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2020 (11) TMI 405 - AT - Income TaxRevision u/s 263 by CIT - AO has allowed the claim of expenditure pertaining to foreign exchange premium without making any proper and due inquiries - HELD THAT:- Assessee has furnished copies of the relevant documents explaining that the A has duly considered the claim of expenditure and explained that assessee has availed the credit facility with respect to the foreign current loan on which the premium was charged. In this facility, the bank has granted a limit of ₹ 15 crore which was subsequently enhanced to ₹ 18 crores and from this facility, the assessee has availed credit facility for purchase of U.S. $ at predetermined rate to cover the risk of foreign exchange fluctuation, the premium was charged by the bank so that the USA dollar was at the predetermined rate. The assessee has also filed the relevant detail to demonstrate that such facility was also obtained in the previous year relevant to the assessment year 2012-13 and also filed the relevant copies of sanction letter of the bank. CIT has failed to controvert the above referred facts and material cited by the assessee to demonstrate that its claim of foreign exchange premium was allowed by the AO after verification of the relevant materials/details as elaborated above - we consider that in the present case it is very clear that the order passed by the Assessing Officer was neither erroneous or prejudicial. - Decided in favour of assessee.
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