TMI Blog1993 (1) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee is a registered firm engaged in the business of jewellery and importing rough Kharad on credit and making the payments in respect thereto in due course of time. The case of the assessee is that though it had been maintaining its account on mercantile system of accounting yet it was accounting for exchange rate differences on payment basis and such a practice being adopted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount because that difference had actually been paid during previous year relevant to the assessment year under appeal. However, the said amount of Rs. 57,669 was added back to the net profit in the statement of total income because the said amount had also been claimed in asst. yr. 1983-84 on accrual basis. By moving his application on 2nd March, 1989, the assessee required the ITO to rectify th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should have been allowed to the assessee in this year by rectifying the assessment order passed by the ITO under s. 143(1) of the Act. In reply, the learned Departmental Representative although could not deny that in equity and fairness the prayer of the assessee was quite reasonable as it had not been allowed the said liability either in the asst. yr. 1983-84 on accrual basis or in the year under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain decisions were also cited by Shri Gargieya in support of his contention yet I find that the facts being quite clear, the scale of justice tilts in favour of the assessee. I, therefore, direct that the exchange rate difference of Rs. 57,669 be allowed to the assessee in the year under consideration and the assessment order be modified by the ITO accordingly. 6. In the result, the appeal is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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