Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 33 - HC - Income TaxNature of receipt - gains earned on cancellation of the foreign exchange forward contract - 'capital receipts' or 'revenue receipts' - if it is capital receipt, whether the same could be reduced from the cost of plant and machinery in connection with which forward contracts were entered into? - HELD THAT:- The finding of the Tribunal that it is a capital receipt and not the revenue receipt has become final as there is no challenge at the instance of the Revenue. Necessity to have it reduced from the cost of plant and machinery in connection with which forward contracts were entered into as decided in OIL & NATURAL GAS CORPORATION LTD. VERSUS COMMISSIONER OF INCOME TAX [2010 (3) TMI 81 - SUPREME COURT] all the assessment years in question being prior to the amendment in section 43A of the Act with effect from April 1., 2003 the assessee would be entitled to adjust the actual cost of the imported capital assets acquired in foreign currency, on account of fluctuation in the rate of exchange at each of the relevant balance-sheet dates pending actual payment of the varied liability. Disallowance of royalty expenses - expenses not relating to the previous year ended on 31.03.1993 - prior period expenses - HELD THAT:- Admittedly, the assessee, instead of claiming the said amount in the assessment year 1992 - '93 claimed it as well in the year 1993 - '94, which was not correct or sustainable and hence disallowed. We are of the view that there is nothing illegal or improper on the part of the Commissioner or the Tribunal in having disallowed the royalty expenses the said extent being attributable to the previous year 1992 - '93, which could not have been claimed during the assessment year 1993 - '94. As it stands so, the second question also stands answered against the assessee and in favour of the Revenue
|