Ita/116/2009 Of The Commissioner Of Income Tax v. M/S.indian Resins

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN MONDAY, THE 25TH JANUARY 2010 / 5TH MAGHA 1931 ITA.No. 116 of 2009() --------------------- ITA.1323/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: -------------------- THE COMMISSIONER OF INCOME TAX(CENTRAL),COCHIN. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/RESPONDENT: --------------- M/S.INDIAN RESINS & POLYMERS,KOLLAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 25/01/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR &P.S. GOPINATHAN, JJ. -------------------------------------------- I. T. A. No. 116 OF 2009 -------------------------------------------- Dated this the 25th day of January, 2010 JUDGMENT Ramachandran Nair, J. The question raised is whether exchange rate fluctuation receivedby the exporter should be reckoned for the purpose of determination ofdeduction of export profit under Section 80HHC of the Act. In thiscase, exchange rate fluctuation went in favour of the assessee and thedepartment's case is that the same should not be reckoned for thepurpose of determination of export profit . However, the Tribunal heldagainst the department holding that exchange rate is received on theexport sales made which qualify for deduction. Even though counselfor the revenue has relied on judgment of the Supreme Court inRAVINDRAN NAIR's case, 295 ITR 228, we do not think thatdecision stands in the way of respondent-assessee getting the benefitbecause what the Supreme Court has held is that profit that is notrelatable to export only should be excluded in the computation of eligible deduction under Section 80HHC of the Act. Consequently wedismiss the appeal. (C.N.RAMACHANDRAN NAIR)Judge. (P.S. GOPINATHAN) Judge. kk