Law:

Section:

Section 80HHC of the Income-tax Act, 1961 - Deductions - Exporters - Assessee made an application for extension under section 80 HHC(2)(a) for realsation of outstanding export proceeds - As regards delay, assessee explained that delay in receipt of export proceeds was due to Asian Currency Crisis in South - East Asian Countries and devaluation of Hong Kong dollar Commissioner rejected application holding that assessee ought to have established with evidence that he was unable to bring convertible foreign exchange for reasons beyond control - Whether assessee's explanation suggested that it was beyond assessee's control - Held, yes - Whether therefore, order of Commissioner was to be set aside with a direction to Commissioner to reconsider assessee's application - Held, yes (Matter remanded back) FACTS In respect of sales, the export the assessee-company had received payments on various dates which were, however, delayed. Therefore, the assessee made an application seeking extension of time under section 80HHC(2)(a) for realisation of outstanding export proceeds explaining that the delay in question was due to slackness in the diamond industries which were also facing financial crisis. The Commissioner rejected the application, observing that the assessee ought to have established with evidence that he was unable to bring the convertible foreign exchange for the reasons beyond control. On writ : HELD The assessee's explanation that delay was due to Asian currency crisis in South-East Asian countries and devaluation of the Hong Kong dollar suggested that it was beyond the assessee's control. The matter required consideration by the Commissioner. Accordingly, the impugned order was to be set aside with direction to the Commissioner to reconsider the assessee's application. Note : The case was decided in favour of the assessee. S.M. Lala and S.M. Sarang for the Petitioner. A.S. Rao for the Respondent. JUDGMENT Heard. Rule.…

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