ACIT 4 (1), Indore V. M/s Yash Technologies P Ltd , Indore

ITA 18/Ind/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 9585 (ITAT-INDORE)
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 27-01-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 10AA

Judgement Text

अपील य अ धकरण, इ दौर यायपीठ, इ दौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI MANISH BORAD,ACCOUNTANT MEMBER AND MIS MADHUMITA ROY, JUDICIAL MEMBER Virtual Hearing ITA No.18/Ind/2021 Assessment Year:2016-17 ACIT 4(1) Indore बनाम/ Vs. M/s Yash Technologies P. ltd. , Indore (Appellant) (Respondent ) P.A. No.AAACY1868M Appellant by Shri P.K. Mitra, CIT-DR Revenue by Shri S.S. Solanki, AR, Date of Hearing: 07.12.2021 Date of Pronouncement: 28.01.2022 आदेश / O R D E R PER MANISH BORAD, A.M: The above captioned appeal at the instance of Revenue is directed against the order of Commissioner of Income Tax (Appeals) (in short CIT(A)), Indore dated 11.09.2020 which is arising out of the order u/s 143(3) of the Income Tax Act 1961(In short the ‘Act’) dated 25.12.2019 framed by DCIT-4(1) Indore. M/s. Yash Technologies Pvt. Ltd. 2 The Revenue has raised following grounds of appeal: 1.The ld. CIT(A) was not justified in not appreciating the finding and establishment of the AO that income from foreign exchange fluctuation are not eligible for exemptions u/s 10AA of the Act. 2. The Ld. CIT(A) was not justified in deleting the addition of Rs.2,28,74,126/- holding that the CIT(A) and Hon'ble I.T.A.T. have already deleted the addition in A.Y.2015-16 whereas the fact is that the issue is pending with the Hon'ble High Court of M.P. Indore for A.Y. 2014-15. In the A.Y. 2014-15 the Ld. CIT(A) had erred in deleting the addition in a summary manner that the same is business income without giving any factual finding regarding the details and nature of receipt of foreign income Fluctuation. 2. This appeal is time barred by 45 days. However, looking to the Covid-19 crises, Central Board of Direct Taxes issued notification no.35/2020 dated 24.06.2020, extending the due date of filing the appeals till 31.03.2021 and this extension was given to those cases where the due date of filing appeal was between 20.03.2020 to 31.12.2020. We, therefore, condone the delay of 45 days in filing the appeal by the revenue and admit the appeal for adjudication on merit. 3. From perusal of the grounds we find that the sole substantive issue is regarding denying of exemption u/s M/s. Yash Technologies Pvt. Ltd. 3 10AA of the Act for the income earned from foreign currency fluctuation at Rs. 2,28,74,126/-. 4. Ld. DR supported the order of Ld. AO and ld. counsel for the assessee supported the finding of ld. CIT(A). 5. We have heard rival contentions and perused the records placed before us. Revenue’s sole ground is against the finding of ld. CIT(A) deleting the addition of Rs. 2,28,74,126/- made by the ld. AO by denying the benefit of exemption u/s 10(AA) of the Act for the income earned from foreign exchange fluctuations. 6. From perusal of the finding of Ld. CIT(A) which remains controverted at the end of Ld. DR, we find that the addition of similar nature was made by the ld. AO in the preceding assessment year 2015-16 also which was deleted by Ld. CIT(A) vide its order dated 06.04.2018 and the finding of Ld. CIT(A) was confirmed by this Tribunal in assessee’s own case vide order dated 31.10.2019. Since there is no change in the finding and issue raised in the instant appeal, we respectfully following the view of this Tribunal in its dated 31.10.2019 in the case of assessee for A.Y. 2015-16 find M/s. Yash Technologies Pvt. Ltd. 4 no infirmity in the finding of Ld. CIT(A) deleting the addition and allowing the benefit of exemption u/s 10AA of the Act for the income earned from foreign exchange Fluctuation in the regular course of business carried out and the profit therefrom is exempt u/s 10AA of the Act. Grounds raised by the revenue are dismissed. 7. In the result, appeal of the revenue in ITANo.18/Ind/2021 is dismissed. Order was pronounced as per Rule 34 of I.T.A.T. Rules 1963 on 28.01.2022. Sd/- (MADHUMITA ROY) Sd/- (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore; दनांक Dated : 28 /01/2022 Patel/PS Copy to: Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/Guard file. By order Assistant Registrar, Indore