Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 382 - AT - Income TaxExchange loss on account of foreign currency loan availed from external sources - AO has disallowed total loss incurred on account of exchange fluctuation by holding that it is in the nature of capital loss - As argued assessee has borrowed foreign currency loans for the purpose of acquiring capital asset as well as for general business purpose and thus, if at all, disallowance is required to be made, then proportionate disallowance is required to be made in respect of exchange loss pertains to loans borrowed for acquiring capital asset - HELD THAT:- We find that the assessee never disputed fact that foreign exchange loss debited into profit & loss account also includes loss pertain to loans borrowed for acquiring capital asset. The only plea raised before us is that the Assessing Officer has considered very same issue for subsequent assessment year 2016-17 and has made proportionate disallowance towards for foreign exchange loss u/s. 43A of the Act, in respect of loss pertaining to loans borrowed for acquiring capital asset. Therefore, considering arguments of the learned A.R for the assessee that the Assessing Officer has considered a similar issue and made proportionate disallowance, we are of the considered view that the issue needs to go back to the file of the Assessing Officer to re-consider the issue in light of the Assessing Officer's subsequent assessment year for 2016-17, keeping in mind rule of consistency and thus, we set aside the appeal and restore the issue to the file of the Assessing Officer and direct the A.O. to reconsider the issue in light of arguments of the assessee that proportionate disallowance is required to be made in line of disallowance made by the Assessing Officer for subsequent assessment year 2016-17. Appeal of assessee is treated as allowed for statistical purposes.
|