9911796707
TMI Blog2025 (1) TMI 1495X X X X Extracts X X X X X X X X Extracts X X X X ..... second respondent and a Notice that preceded the impugned order under Section 148 of the Income Tax Act, 1961 dated 26.03.2021 for the Assessment Year 2016-2017. 2. The dispute pertains to the Assessment Year 2016-2017. The petitioner had filed return of income on 29.11.2016 under Section 139(1) of the Income Tax Act, 1961 which was scrutinised and ultimately the Assessment was completed on 17.12.2018. After the Assessment order was passed on 17.12.2018, the impugned notice dated 26.03.2021 was issued under the old regime as it stood prior to 01.04.2021. The reasons for issuance of the impugned notice dated 26.03.2021 as communicated to the petitioner which reads as under:- "Since, the premium is a higher amount at which the forward cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m operations Sales and other operating income 15 12,805,297,824 13,495,188,484 Other Income 16 50,650,764 40,312,641 Total 12,855,948,588 13,535,501,125 Expenses Purchase of Stock in Trade 17 11,784,361,705 12,365,177,004 Changes in Inventories 17 13,986,188 176,794,574 Employee Benefits Expense 18 242,565,731 225,233,992 Other Expenses 19 506,812,448 441,342,833 Total 12,519,753,696 13,208,548,403 Finance Costs 20 222,266,594 266,071,549 Depreciation and Amortisation Expenses 7 26,373,832 41,157,799 Profit/(Loss) Before Taxes 87,554,466 19,723,374 Less: Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany uses foreign exchange forwards and currency option contracts to hedge its risk associated with foreign currency fluctuations relating to certain firm commitments. Premium or Discount on the contracts are amortized and recognised in the Statement of Profit and Loss over the period of the contract. Forward exchange contract outstanding at the balance sheet date are stated at the yearend rate and any gains or losses are recognised in the profit and loss account and option contracts outstanding at the balance sheet date are marked to marked and the losses if any are recognised in the Statement of Profit and Loss in pursuance of the announcement of the Institute of Chartered Accountants of India on "Accounting for Derivatives" in March 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been referred to supra indicates that all the informations that were required for completing the Assessments were furnished by the petitioner in response to specific notices issued to the petitioner under Section 143(2) of the Income Tax Act, 1961. 12. Specifically, information relating to Foreign Currency transactions and the loss based on which the expenses was claimed as the deduction under Section 37 of the Act was claimed was subject matter of the query by the Department pursuant to which Assessment Order came to be passed on 17.12.2018. Merely because, no opinion is expressed in the Assessment Order would not mean that the Assessment was completed without forming any opinion on the queries raised by the Department before the Assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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