TMI Blog2012 (11) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, it is not possible to hold at present that whether the AO had in fact examined this aspect of the case. Hence, the assessment order is erroneous and prejudicial to the interests of the Revenue as far as the addition to the foreign currency fluctuation reserve account is concerned. Appeal decides in favour of revenue - ITA No.1076/Mds./2012 - - - Dated:- 25-7-2012 - DR.O.K.NARAYANAN AND SHRI CHALLA NAGENDRA PRASAD, JJ. Appellant by : Shri S.Thyagarajan,FCA Respondent by : Dr.S.Moharana, CIT DR ORDER PER Dr.O.K.NARAYANAN, VICE PRESIDENT : This appeal is filed by the assessee. The relevant Assessment Year is 2007-08. The appeal is directed against the revision order passed by the Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directing the Assessing Officer to pass a revised assessment order, being contrary to facts and circumstances of the case, insupportable in law and devoid of jurisdiction, is liable to be cancelled in limine. 2. Since the Assessment order covered by the revisional proceedings under section263 is not erroneous in so far as it is prejudicial to the interests of the Revenue the learned Commissioner ought to have appreciated that his exercise was without jurisdiction. 3. The order of the Learned Commissioner of Income Tax, seeking to restore the Assessment order to the Assessing Officer for re-examination of an issue which was already examined by him, is erroneous and not justified in law. 4. In as much as the decision cited by the Lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icular sum as Revenue income or as expenditure could only be ascertained by an homogeneous reading of Sections 28(1), 29, 37(1) and 145of the Act. 6. The Learned Commissioner of Income Tax erred in not correctly appreciating the provisions of Section 145 of the Act, which provides that the profit and Gains of business shall be, subject to the provisions of sub-section 2, computed in accordance with either cash or Mercantile system of Accounting regularly employed by the assessee. Sub section 2 states that the Central Government may from time to time notify in the official gazette of the Accounting Standards to be mandatorily followed by any class of Assessees to whom such Accounting Standards apply. Accounting Standards which is continuou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that this issue has not been discussed by the assessing authority in his order. The learned Chartered Accountant has vehemently argued that the particulars relating to the above were filed before the Assessing Officer and so, it is not possible to hold that those particulars were not examined by the Assessing Officer, only for the reasons that the issue is not discussed by the Assessing Officer in his order. In support of the proposition, the learned Chartered Accountant has relied on the judgement of the Hon ble Bombay High Court in the case of Commissioner of Income Tax Vs. Gabriel India Ltd. in 203 ITR 108. 8. Accounting Standards-11 mandates that the assessee should maintain foreign exchange fluctuation reserve wherever necess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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