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TMI Blog2025 (2) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... on to Provident Fund (PF for short) and Employee's State Insurance Corporation ('ESIC' for short), amounting to Rs. 1,66,084/- u/s. 36(1)(ea) of the Income Tax Act, 1961 ('the Act' for short). 3. Briefly, the facts are, the assessee, a resident corporate entity, is stated to be engaged in business of trading Automated Teller Machine, Networked cash dispensers, etc. For the assessment year under dispute, the assessee filed its return of income on 20.09.2011, declaring income of Rs. 60,25,38,254/-. In course of assessment proceeding, while verifying the audit report, the Assessing Officer (AO) noticed that the assessee had claimed deduction on account of payment made towards employee's contribution to PF and ESIC. On further verification, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igation Co. vs. CIT [1965] 56 ITR 52 (SC) 4 CIT vs. Aspinwal & Co. (Travancore) Ltd. [1992] 62 Taxman 254 (Kerala HC) 5 CIT vs. High Land Produce Co. Ltd. [1976] 102 ITR 803 (Kerala HC) 6 CIT vs. High Land Produce Co. Ltd. [1986] 158 ITR 419 (SC) 5. The learned Departmental Representative ('ld. DR' for short) submitted, once the issue has been settled by the Hon'ble Supreme Court, the assessee cannot subvert the process of law. 6. We have considered rival submissions and perused the materials on record. We have also applied our mind on the decision relied upon. Factually, there is no dispute that employees contribution towards PF & ESIC were not deposited in the respective accounts within the stipulated period provided u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p to the assessee. Therefore, we decline to interfere with the decision taken by the departmental authorities. 7. In ground no. 2, the assessee has raised the issue of taxability of unrealized foreign exchange fluctuation gain amounting to Rs. 9,67,06,326/-. 8. Briefly, the facts are, during the year under consideration, the assessee earned an amount of Rs. 9,67,06,326/-, on account of revaluation of outstanding dues payable to its overseas sister concern due to fluctuation in the valuation of the foreign exchange. In the return of income filed for the assessment year under dispute, the assessee recognized such gain to be in the revenue side and offered it as 'income'. Accepting such income offered by the assessee, the A.O. completed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the gain/loss arising on account of foreign exchange fluctuation has been treated as 'revenue in nature'. Therefore, wherever gain arose, the assessee offered it as 'income' and wherever there was loss, the assessee has claimed the loss. Following such revenue recognition principle, the assessee has offered the gain as 'income' in the impugned assessment year. Therefore, in our view, since the offer of gain as income is consistent with the accounting principle regularly followed by the assessee, claim of withdrawal of such income cannot be accepted. If assessee's claim of foreign exchange fluctuation loss has not been accepted by the Revenue in some other assessment years, the issue has to be thrashed out in those assessment years and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05 17.12.2017 2 Inadvertent double disallowance of provision for liquidated damages 1,15,45,958 14.12.2017 3 Inadvertent disallowance of capital expenditure under section 40(a)(i) of the Act 3,09,15,140 11.12.2017 4 Deduction in respect of payments to Diebold Financial Equipment, China ('Diebold China') which was disallowed in the proceeding AY for management shared support services under section 40(a)(i) of the Act 8,86,24,632 11.12.2017 5 Inadvertent Disallowance of payments to Diebold China for management shared support services under section 40(a)(i) of the Act. 3,26,87,070 11.12.2017 Total amount of Additional claims 41,26,12,905 14. The A.O., however, did not entertain assessee's clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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