Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 1403 - AT - Income TaxDisallowance of unrealized foreign exchange loss on account of reinstatement of assets and liabilities - HELD THAT:- A detailed explanation was submitted by the assessee before the AO in support of allowability of unrealized foreign exchange loss which assessee incurred on account of re-statement of foreign currency denominated trade assets/liabilities. The foreign exchange loss had been provided for by the assessee pursuant to the mandatory Accounting Standard (AS-11) issued by the ICAI. The assessee is consistently followed the this policy of restating foreign exchange assets/liabilities as per the exchange rate prevailing on the last day of previous year and accounting for the resultant profit/loss. AO totally ignored this fact as well as the decision of the Hon’ble Apex Court in case of CIT vs. Woodward Governor India Pvt. Ltd. [2009 (4) TMI 4 - SUPREME COURT] . Thus, there is no need to interfere with the findings of the CIT(A). Ground No. 1 of Revenue’s appeal is dismissed. Addition of interest on refund - HELD THAT:- The records show that no refund has been received by the assessee in A.Y. 2011-12 which was received in June 2014 after adjustment of outstanding demands. The interest income was offered to tax in A.Y. 2015-16 by the assessee. Therefore, the CIT(A) has given a proper finding and there is no need to interfere with the same. Ground No. 2 of Revenue’s appeal is dismissed. Addition AIR information for which the assessee asked the Assessing Officer to give party-wise/date-wise details of the information as mentioned in the AIR - HELD THAT:- But the Assessing Officer did not provide the same. Thus, without giving proper opportunity and without verifying the details from the assessee, the Assessing Officer proceeded on the basis of AIR information and made the addition which is not correct. CIT(A) has rightly deleted this addition. Ground No. 3 of the Revenue’s appeal is dismissed.
|