9911796707
TMI Blog2022 (12) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... here is a delay of 545 days in filing the appeal. We have perused the affidavit filed in support of the condone delay petition and we find sufficient causes have been shown for not being able to file the appeal within the prescribed time limit. Accordingly, the delay in filing the appeal is condoned and the application for condonation of delay being IA No.GA/1/2022 is allowed. This appeal filed under Section 260A of the Income Tax Act, 1961 (the Act, for brevity) is against the order dated 21st October, 2020 passed by the Income Tax Appellate Tribunal, 'Virtual Court-A' Bench, Kolkata (Tribunal) in ITA Nos.1195 & 1776/Kol/2019 for the assessment year 2011-12. The revenue has raised the following substantial questions of law for considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, the Assessing Officer treated the same as notional loss and placed reliance on CBDT instruction no.3 of 2010 dated 23.3.2010. Aggrieved by the same the assessee preferred appeal before the Commissioner of Income Tax [Appeals] - XX, Kolkata [CIT(A)]. The assessee contended that it has been following the mercantile system of accounting on regular basis and the loss was recognised in its books of accounts, which is deductible under Section 37[1] of the Act. Further, the assessee contended that the loss was recognised in the books of accounts pursuance of the stipulations in accounting standard no.11 whereunder it is compulsory to give effect to foreign currency transaction as per the foreign exchange rates as on the date of the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is illegible for deduction on the loss recorded by them. The Tribunal relied upon the decision in Woodward Governor India [P] Ltd. & Ors., and after taking note of the relevant paragraph of the judgement the Tribunal has recorded that the facts of the assessee's case is identical to that of the facts of the case in Woodward Governor India [P] Ltd. & Ors. Thus, the assessee was granted relief and the appeal was allowed. The revenue is before us challenging the same as contended before the Tribunal. The revenue before us has also placed the instruction issued by CBDT circular no.3 of 2010 dated 23.03.2010 contending that the said instruction was issued post the decision in Woodward Governor India [P] Ltd. & Ors.. In our considered view, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 can have a retrospective effect thereby negativity the effect of the judgement. The learned senior counsel for the respondent pointed out that identical issue was considered in the case of Principal Commissioner of Income Tax vs. Suzlon Energy Ltd., 2018 [2] TMI 1789 [Gujarat] and the Court held that the decision of the Tribunal in so far as deleting the disallowance being notional loss on outstanding foreign derivative contracts was approved by holding that the decision is in-conformity with the decision of the Hon'ble Supreme Court in Woodward Governor India [P] Ltd. & Ors. The revenue had filed a Special Leave Petition in Special Leave to Appeal [C] No[s].1422/2019 which was dismissed by order dated 17.01.2020. In the case of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
