9911796707
TMI Blog2015 (7) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... aking any verification as to how the vendor balances and bank advances are on revenue account. 2. The appellant craves leave to add, amend or modify the ground of appeal before or during the course of the appeal." 2. The relevant facts of the case are that the assessee was engaged in the business of Design & Construction of Tunnel between Indira Gandhi International Airport Station and Dwarka Sector-21 declared an income of Rs. 5,55,19,860/-. The return was picked up for scrutiny wherein the assessee was required to explain the loss claimed under head "other income" wherein considering the reply of the assessee addition by way of a disallowance was made on the following facts:- 3. "On perusal of the Profit & Loss account it was noticed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Euro 5,51,95,359 3,65,37,186 1,86,58,173 (emphasis provided by the Bench) 3. In appeal before the First Appellate Authority, the action was assailed by the assessee. The CIT(A) considering the reply of the assessee and relying upon the judgement of the Apex Court in the case of CIT, Delhi vs Woodward Governor India Pvt. Ltd. and Ors. and the decision of the Special Bench in the case of ONGC Ltd. vs. DCIT 83 ITD 151 (Delhi) proceeded to allow relief to the assessee. 4. Aggrieved by which the Revenue is in appeal before the Tribunal. 5. The Ld. Sr. DR inviting attention to the assessment order and the impugned order submitted that the submissions of the assessee have been accepted without any verification as to how the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Woodward Governor India Ltd. 223 CTR 7 has been affirmed the decision of the Hon'ble Delhi High Court in the case of CIT Vs Woodward Governor Pvt. Ltd. 210 CTR (Delhi). The operative part affirmed is as under: "It is important to note that foreign currency notes, balance in bank accounts denominated in a foreign currency, and receivables / payables and loans denominated in a foreign currency as well as sundry creditors are a monetary items which have to be valued at the closing rate under AS-II. Under para 5, a transaction in a foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. This is known as recording of transaction on initial recognition. Para 7 of AS- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard Governor India (Pvt.) Ltd. & Others (2007) 210 CTR (Del) 354 "affirmed. " The Hon'ble ITAT Spl. Bench (Delhi) in the case of ONGC Ltd. Vs DCIT 83 ITD 151 Delhi has observed as under: "Before concluding we would like to point out that the assessee's claim for loss arising as a result of fluctuation in foreign exchange rates on the closing day of the year has been disallowed by the AO, inter alia, on the ground that this liability was contingent liability and the loss was notional one. The main ingredient of a contingent liability is that it depends upon hoping of certain event. We are of the considered opinion that in the case of assessee, the "event" i.e. the change in the value of foreign currency has already taken place in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
