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2020 (9) TMI 1297 - AT - Income TaxRevision u/s 263 - eligibility of deduction claimed on account of foreign exchange loss - As per CIT AO had not enquired this issue from the angle of allowability of notional foreign exchange fluctuation loss on restatement of allowability at the year ending and further the applicability of section 43A was not considered as per which the loss on account foreign exchange loss was to be allowed at the time of making payment and not on year to year basis - HELD THAT:- We find that the ld. Pr. CIT has recorded a categorical finding that the AO did not examine this issue at all in the assessment order. The Hon’ble Supreme Court in Malabar Industrial Company Ltd. [2000 (2) TMI 10 - SUPREME COURT] has held that CIT can revise an assessment order where the AO does not apply his mind before finalising the assessment. In an earlier judgment in Tara Devi Aggarwal [1972 (11) TMI 2 - SUPREME COURT] has also laid down similar proposition. Similar view has been taken in Gee Vee Enterprises[1974 (10) TMI 29 - DELHI HIGH COURT]. Since it is evident from the facts and circumstances of the instant case that the AO did not consider this issue and simply allowed the deduction, we are satisfied that the assessment order turned out to be erroneous and prejudicial to the interest of revenue, rightly warranting interference at the hands of Pr. CIT u/s.263 of the Act. Decided against assessee.
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