- (1.) Special leave granted.
(2.) The Commissioner of Income Tax has come up in appeal against the judgment of the division bench of the Bombay High court, quashing an order passed by the Commissioner of Income Tax under Section 263 on 30/3/1989. The High court was also of the view that clause (c) of Rule 115 of the Income Tax Rules, 1962 was in conflict with the substantive provisions of the Income Tax Act and was ultra vires the Act.
(3.) The controversy in this case is about the taxability of the amounts received by the assessee from foreign buyers during the period 1/7/1982 to 30/6/1983 (Assessment Year 1984-85. The assessee offered for assessment the amounts received as price of the goods sold to foreign buyers as and when the amounts were received in course of the accounting period and was taxed accordingly. The amounts which were not actually received from the foreign buyers in course of the accounting period were converted into rupees on the basis of the exchange rate on the last day of the accounting year i. e. 30/6/1983 and was brought to tax accordingly for the Assessment Year 1984-85.;