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2016 (10) TMI 1393 - ITAT AHMEDABADReopening of assessment - notice issued beyond four years - addition of the provision of FBT and the expenditure incurred on Social Forestry for earning exempt income - HELD THAT:- We find that the provision of FBT was mentioned in the Profit and Loss account which was before the AO at the time of original assessment proceedings. Therefore, it cannot be said that there was a failure on the part of the assessee to disclose truly and fully all the material facts before the AO. So far as the expenditure Social Forestry for earning exempt income is concerned, we find that this amount was added by the A.O. in the computation of income as per the normal provisions of the Act. Therefore, it cannot be said full facts related to this issue were not disclosed before the A.O. at the time of original assessment. We find that there was no failure on the part of the assessee to disclose truly and fully all the material facts before the Assessing Officer at the time of original assessment proceedings. In the light of the proviso to Section 147 of the Act, we do not find any error or infirmity in the findings of the ld. CIT(A). Appeal filed by the Revenue is accordingly dismissed. Adjustment of MAT credit entitlement while computing book profit u/s. 115JB - AO noticed that the assessee has credited an amount as MAT credit entitlement which was not reduced from the net profit for computing book profit and there is no provision for any adjustment in respect of MAT credit entitlement credited to the Profit and Loss account - HELD THAT:- Provision for current tax is shown at Rs. 7,41,01,907/- and MAT credit entitlement has been separately shown at Rs. 6,13,84,689/- It can be further seen that the provision for current tax is shown at gross amount. The net amount comes to Rs. 1,27,17,218/-, if the MAT credit entitlement is reduced from provision for current tax. If the assessee had shown the net amount of Rs. 1,27,17,218/- and added back the same for the computation of book profit, the revenue would have accepted this computation. But for the accounting principles and set guidelines both the amounts were shown separately. Considering these facts in totality, we do not find any logic in making the addition for computing the book profit; the same has to be deleted. Ground accordingly dismissed. Exchange Fluctuation on repayment of Foreign Currency Term Loan - revenue or capital expenditure - HELD THAT:- Foreign Exchange Fluctuation loss on account of working capital is at Rs. 183.67 lacs. Since, this loss is attributable to the working capital requirement, therefore, it has been considered as a revenue loss. This needs to be verified by the A.O. In the interest of justice and fair play, we restore this issue to the files of the A.O. A.O. is directed to examine the aforementioned chart by calling for necessary details from the assessee. The assessee is directed to provide necessary details for examination. Needless to mention, the A.O. shall give a reasonable opportunity of being heard to the assessee before deciding this issue afresh. In the result, Ground treated as allowed for statistical purpose.
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