Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 71 - ITAT DELHILoss on sale of fixed assets - added in computation of the total income - profit adjusted in computation of the depreciation - double addition - HELD THAT:- Profit and loss on sale of assets it is apparent that the assessee has taken the net difference between the profit and loss on sale of the fixed assets and same is found to be the profit and therefore same has been reduced from the total income in the computation of the total income. Therefore, we fully agree with the authorised representative that the above is a double addition as assessee itself as adjusted the business income/loss with the above disallowable item. On careful looking of the CIT-A where the whole issue is considered. Not find that the CIT-A has correctly considered the claim of the assessee. CIT-A has confused with the computation of the depreciation as well as the book entry of the loss on sale of fixed assets debited in the profit and loss account. Disallowance on account of legal and professional charges - debited under the head miscellaneous expenses - HELD THAT:- The assessee has not substantiated the same before the lower authorities and by producing the basis of such professional fees. And therefore in the interest of the justice and to determine whether assessee has actually incurred these expenditure for the purposes of the business are not, the whole issue is set aside back to the file of the learned assessing officer with a direction to the assessee to substantiate the same with the production of the necessary evidences in the form of the appeal of the contract of the professionals. Accordingly, of the appeal of the assessee is allowed with above direction. Disallowance on account of fluctuation loss - effect of change in the foreign exchange rates - HELD THAT:- The above issue is squarely covered by the decision of the honourable Supreme Court in case of Woodward governance [2009 (4) TMI 4 - SUPREME COURT]. As before the learned assessing officer no information is provided by the assessee, we set aside this issue before the learned assessing officer with a direction to the assessee to show the amount of foreign exchange loss incurred by the assessee in terms of accounting standard 11 issued by the Inst of chartered accountants of India with respect to the vendor balances. AO is also directed to verify the detail and if the same is on account of the vendor’s the claim of the assessee is allowable. AO then after verification may allow the loss of the foreign exchange fluctuation. - Decided in favour of assessee.
|