After giving an hearing to the assessee, the Commissioner of Income Tax passed the following order The last point is regarding application of Rule 115 in respect of earnings on export of iron ore to Japan.
Thereafter, these documents are presented by the petitioners to documents are presented by the petitioners to their banker in India and the petitioners receive payment through the Indian bankers in rupees at the rate of exchange prevailing then.
The assessee has taken the income at the rate at which the amount has actually been credited by the band.
The assessee offered for assessment the amounts received as price of the goods sold to foreign buyers as and when the amounts were received in companyrse of the accounting period and was tawed accordingly.
The Commissioner of Income Tax was of the view that the Income Tax Officer had wrongly assessed the quantum of income arising out of the export sales without applying Rule Accordingly, he issued a numberice under Section 263 upon the assessee proposing to revise the order of assessment.
As soon as the iron ore is loaded into the ship, the bill of lading is signed by the master of the ship and the petitioners raise invoices against the foreign buyers for the price of the ore shipped.
As per the arrangements between the petitioners, the foreign buyers opened a letter of credit with a bank in India.
The Commissioner of Income Tax has companye up in appeal against the judgment of the Division Bench of the Bombay High Court, quashing an order passed by the Commissioner of Income Tax under Section 263 on March 30, 1989.
SEN, J. Special leave granted.
