- (1.) The instant appeal was admitted on the following substantial questions of law by this Court by an order dated September 4, 2002: (i) Whether in a case where export invoices are raised and realised in foreign currency, the difference between the Indian currency equivalent at the time of raising of the invoices and the Indian currency equivalent at the time of their realisation due to fluctuation in foreign exchange rates is part and parcel of the export turnover and total turnover of the business for the purposes of Section 80HHC of the Income-tax Act, 1961 ? (ii) Whether the Tribunal was justified in law in holding that the sum of Rs. 10,61,326 was not integral part of the Appellant's export-turnover/sale proceeds and its purported findings in this behalf are arbitrary, unreasonable and perverse ?
(2.) On a bare reading of the two questions as above, it appears to us that the answer to question No. 1 is depending upon the answer of question No. 2.
(3.) In this appeal, the basic question is whether a gain of Rs. 10,61,326 because of fluctuation in foreign exchange rate in the course of export of the goods can be treated to be an export turnover in order to get the benefit of exemption under Section 80HHC of the Income-tax Act (hereinafter referred to as the "said Act").;