Unrealized sale proceeds have to be excluded from export turnover as well as total turnover: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that unrealized sale proceeds have to be excluded from an export turnover as well as total turnover.The two-member bench headed by Mahavir Singh (Vice President) and G. Manjunatha (Accountant Member) has directed the AO to re-compute deduction by excluding unrealized sale proceeds from an export turnover as well as...
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that unrealized sale proceeds have to be excluded from an export turnover as well as total turnover.
The two-member bench headed by Mahavir Singh (Vice President) and G. Manjunatha (Accountant Member) has directed the AO to re-compute deduction by excluding unrealized sale proceeds from an export turnover as well as total turnover.
The assessee appealed against the exclusion of unrealized sale proceeds of Rs. 24,32,35,200 from export turnover as well as total turnover.
The assessee submitted that when unrealized sale proceeds are excluded from export turnover, then they need to be excluded from total turnover.
The tribunal, while allowing the appeal of the assessee, stated that the issue of the exclusion of expenditure, including foreign currency loss or unrealized sale proceeds, from export turnover and also from total turnover, is no longer res Integra.
The tribunal relied on the decision of the Kerala High Court in the case of CIT v. Abad Fisheries, in which it was held that unrealized sale proceeds have to be excluded from an export turnover as well as total turnover.
Case Title: M/s.Pentasoft Technologies Ltd. Versus The ITO
Citation: ITA No.1158/Chny/2011
Date: 16.11.2022
Counsel For Appellant: Advocate I. Dinesh
Counsel For Respondent: CIT S.Palanikumar