Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 634 - AT - Income TaxRevenue Recognition - Reimbursement of advance tax - Application of Accounting Standard No. 9 issued by the ICAI - held that:- it cannot be said that the amount disputed by APTRANSCO has really accrued to the assessee company in the assessment year under dispute. Only because, the assessee company has raised the bill for the said amount as per the Power Purchase Agreement. - Decided in favor of assessee. Interest income - the company availed foreign currency loans for setting up of a power plant at Libor Plus Fix Rate. In order to hedge the risk on account of exchange rate fluctuations, the company entered into an interest rate swap contract with State Bank of India, Koti, Hyderabad fixing the LIBOR rate. As the interest rates grew during the year, the assessee sold the above contract and made a profit of Rs 3,00,09,300. This profit was disclosed as income from business. - held that:- earning from business activity is independent from earning from saving on account of this kind of hedging. - Order of AO treated the same as income from other sources sustained. - Decided against the assessee.
|