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TMI Blog2017 (3) TMI 1850X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefit cannot be given to an undertaking in case no foreign exchange is received or brought into India on account of exports made by it. Reference to foreign exchange policy i.e. Exim is not required when the provisions of the Act are plain and unambiguous. The grounds of appeal filed by the assessee in this regard are dismissed. As regards portion of the expenses incurred in foreign exchange towards insurance, travelling and communication is concerned, in the case of CIT vs. Tata Elxsi [ 2011 (8) TMI 782 - KARNATAKA HIGH COURT] held that the same is required to be reduced from export turnover as well as total turnover. We direct that expenses incurred in foreign exchange towards insurance, travelling and communication are to be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come and assessed income was on account of restricting deduction u/s 10B to the extent of ₹ 9,15,95,578/- as against ₹ 9,48,24,375/- claimed by the assessee on the ground that sales of ₹ 57,40,758/- were made to a domestic party which does not form part of export sales, therefore, not eligible for deduction u/s 10B and also that the expenses of ₹ 21,50,562/- incurred in foreign exchange towards insurance, travelling and communication were reduced from export turnover. The difference was brought to tax as addition. 4. On appeal before the CIT(A), the CIT(A) confirmed the addition holding that sale of products to domestic EOUs. does not entitle assessee to benefits of exemption u/s 10B. As regards deduction of expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d dealings in foreign exchange. Explanation 2.-The sale proceeds referred to in this subsection shall be deemed to have been received in India where such sale proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India. The provisions of sub-section (3) of section 10B make it mandatory that in order to invoke the beneficial provisions of section 10B, sale proceeds of an article or thing or computer software should be received in or brought into India by the assessee in convertible foreign exchange within six months from the end of the previous year or such other period as may be permitted by the Reserve Bank of India. Thus, on plain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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