TMI Blog2020 (2) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... company is operating with no employees and is under liquidation with no business operations. It is has sold its entire business vide agreement dated 31.07.2012 w.e.f 01.04.2012. All the employees of the assessee got transferred and it is managed by a liquidator. We find that the assessee had disclosed ECB to the tax auditor. However, while preparing the return of income, due to inadvertent unintentional error, forex loss was claimed as revenue expenditure. In our humble opinion, inadvertent claim of expenditure would not, ipso facto, amount to concealment of income or furnishing of inaccurate particulars of income to levy penalty u/ 271(1)(c) - See Reliance Petro Products [ 2010 (3) TMI 80 - SUPREME COURT ] and the Hon'ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of manufacturing unit/production facility which was before the commencement of production facility, foreign exchange loss incurred on account of repayment of ECB for the purpose of setting up of manufacturing unit/production facility in India was treated as capital cost and was added to the cost of assets. It was explained that such foreign currency loss was added to the cost of assets on the basis of accepted accounting principle and it was duly brought to the notice of the tax auditors. It was further brought to the notice of the Assessing Officer that while preparing the return of income/computation of income, inadvertently forex loss was not added back. Since the foreign exchange loss was not allowable as revenue expenditure, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee pleaded that there was no intention for any revenue leakage and in fact, inadvertent error has not caused any loss of revenue. 14. Per contra, the ld. DR supported the findings of the Assessing Officer and relied upon the decision of the Hon'ble Delhi High Court in the case of Zoom Communications [supra]. 15. We have given thoughtful consideration to the orders of the authorities below. The undisputed fact is that the appellant company is in liquidation and has assessed loss of ₹ 69.60 crores. It is true that the assessee has claimed forex loss as revenue expenditure. It is equally true that once the Assessing Officer has disallowed the same, the assessee did not agitate the matter before the first appellant authority ..... X X X X Extracts X X X X X X X X Extracts X X X X
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