (A) directed the assessing officer to verify the stage of application and in case the extension as sought for by the assessee was granted, the assessee's claim may be allowed. The main contention of the learned Departmental Representative is that during the assessment year under consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erve Bank of India. Therefore, the application filed by the assessee has to be considered in accordance with law by the concerned authority who is empowered to do so. The decision taken on such application has to be communicated to the assessee also. However, in the case before us though admittedly the assessee filed an application for extension of time, the decision taken thereon was not communicated to the assessee so far. Therefore, we cannot blame the assessee for claiming the deduction under section 10A of the Act. In such circumstances, the CIT (A), in our opinion, has rightly directed the assessing officer to verify with City Bank/Reserve Bank of India to find out whether extension sought for by the assessee was granted or not. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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