Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (3) TMI 731 - AT - Income TaxDisallowance of foreign exchange fluctuation loss - restatement of foreign currency loan at the end of the year and at the time of actual repayment of loan in installments - Held that:- Since the revenue's appeal for the Asst Year 2004-05 is pending before the Hon'ble Calcutta High Court wherein the notional exchange gain has not been subjected to tax, we deem it fit and appropriate, in the interest of justice and fair play, to direct the Learned AO, to decide the issue under appeal, in the light of the decision to be rendered by the Hon'ble Calcutta High Court.The assessee is at liberty to file fresh evidences and documents to substantiate its contentions before the Learned AO. - Decided in favour of assessee for statistical purposes. Mat computation - whether while computing the book profits u/s 115JB provision for contingencies is to be added back or not, as the same was offered to tax and assessed u/s 115JB of the Act in the years in which the provision was made? - Held that:- CIT(A) had deleted this addition by observing that the appellant has been assessed as per its submissions u/s 115JB in the assessment year 2002-03, 2003-04 and 2004-05. Therefore, since the said amounts have been taxed in the year of creation of provisions, therefore, the same cannot be added back in the assessment year 2005-06 when the addition has been written back. Therefore, the addition is hereby deleted. We find that the factual findings given by the Learned CIT(A) were not controverted by the revenue before us. Thus no infirmity in the order of the Learned CITA in this regard and hold that the assessee is entitled for reduction of provision for contingenciesvwhile computing book profits u/s 115JB in terms of clause (i) of Explanation 1 to section 115JB of the Act. - Decided against revenue Disallowance towards various advances and deposits written off - CIT (A) deleted the addition - Held that:- As find from the facts of the case that the deposits and advances were given in the ordinary course of business and were lying in the books of the assessee company for quite a long time. The same were considered irrecoverable by the assessee and had written off the same in Asst Year 2005-06 and hence the same is to be considered as a trading loss u/s 28 of the Act. We hold that the Learned CIT(A) had rightly deleted the addition made in this regard. - Decided against revenue Disallowance of excess depreciation claimed by way of revised return - Held that:- This issue is squarely covered by the decisions of this tribunal in favour of the assessee for earlier years Asst years 2000-01, 2001-02 and 2002-03 respectively and held that the assessee is entitled for additional depreciation. - Decided against revenue
|