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TMI Blog2016 (7) TMI 1181X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee submitted that the assessee is a diamond exporter and it had entered into foreign exchange forward contracts in relation to specific export invoice. The assessee earned profits upon maturity of foreign exchange contract and claimed deduction thereon u/s. 80HHC of the Act treating the same as income derived from export activity. The Assessing Officer held the same to be speculation income and accordingly denied deduction u/s. 80HHC of the Act. However, the Learned CIT(A) held the same as business income, but he held that deduction u/s. 80HHC of the Act will not be available as same does not result from export activity. 4. Learned counsel placed reliance on the decision rendered by Hon'ble Gujarat High Court in following cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iance on the decisions rendered by Hon'ble Gujarat High Court. However, as pointed out by Ld D.R, the jurisdictional Hon'ble Bombay High Court has decided this issue against the assessee in the case of Shah Originals (supra). For the sake of convenience, we extract below the relevant observations made by the Hon'ble jurisdictional High Court in the above said case:- "11. The assessee admittedly in the present case received the entire proceeds of the export transaction. The Reserve Bank of India, has granted a facility to certain categories of exporters to maintain a certain proportion of the export proceeds in an EEFC Account. The proceeds of the account are to be utilized for bona fide payments by the account holder subject to the limits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation which has arisen there from cannot be regarded as being part of the profits derived by the assessee from the export of goods or merchandise. 8. There should not be any dispute that the decision rendered by the Hon'ble jurisdictional High Court is binding on all falling within the jurisdiction of the High Court. Before us, the Ld A.R tried to distinguish the decision of Hon'ble Bombay High Court by submitting that the Hon'ble High Court was dealing with a case, where the forward contracts were cancelled prematurely, where as the in present case, the forward contracts got matured after expiry of the prescribed period. In our view, the same cannot be considered to be distinguishing feature. The Hon'ble High Court has held that the exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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