TMI Blog2020 (12) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... se of CIT v. Woodward Governor India (P) Ltd. [ 2009 (4) TMI 4 - SUPREME COURT] have been fulfilled or not was not emanating from the appellate order since the assessee has heavily relied on the decision in the case of Oil Natural Gas Corporation Ltd. [ 2010 (3) TMI 81 - SUPREME COURT] . Moreover, the assessee has not filed any detailed explanation in support of material evidence. In view of the above, we set aside the orders of authorities below and remit the matter back to the file of the Assessing Officer to examine the facts of the case in line with the decision of the Hon'ble Supreme Court in the case of Oil Natural Gas Corporation Ltd. v. CIT [ 2010 (3) TMI 81 - SUPREME COURT] as well as CIT v. Woodward Governor Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... minations AE transactions of the assessee company is within arms length and hence no adjustment is considered necessary. Subsequently, due to change in incumbent, notice under section 143(2) r.w.s. 129 of the Act as well as notice under section 142(1) of the Act dated 05.02.2015 were issued to the assessee calling for various details. After considering the details filed by the assessee, the assessment was completed under section 143(3) of the Act assessing total loss of the assessee at Rs. 2,73,95,214/- after making various additions. On appeal against the disallowance of Forex loss, after considering the submissions of the assessee, the ld. CIT(A) confirmed the disallowance made by the Assessing Officer to the extent of Rs. 1,04,60, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record and gone through the orders of authorities below including paper book consisting two case law. On perusal of the orders of authorities below, we find that the assessment order is very cryptic as the Assessing Officer has not given any clear findings about the nature of transaction, but, mentioned that it was only notional loss. On perusal of financials of the assessee, under Schedule 12-Administrative and Other expenses , it has claimed foreign exchange loss-capital goods at Rs. 1,32,32,000/- and foreign exchange loss-expenses at Rs. 54,77,425/- totalling to Rs. 1,87,09,425/-. It was the submission of the assessee that the foreign exchange loss includes both realized and unrealized loss and the accounting treatment for the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Oil Natural Gas Corporation Ltd. v. CIT (supra). Moreover, the assessee has not filed any detailed explanation in support of material evidence. In view of the above, we set aside the orders of authorities below and remit the matter back to the file of the Assessing Officer to examine the facts of the case in line with the decision of the Hon'ble Supreme Court in the case of Oil Natural Gas Corporation Ltd. v. CIT (supra) as well as CIT v. Woodward Governor India (P) Ltd. (supra) and decide the issue afresh in accordance with law by affording an opportunity of being heard to the assessee. The assessee is also directed to produce all the details with proper explanation and evidence before the Assessing Officer for examination. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed break up of the said foreign exchange losses are also not filed by assessee before us for our perusal and decision. The learned counsel for the assessee has fairly stated and pleaded before us that the issue may be restored to the file of the AO for fresh determination wherein detailed observations, findings and decision can be made by the AO explicitly in its order while deciding on the allowability of the said foreign exchange loss to the tune of ₹ 1,04,60,000/- arising on conversion of outstanding balance in foreign exchange as at the year end into Indian currency wherein the AO. 3. We have observed that the authorities below have commented while disallowing these foreign exchange losses on conversion of outstanding balanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... secured loans remaining unpaid, but detailed findings are not there as to complete break up and reasoning of the disallowance vis- -vis Section 37(1), 43A and other applicable provisions of the 1961 Act. At this stage, it is pertinent to mention that Section 43A of the 1961 Act was amended by Finance Act, 2002 w.e.f. 01.04.2003. We are concerned with ay: 2011-12 and hence amended provisions of Section 43A of the 1961 Act shall apply. The Hon'ble Supreme Court in the case of CIT v. Woodward Governor India Private Limited (2009) 312 ITR 254(SC) and Oil and Natural Gas Corporation Limited v. CIT reported in (2010) 322 ITR 180(SC) has noted that the provisions of Section 43A of the 1961 Act were amended by Finance Act, 2002 w.e.f. 01.04.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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