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ORAL JUDGMENT Akil Kureshi, J. - All these appeals involve single identical question pertaining to deduction under section 80HHC of the Income Tax Act, 1961 ("the Act" for short) relating to the receipts arising out of the fluctuation of rate of foreign exchange. The facts are slightly different in different cases. However, there being broad similarities, we may refer to the facts from Tax Appeal No.1468 of 2006, which is treated as lead matter. 2. For the purpose of all Tax Appeals, we adopt following substantial question of law:- "Whether in the facts and circumstances of the case, Income Tax Appellate Tribunal was justified in holding that the receipt resulting out of exchange rate difference pertaining to the export made by the assessee was not the profit of business within the meaning of section 80HHC of the Income Tax Act, 1961?" 3. Respondent assessee M/s.Priyanka Gems was engaged in the business of export. The assessee filed the return of income for Assessment Year 2003-04 on 28.11.2003 declaring total income of Rs.5,13,00,591/-. This return was taken in scrutiny. One of the issues considered by the Assessing Officer pertained to the exchange rate difference. Assessing Officer noted that the assessee had received a net of Rs. 71,23,361/- by way of exchange rate difference on the export made in the earlier year. At the same time, the assessee had incurred net loss of Rs.84,35,102/- due to exchange rate fluctuation on the exports made in the same year. After adjustments of the said two sums, the assessee claimed a negative income of Rs.13,11,741/- on account of exchange rate difference. The Assessing Officer thereupon inquired with the assessee why the said amount of Rs.71.23 lakhs" (rounded off) being the exchange rate difference relating to the exports of the earlier period should not be deducted from the export turnover and 90% thereof be not excluded from the business profit for the purpose of computation of deduction under section 80HHC of the Act. He was of the opinion that such amount should be treated as income from other sources. The assessee opposed such proposal relying on its earlier elaborate representation on the same issue for the…

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