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TMI Blog2018 (9) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeal of the Revenue for Assessment Year 2006-07 which is directed against the order of CIT(A)-56, Mumbai dated 29.09.2016, which in turn has arisen from the order passed by the Assessing Officer, Mumbai dated 02.02.2011 under section 143(3) r.w.s. 147 & 144C(3) of the Income Tax Act, 1961 (in short 'the Act'). 3. In this appeal, Revenue has raised the following Grounds of appeal :- "1. Whether on the facts and circumstances of the case and in law, the CIT(A) erred in holding that foreign exchange income on underlying forward foreign exchange contracts is not taxable under the head "Income from other sources" even when Forward Foreign Exchange contracts is neither a capital asset nor it is business of the assessee to enter into such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the sum and substance of the dispute revolves around the characterisation of the gain arising to the assessee from early settlement of forward contract for foreign currency. At the time of hearing, it was a common point between the parties that the issue is covered by the decisions of the Tribunal in assessee's own case for earlier assessment years and that even the CIT(A) has followed such precedents in assessee's own case while deciding the issue in favour of the assessee. It was also a common point between the parties that the precedents by way of the respective orders of the Tribunal for various assessment years continue to hold the field as they have not been altered by any higher authority. In this background, in order to impart com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal Gains'. The CIT(A) further noted that for Assessment Year 2007-08 also, the DRP had decided the issue in favour of the assessee, and which was subsequently affirmed by the Tribunal vide ITA No. 8763/Mum/2010 dated 22.06.2016. For the aforesaid reasons, CIT(A) upheld the plea of the assessee that the gain arising from early settlement of forward contracts of foreign currency was to be treated as 'Capital Gains' and not as 'Income from Other Sources'. In this background, Revenue is in appeal before us on the aforestated Grounds of appeal. 7. At the time of hearing, the learned representative for the assessee pointed out that subsequent to the impugned order of the CIT(A), in Assessment Year 2010-11 also, the matter travelled to the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in Ground of appeal nos. 3 & 4 also do not merit acceptance. 9. In view of the aforesaid discussion, the appeal of the Revenue for Assessment Year 2006-07 is hereby dismissed. 10. Insofar as the appeals of the Revenue for Assessment Years 2008-09, 2009-10 and 2011-12 are concerned, the facts and circumstances in the said appeals are pari materia to those considered by us in the appeal for Assessment Year 2006-07, therefore, our decision therein shall apply mutatis mutandis to the said appeals also. 11. Insofar as assessee's cross-appeal for Assessment Year 2006-07 is concerned, the solitary Ground raised reads as under :- "1. The learned Assessing Officer has erred in law and on facts in not accepting the gains amounting to Rs. 24,12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be in the nature of Capital Gains and falling within the beneficial provisions of Article 13(4) of the India-Singapore DTAA, the dispute relating to quantification of such income is rendered infructuous and accordingly, the Ground raised by the assessee is dismissed as infructuous. In the result, appeal of the assessee is dismissed. 14. Insofar as the cross-appeal of the assessee for Assessment Year 2011-12 is concerned, the same assails the interest levied u/s 234C of the Act amounting to Rs. 13,56,280/-. 15. On this aspect also, the learned representative for the assessee pointed out that once the decision of CIT(A) relating to assessability of gain on early settlement of forward exchange contract is affirmed, the said levy of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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