TMI Blog2014 (5) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer had not taken note of although reference of the same has been made in the assessment order. The CIT(Appeals) after considering the same had granted the relief to the assessee to the extent of Form 15-I produced by the assessee before the Assessing Officer. We do not find any error in the order of CIT(Appeals) in giving benefit of Form 15-I valuing ₹ 7.28 Crores. This ground in the appeal of Revenue is accordingly dismissed. For the remaining amount of ₹ 8.41 Crores assessee has submitted that the details of truck-wise list of forms 15-I received and destroyed in fire at Bhiwandi were produced before the Assessing Officer Filing of Form 15-I is mandatory. Obtaining of duplicate Form 15-I could be difficult but not impossible. The assessee could have made some effort in procuring duplicate Forms. There is nothing on record to show that any effort was made to obtain duplicate Forms. Therefore, in our considered opinion, the assessee has not discharged its duty and thus, cannot take advantage of fire in the office to get absolved from this liability. Accordingly, this ground of appeal of the assessee is dismissed. Dis-allowance of foreign exchange fluctu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia) Pvt. Ltd.,] provides integrated logistics and supply chain management services including warehousing services, depot management with certain value added services. The assessee is providing logistic services to corporate customers in various sectors such as automotive resource and mining to fast moving consumer goods, retail and pharmaceutics. The assessee for the AY.2007-08 filed its return of income on 31-10-2007 declaring a loss of ₹ 1,55,09,529/-. The case of the assessee was selected for scrutiny and notice u/s. 143(2) of the Income Tax Act, 1961 (herein after referred to as 'the Act') was issued to the assessee on 12-09-2008. The Assessing Officer vide assessment order dt.29-12-2009 made dis-allowance/additions inter-alia on account of: i. Foreign exchange fluctuation loans; ii. Interest on diversion of interest bearing loans to non-interest bearing advances to subsidiary company; iii. Depreciation on addition to fixed assets; and iv. Dis-allowance u/s.40(a)(ia); Aggrieved against the assessment order, the assessee preferred an appeal before the CIT(Appeals). The CIT(Appeals) after considering the facts of the case and the well settled law, pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of considered view that in the light of the fire incident which has gutted the branch offices of the assessee at Bhiwandi and Jamshedpur, the assessee has not been able to produce documents in support of purchase of assets. However, the assessee has been able to show from records expenditure incurred for fixing of the assets. The said claim of the assessee has not been rebutted by the Revenue. In view of the facts and circumstances of the case, we hold that the assessee is entitled to claim deprecation on the fixed assets acquired for Bhiwandi and Jamshedpur Branches. Accordingly this ground of appeal of the assessee is allowed. 7. The second ground raised by the assessee in its appeal is relating to dis-allowance of ₹ 8,41,46,181/- u/s.40(a)(ia). The Revenue has also assailed the findings of CIT(Appeals) on deleting the dis-allowance u/s.40(a)(ia) in respect of freight charges to the extent of ₹ 7,28,38,925/-. The assessee has claimed an amount of ₹ 55.00 Crores towards freight charges. The assessee produced TDS certificates with respect to freight charges amounting to ₹ 28.81 Crores. The assessee further produced Form No.15-I to the tune of ₹ 2.97 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 46.6 Crores. The dispute is with regard to balance ₹ 8.41 Crores. Form No.15-I having value of ₹ 8.41 Crores are allegedly destroyed in fire that took place at Bhiwandi Jamshedpur Branches. The assessee had produced the details of truck-wise list of form No.15-I received and destroyed in fire at Bhiwandi office. The assessee had pleaded genuine hardship in getting duplicate Form 15-I from large number of truck owners/drivers who were hired for transportation of goods throughout the country. Section 194C of the Act deals with the deduction of tax at source on payments made to contractors. Any person responsible for paying any sum for carrying out any work shall at the time of payment in cash or credit of such sum shall deduct on amount equal to 1% or 2% as the case may be (as specified under the Act) of such sum as income tax. Sub-section(6) of Section 194C gives exception where no such amount is to be deducted. The Relevant extracts of section 194C(6) (7) are re-produced herein below: (6) No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan of ₹ 23.84 Crores, ₹ 21.68 Crores were utilized for working capital purposes and hence allowed the same as expenditure by following the decision of the Hon'ble Supreme Court of India in the case of CIT v. Woodward Governor India (P) Ltd., [2009] 312 ITR 254. 13. Before us, the ld.DR has not been able to controvert the findings of the CIT(Appeals). The Hon'ble Apex Court in the case of Woodward Governor India (P) Ltd., (supra) has held that loss suffered by the assessee on account of fluctuation in the rates of foreign exchange as on the date of balance sheet is an expenditure u/s.37(1) of the Act. We do not find any infirmity in the findings of the CIT(Appeals) on this issue. Accordingly, this ground of appeal of the Revenue is dismissed. 14. The next ground raised by the Revenue in its appeal is with respect to dis-allowance of interest on diversion of interest bearing loans. The contention of the ld.DR is that there is no nexus between the assessee and the company to which interest free loan has been given. No document was produced by the assessee before the Assessing Officer to show that the company to whom interest free loan is extended is a subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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