Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (5) TMI 373 - AT - Income TaxDisallowance - loss on foreign exchange fluctuation - It is thus free from any doubt that the estimated contracts which have not matured by the year end is also be allowed as a deduction in computation of business income - The Bench in assessee’s own on identical issue held that loss on account of foreign exchange fluctuation in respect of inventory which is part of closing stock need not be taken into account for computation of closing stock value because the said expenditure is not to be taken into account for computation of cost of purchase - Appeal is allowed Regarding 36(1)(xi) - Conversion of non-Y2K compliant computer system into Y2K computer system - Where the vendor was unable to provide satisfactory Y2K compliance certification, due care was taken to either upgrade the system or replace the same so as to minimize or bring down the impact of Y2K to the assessee - The break up of the expenses incurred by the assessee and the nature of the expenses and the explanation offered by the assessee as to why these expenses are to be allowed as revenue expenditure have already been set out above - CBDT Circular No. 779, dated 14-9-1999 - The facts as claimed by the assessee have not been disputed by the revenue. The auditors in their report have certified that the claim under section 36(1)(xi) of the Act has been correctly made - there is no evidence to show that there was any acquisition of a new computer system. Taking into consideration the intention behind the provisions as explained in the Board Circular and the facts of the assessee’s case, we feel that the claim of the assessee deserves to be accepted. - Decided in favour of the assessee Deduction u/s 80HHC - AO excluded income received by your appellant on account of sale of scrap and miscellaneous income from the profits of the business for the purpose of computing deduction under section 80HHC of the Act. - Held that:- Assessing Officer to include the income received by the assessee on account of sale of scrap, lease rentals and camera repair charges for the purpose of computing deduction under section 80HHC of the Act.
|