Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 983 - AT - Income TaxAddition u/s 14A read with Rule 8D - sufficiency of own funds - HELD THAT:- As decided in own case [2018 (5) TMI 420 - ITAT KOLKATA] the own funds of the assessee are sufficient to make the cost of the investments which yielded exempt income. A.O. has not brought anything on record which proves that the investment was made out of the borrowed funds. We are, therefore, of the view that the investment made out of the assessee’s own funds and accordingly the addition made by the A.O. and confirmed by the Ld. CIT(A) under section 14A read with rule 8D(2)(ii) is to be deleted. Disallowing deduction on account of provision for future loss on derivative due to foreign exchange fluctuation - HELD THAT:- As relying on S VINODKUMAR DIAMONDS PVT LTD [2013 (11) TMI 408 - ITAT MUMBAI] and HINDUSTAN GUM & CHEMICALS LTD [2017 (3) TMI 1173 - ITAT KOLKATA] allowability of the loss on actual payment in AY 2009-10 has been made subject to the allowability of the loss for AY 2008-09. This stand of the DRP itself negates the observations of assessing officer that it is a notional loss and establishes that it is a business loss incurred by the assessee on mercantile system which method is consistently followed by the assessee. Under these circumstances, we are inclined to allow the foreign exchange fluctuation loss to assessee in this year. This ground of the assessee is allowed.
|