TMI Blog2020 (2) TMI 1535X X X X Extracts X X X X X X X X Extracts X X X X ..... found that the decision of honourable Supreme Court in the case of Sutlej cotton Mills [ 1978 (9) TMI 1 - SUPREME COURT ] is directly applicable on the facts of the case - HELD THAT:- Upon careful consideration we find that ITAT has elaborately discussed the issue. It had found that the decision of honourable Supreme Court in Sutlej Cotton Mills (supra) is directly applicable on the facts of the case. Furthermore as detailed in the submission of the learned departmental representative above the other aspects raised in the miscellaneous application call for a review of the order of the ITAT in the garb of rectification of mistake apparent from record under section 254(2) of the IT Act. The submission in the Miscellaneous Application that some related issues have remained to be adjudicated are in fact aimed at getting the review of the order. This is not permissible. These issues are not arising out of the grounds of appeal before the Tribunal. Accordingly the Miscellaneous application for this issue stands dismissed. - M.A. No. 446/Mum/2019 arising out of I.T.A. No. 1956/Mum/2014 - - - Dated:- 21-2-2020 - Shri Shamim Yahya (AM) And Shri Ramlal Negi (JM) For the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;s own case for earlier years, we set aside the impugned order passed by the Assessing Officer and restore this issue back to his file for denovo adjudication and in accordance with the law. Thus, ground no.6, is allowed for statistical purposes. Accordingly following precedent as above, we remit the issue to the file of the Assessing Officer for fresh consideration. 5. In the Chart submitted during the course of the hearing, following remarks were made in respect of this ground: The issue of expenditure on employee welfare has been decided in favour of the assessee by the Tribunal in AY 2000-01 (ITA No 3998/Mum/2010, Page 2, Para 7) AY 2001-02 (ITA No 7581/Mum/2011, Page 6, Para 27). The issue of contribution to Mahindra Academy had been referred back to AO by HonlTAT in AY 2006-07 (Page 41-44 Para 11), AY 2007- 08. (Page 9, Gr.6); AY 2008-09) (Page No. 9,Para 26). CIT (A) has allowed the appeal on this issue for AY 2006-07 and 2007-08 in Appeal IT-35/14-15 dated 03.11.2015 for A. Y. 2006-07 and IT- 34/14-15 dated 06.10.2016 for A. Y. 2007-08. 6. The mistake that is apparent from the record is that the Honourable Tribunal has inadvertently adjudicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss FY 2009 Rs. In lakhs Capital expenditure in lakhs Forex reserve Rs. In lakhs Unutilisation of forex reserve Zero coupon foreign currency convertible bonds loan 19507 16496 3011 Investment in Mahindra Gears International Ltd. Mauritius and Mahindra overseas Investment company (Mauritius) Ltd. HSBC Loan 5181 4904 277 Investment in Mahindra Gears International Limited, Mauritius and Mahindra Overseas Investment Company (Mauritius) Ltd. Union Bank of India 145T 1455 General working capital purpose CITI Bank DBS 3 3 General working capital purpose ICS S Given 0982 -982 Total 25164 21400 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alance sheet it is seen that the assessee has added fixed assets ₹ 1291 crore during the year. The capital WIP on 31st March is 646.73 crores whereas in the preceding year it was 546.45 crores. 21.6. The addition to the assets have been made under various heads including land, building, plant and machinery, furniture fittings and vehicles, development and software expenditure. The assessee pas not furnished details of foreign exchange loss attributable to various items of capital assets and WIP. In absence of details of application of foreign exchange loans to different items of capital assets it is not possible to attribute such loss to any item of capital asset as cost of acquisition of such asset and allow depreciation. From application of loan as given in the table, it is evident that loan has been applied also for investment in equity of Foreign subsidiaries. Therefore the order of the AO regarding disallowance of foreign exchange loss to the tune of ₹ 214 crores is upheld. 21.7. Regarding the balance foreign exchange loss of ₹ 37.64 crores claimed as revenue expenditure, as per information submitted, the loss of ₹ 32.88 crores has been incurr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 1994 para 10 of which provided for adjustment of carrying amount of fixed assets for exchange differences; On the other hand, Para 13 of if AS 11 revised in 2003 provides that exchange differences arising on settlement or revaluation of monetary items should be treated as income or expense of the relevant period. Similarly, Income Computation and Disclosure Standards notified under s 145(2) we-f AY 2017-18 provide in Para 5(1) that expenses differences should be recognized as income or expense in the relevant year. In his submissions before the Delhi High Court in the case of Chamber of Tax Consultants wherein the constitutional validity of ICDS was challenged the Additional Solicitor General. Appearing on behalf of the Union of India submitted that the changes brought about (by ICDS) are only aimed at bringing uniformity and clarity in the computation of income. Therefore in terms of AS 11 (revised 2003) and ICDS VI, all exchange differences relating to monetary items (revision of liability designated in foreign currency) would have to be recognized as income or expense.‖ 41. Upon hearing both the Counsel and perusing the records, we find that Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of miscellaneous application in this regard the assessee states as under :- 10.The mistake that is apparent from record is that the Honorable Tribunal has not considered the decision of Chennai Tribunal in the case of Hyundai Motor India Ltd (supra), which in turn followed the decision of the Pune Bench in the case of Cooper Corpn. (P.) Ltd. v. Dy. CIT [2016] 69 taxmann.com 244/159 ITD 165 (Pune - Trib.) where in Supreme Court decision in Sutlej Cotton Mills was considered and distinguished. 11. Further, the Honorable Tribunal has not adjudicated the following related issues :- allowability of depreciation in respect of foreign exchange loss related to acquisition of capital assets without there being any need to furnish details of put to use of individual assets, foreign exchange loss transferred to FCMITDA (forming part of total disallowance contested before Honorable Tribunal); foreign exchange gain of ₹ 9.82 crores in respect of ICDs (forming part of total disallowance contested before Honorable Tribunal) and loan form Union Bank (which has been upheld to be loan in local currency by Ld. DRP) is also loan in foreign currency. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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