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2020 (12) TMI 456 - AT - Income TaxDisallowance of foreign exchange fluctuation loss as notional loss - forex loss were emanated due to fluctuation in the value of foreign currency in relation to Indian currency - Assessee submitted that the forex loss includes both realized and unrealized loss and the accounting treated for the same was in line with the accounting standard 11 as mandated by Schedule VI of the Companies Act and therefore, the claim of forex loss should be allowed - HELD THAT:- In the present case, even though the assessee may be following mercantile system of accounting, but, the parameters as envisaged in the case of CIT v. Woodward Governor India (P) Ltd. [2009 (4) TMI 4 - SUPREME COURT] have been fulfilled or not was not emanating from the appellate order since the assessee has heavily relied on the decision in the case of Oil & Natural Gas Corporation Ltd. [2010 (3) TMI 81 - SUPREME COURT]. Moreover, the assessee has not filed any detailed explanation in support of material evidence. In view of the above, we set aside the orders of authorities below and remit the matter back to the file of the Assessing Officer to examine the facts of the case in line with the decision of the Hon'ble Supreme Court in the case of Oil & Natural Gas Corporation Ltd. v. CIT [2010 (3) TMI 81 - SUPREME COURT] as well as CIT v. Woodward Governor India (P) Ltd [2009 (4) TMI 4 - SUPREME COURT] and decide the issue afresh - Appeal of the assessee is allowed for statistical purposes.
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