9911796707
TMI Blog2018 (12) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... nd hence, cannot be allowed for the year under consideration. 2. The Officers below failed to appreciate that export advance received for supply of goods had been returned back at the rate prevailing at the time of remittance during the year and the appellant could not anticipate the fluctuation in foreign exchange. 3. The Officers below did not appreciate the fact as to the mode of receipt of the export advance. 4. The Officers below did not appreciate the fact that the loss occurred due to fluctuation foreign exchange rate and should not have held that such export did not earn income during the current year under consideration. 5. The Officers below were not justified in referring the case relating to Appollo Tyre v. Deputy Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn exchange rates of every day are available the same day itself. Therefore, it could not be that the foreign exchange rate as at 31-3-2000 could not be ascertained even as at the time of finalizing the assessee's accounts for the year ended 31-3-2000. Therefore, the assessee's plea that the liability could be ascertained and quantified only after its accounts for the earlier year were finalized is unacceptable. In the circumstances, the foreign exchange loss of the earlier year is not admissible in this assessment, as it does not relate to the relevant previous year. The claim is accordingly disallowed." 4. Aggrieved by the assessment order, the assessee preferred an appeal to the first appellate authority. The CIT(A) confirmed the view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ican company et, in this regard. None of the above details have ever been filed by the appellant. In the absence of filing the above details, the appellant cannot have case for further consideration. This apart, having agreed to the fact during the course of assessment proceedings that the loss stained is in respect of the transactions of the earlier years, the appellant cannot change the argument now, during the course of appeal hearing, stating that the loss incurred is on account of returning back the export advance received in the earlier year. To my understanding, it is not on account of returning back the export advance the captioned loss was incurred but on account of foreign exchange fluctuation corresponding to the goods exported i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken on record. It was submitted that the additional evidences now filed before the Tribunal clearly proves that the assessee had received interest free export advances in the earlier years from Ocean Diamond Inc. and when export obligation could not be fulfilled, the assessee had to remit the amount during the current assessment year. It was stated that the foreign exchange fluctuation loss was on account of return of the export trade advance to Ocean Diamond Inc. which was an allowable business loss. 6. The learned Departmental Representative, on the other hand, strongly supported the orders passed by the Assessing Officer and the CIT(A). 7. We have heard the rival submissions and perused the material on record. The case of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional evidences now filed goes to the root of the issue and for a proper adjudication of case, we admit the same on record. Since the additional evidences are taken on record, in the interest of justice and equity, the same need to be examined by the Assessing Officer. Accordingly, we remit the issue to the Assessing Officer for de novo consideration. The Assessing Officer shall examine whether the amount of two Million USD was received by the assessee in the past years as trade advance in the course of its business of export of seafood and whether the foreign exchange fluctuation loss incurred by the assessee was on account of repaying the above trade advance. If the foreign exchange loss is on account of repayment of trade advance and i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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