- (1.) Since it is submitted by Mr. Nizamuddin, learned advocate for the appellant, that notice has been served on the respondent, the learned advocate on record for the Central Government is directed to affirm and file affidavit of service in course of this week. The appeal was admitted on the following question: "Whether on the facts and in the circumstances of the case, Tribunal was justified in law in allowing deduction to the assessee under Sec. 80HHC of the Income -tax Act 1961 on that position of the export sale proceeds which was not brought or received by it in India in convertible foreign exchange within the period stipulated under Sec. 80HHC(2) of the Income -tax Act and even no extension of time was granted by the competent authority (Reserve Bank of India) -
(2.) In the instant case M/s. Asha Trading Co. is the assessee. During the relevant assessment year, i.e., 2001 -02, the Assessing Officer found that the assessee had received payments in foreign currency amounting to Rs. 10,70,793, beyond the due date as specified under Sec. 80HHC(2)(a). The Assessing Officer sought clarification as to whether the competent authority had extended the time for receiving the foreign exchange beyond the period of six months. The assessee submitted that since the letter praying for extension of the time for receiving the foreign exchange up to December 1, 2001, was not rejected, the Assessing Officer was requested to allow the deduction. However, the contention of the assessee was rejected and the deduction under Sec. 80HHC was disallowed.
(3.) Aggrieved, the assessee preferred the appeal before the Commissioner of Income -tax (Appeals). The Commissioner of Income -tax (Appeals), inter alia, held "Since specific approval has not been given it cannot be said that the Reserve Bank of India's letter can be interpreted to be an action indirectly granting approval to the appellant". Accordingly the appeal on the said issue was dismissed.;