TMI Blog2020 (9) TMI 1297X X X X Extracts X X X X X X X X Extracts X X X X ..... ne this issue at all in the assessment order. The Hon ble Supreme Court in Malabar Industrial Company Ltd. [ 2000 (2) TMI 10 - SUPREME COURT] has held that CIT can revise an assessment order where the AO does not apply his mind before finalising the assessment. In an earlier judgment in Tara Devi Aggarwal [ 1972 (11) TMI 2 - SUPREME COURT] has also laid down similar proposition. Similar view has been taken in Gee Vee Enterprises[ 1974 (10) TMI 29 - DELHI HIGH COURT] . Since it is evident from the facts and circumstances of the instant case that the AO did not consider this issue and simply allowed the deduction, we are satisfied that the assessment order turned out to be erroneous and prejudicial to the interest of revenue, rightly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons amounting to Rs. 1,34,882/-. On perusal of the assessment record, the ld. Pr. CIT observed that the assessee had borrowed certain funds from Bank of India in foreign currency in earlier years, that is, 2009-10 and 2010-11, which were payable in 32 equal quarterly instalments. At the beginning of the year, i.e., as on 01-04-2011 an amount of Rs. 44.43 crore was outstanding, whereas at the end of the year an amount of Rs. 47.52 crore was shown as outstanding after repayment of loan of Rs. 3.14 crore. The ld. Pr. CIT observed that despite payment, the outstanding amount of loan, which was taken for acquiring capital assets and not on revenue account had swelled because the assessee restated its foreign currency liability and claimed foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly at the time of making payment and not otherwise on year to year basis as was claimed by the assessee and allowed in the assessment. He submitted that this amendment has the effect of unsettling the earlier position which allowed deduction on account of foreign exchange fluctuation loss on year to year basis despite nonpayment. We find that the ld. Pr. CIT has recorded a categorical finding that the AO did not examine this issue at all in the assessment order. The Hon ble Supreme Court in Malabar Industrial Company Ltd. Vs. CIT (2000) 243 ITR 83 (SC) has held that CIT can revise an assessment order where the AO does not apply his mind before finalising the assessment. In an earlier judgment, the Hon ble Supreme Court in Tara Devi Aggarwal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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