9911796707
TMI Blog2016 (10) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment years 2004-05, 2005-06 & 2009-10. Since all the four appeals were heard together and hence the same are being disposed of by this common order. 2. We take up assessee's appeal bearing ITA No.630/M/2009 for A.Y. 2004-05 as lead case. ITA No.630/M/2009 for A.Y. 2004-05 3. In this appeal, the assessee has raised the following grounds of appeal: "1. On the facts and circumstances of the case and in law, the Learned Commissioner of Income-tax (Appeals) {{CIT(A)}] erred in confirming the disallowance of Rs. 16,91,710/- made by the Assessing Officer under section 36(1)(va) in respect of Employees contributions to Provident Fund and ESIC actually paid by the appellant, though delayed. 2. (a) On the facts and circumstances of the case a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O) under section 36(1)(va) of the Act in respect of Employees Contribution Provident Fund and ESIC on account of delayed payment. The AO had made the disallowance observing that the contribution to the above stated funds was paid by the assessee after the due date as specified in explanation to section 36(1)(va) of the Act. 5. The Ld. CIT(A) also confirmed the disallowance. 6. Before us, the Ld. A.R. of the assessee has relied upon the decision of the Hon'ble Supreme Court in the case of "CIT vs. Alom Extrusions Ltd." reported in 185 Taxman 416 (SC) wherein the Hon'ble Supreme Court has held that the effect of deletion of second proviso to section 43B of Finance Act, 2003 is retrospective therefore, the assessee would be entitled to claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign currency loan, included in above, which was utilized for importing fixed assets, the assessee has been adjusting the loss or gain arising out of foreign exchange rates fluctuation as per the provisions of Section 43A of the I.T. Act. As the above existing loans were high interest bearing loans, the assessee under its capital re-structuring plan, negotiated for an external commercial borrowing in foreign exchange and borrowed Rs. 20,28,68,000/- from Bank of Baroda, London Branch in the previous year ended 31.3.2004 relevant to the assessment year under consideration. The new ECB loan was disbursed to the assessee by way of direct payment by the new lender to the old lenders in full and final settlement of their respective dues. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were accordingly taken over by the new bank. The present loan was not taken for any other purpose but for the repayment of the old loan which was admittedly used for the purpose of purchase of capital assets. After considering the above submissions and going through the undisputed fact that the new loan was taken for repayment of old loan which, in fact, was paid by the new bank i.e. Bank of Baroda directly to the old banks/financers of the assessee, it can be well observed that it was not a case of taking of a new loan for any other purpose but it was a simple case of shifting of the loan from the one bank to other. The assessee is thus entitled to the benefits/adjustments of the corresponding losses and gains as per the provisions of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is accordingly decided in favour of the assessee. Ground Nos.4 & 5 16. Ground Nos.4 & 5 are relating to disallowance made by the AO under section 40(a)(ia) of the Act. The Ld. A.R. of the assessee has stated at bar that he does not press ground Nos.4 & 5 of the assessee's appeal. Ground Nos.4 & 5 of the assessee's appeal are therefore dismissed as not pressed. ITA No.2536/M/2013 for A.Y. 2009-10 (Assessee's appeal) 17. The sole issue taken by the assessee in this appeal is regarding the action of the AO in rejecting the claim of the assessee treating the notional loss on account of foreign exchange fluctuation as revenue loss. The assessee during the year had claimed the loss on account of foreign exchange fluctuation in respect of l ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
