Akken Technologies Pvt Ltd.,, ... vs Assessee

This is an appeal filed by the assessee directed against the order of the CIT (A)-II Hyderabad dated 13.03.2014 passed for A.Y 2008-09 u/s 143(3) r.w.s. 147 of the I.T. Act, 1961.

2. Briefly stated the assessee company M/s Akken Technologies Ltd filed its e-return of income for the A.Y 2008-09 on 25.09.2008 admitting NIL income after claiming deduction u/s 10A at Rs.2,28,47,320. The return has been processed u/s 143(1) of the I.T. Act. The assessee had liability under the MAT provisions only. The return has been processed u/s 143(1) of the I.T. Act. Later it was rectified u/s 154 of the I.T. Act on 26.8.2010. Subsequently the proceedings u/s 147 of the I.T. Act was initiated by issue of a notice u/s 148 of the Act on 13.08.2010. Notice u/s 143(1) and 143(2) were also issued and

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the re-assessment was completed by the order dated 27.12.2011 determining the income at Rs.2,28,47,320 which was arrived at by disallowing the claim u/s 10A of the Act. The assessment was reopened on the ground that the assessee had received foreign exchange on exports after the permitted time of 30.09.2008. Hence the AO felt that the assessee was not entitled to relief u/s 10A.

3. On appeal the CIT (A) confirmed the reopening u/s 147 on the ground that the original return was processed only under section 139(1) and therefore, the reopening u/s 148 and that too within a period of 4 years is valid.

4. The next issue is regarding the disallowance of deduction u/s 10A. The assessee submitted before the CIT (A) that out of the export turnover of Rs.4,12,43,200 the sales proceeds were not received within 6 months from the end of the financial year. However, by the date of the assessment all the amounts except US$ 1,43,643 has been received. They also submitted that they could not get the letter granting permission for extension of time for receiving foreign exchange, even though they were pursuing with the authorized dealer. However, the CIT (A) did not accept the submission of the assessee and sustained the disallowance of relief u/s 10A on the ground that all the export proceeds were not received within 6 months.

5. Aggrieved the assessee is in appeal before us.

6. In the course of appellate procedings, the assessee filed letters from Citi Bank of India dated 30.12.2013, 11.03.2014 and 18.02.2014 conveying the approval for the realization of the exports. These letters could not have filed by the assessee before

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the lower authorities because the authorised dealer of Reserve Bank of India did not reply in time for being submited before the lower authorities. In this view of the matter, we admit the additional evidence in the form of letters from Citi Bank and Reserve Bank of India and remit the issue for granting relief u/s 10A to the files of the AO and direct him to recompute the relief u/s 10A taking into account the letters of approval for delayed realization of foreign exchange obtained by the assessee and furnished before us in computing relief u/s 10A. The AO will recompute the deduction permissible u/s 10A in accordance with law based on the directions, after giving reasonable opportunity to the assessee.

7. In the result, appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the Open Court on 8th April, 2015.

Sd/- Sd/- (P.M. Jagtap) (Asha Vijayaraghavan) Accountant Member Judicial Member

Hyderabad, dated April, 2015.

Vnodan/sps Copy to:

1. M/s. Akken Technologies Private Limited, 8-2-686/K/ 1 & 2, Kimtee Square, Near Reliance Digital, Road No.12, Banjara Hills, Hyderabad

2. Dy. CIT Circle 1(1) Aayakar Bhavan, Basheerbagh Hyderabad 500001

3. The CIT(A) - II Hyderabad

4. The CIT - 1, Hyderabad

5. The DR, ITAT, Hyderabad

6. Guard File

By Order

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