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2021 (4) TMI 481 - AT - Income TaxDisallowance of SWAP loss under section 37(1) - CIT-A deleted the addition - HELD THAT:- This ITAT involving identical facts and circumstances in the case of DCIT vs. Elitecore Technology Pvt Ltd [2017 (4) TMI 394 - ITAT AHMEDABAD] has decided the issue in favour of the assessee stating that the gains on foreign exchange contracts in the same year have been taxed as ‘other income’, the losses on foreign exchange contracts have not been allowed as deduction. Such an approach cannot meet any judicial scrutiny. As for the CBDT instructions, it is only elementary that any instructions issued by the CBDT cannot bind the assessee even though the assessee is entitled to, and can legitimately ask for, any benefits granted to the assessee by such instructions or circulars. Nothing, therefore, turns on the CBDT instruction even if it is actually contrary to the claim of the assessee. No nfirmity in the order of the learned CIT (A). Hence the ground of appeal of the Revenue is dismissed. Disallowance of provision of gratuity - CIT-A deleted the addition - HELD THAT:- As the provision for the gratuity in the year under consideration stands at ₹ 2,98,71,626/- which can be verified from note 26 of the audited balance sheet placed on page 22 of the paper book. As such the sum of ₹ 15,74,957/- represents the amount paid during the year towards the opening balance of gratuity provision which not claimed as expenditure in the year under consideration. However, the auditor inadvertently in his tax audit report has recorded the amount of disallowance at ₹ 3,14,46,585/- only. Accordingly we hold that there cannot be any question of disallowing the payment towards the opening balance represented under the provision for gratuity. At the time of hearing, the learned DR has not brought anything on record contrary to the finding of the learned CIT (A). Accordingly, we do not find any infirmity in the order of learned CIT (A) - Decided against revenue.
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