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2015 (6) TMI 719 - AT - Income TaxAddition of prior period expenses - CIT(A) deleted the addition - Held that:-In the facts of the present case there is no reference to any evidence having been considered by the CIT(A) to hold that the expenses stated to be incurred in June 2014 to August 2005 actually pertained to setting up some new business, reference there to is completely missing in the pleadings and the finding. Similarly what is the evidence to show that the specific venture was abandoned is also found missing. Nothing is brought out in the impugned order nor relied upon before us in support of the finding. Accordingly being of the view that the decisions while apply to facts which are yet to be settled, reference to the legal principles laid down therein would be of no relevance. Accordingly in view of the above detailed reasoning the impugned order is set aside and the issue is restored back to the file of the AO with the directions to decide the same afresh in accordance with law after giving the assessee a reasonable opportunity of being heard. - Decided in favour of revenue for statistical purposes. Additional liability due to foreign exchange fluctuations towards the capital cost of metallizer - CIT(A) upholding the illegal addition - Held that:- On a consideration thereof in the face of the arguments of the assessee that on facts, the CIT(A) has not appreciated the issue as it was never the case of the assessee that it is a revenue expenditure. The case of the assessee has always been that this is a loss on account of a capital asset and should be adjusted against the capital account. In the above mentioned factual background, we are of the view that in these peculiar facts and circumstances, it would be appropriate to set aside the impugned order and restore the issue back to the file of the AO to address the issues on facts afresh. The AO is hereby directed to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard. The arguments of the Ld. AR that issue should be decided on the principle that irrespective of the year the tax rate is the same cannot be accepted as relevant facts need to be addressed. - Decided in favour of assessee for statistical purposes.
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