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2016 (10) TMI 624 - AT - Income TaxTreatment to notional loss on account of foreign exchange fluctuation as revenue loss - section 43A applicability - Held that:- The assessee during the year had claimed the loss on account of foreign exchange fluctuation in respect of loan which was used for the purpose of capital asset as revenue loss which claim was consistent with the department’s stand in earlier years. However, surprisingly for the year under consideration, the AO treated the said loss as capital loss in complete contradiction to his earlier stand. However, as observed above while adjudicating the issue for the earlier years, we have already allowed the claim of the assessee to claim adjustments of notional loss/gain as per the provisions of section 43A of the Act. We, therefore, dismiss this appeal of the assessee with the direction that the assessee will be eligible to claim the adjustments under section 43A of the Act in the light of the observations made above while deciding the assessee’s appeal for A.Y. 2004-05.
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