Appellate tribunal grants deduction for forex loss, distinguishes between revised and corrected returns

The appellate tribunal partially allowed the appellant's claim for a deduction of forex loss, reducing the amount to Rs. 41,96,702 for the assessment year in question. It was determined that the assessing officer cannot entertain claims not in the original return unless revised, but appellate authorities have the discretion to consider such claims. The tribunal emphasized the distinction between revised and corrected returns, directing the assessing officer to grant the specified deduction towards forex loss for the relevant assessment year.

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Issues:
1. Claim for deduction of forex loss not originally claimed in return of income.
2. Entitlement to deduction of forex loss as per accounting standards.
3. Authority of assessing officer to entertain new claims without revised return.
4. Consideration of additional claim by appellate authorities.
5. Distinction between revised return and correction of return.

Analysis:
1. The appellant filed a return of income for the A.Y. 2014-15 but later claimed a deduction of forex loss of Rs. 62,60,285, which was not originally claimed. The assessing officer completed the assessment without mentioning this claim.
2. The CIT(A) observed that the appellant's claim was an accounting loss, not a statutory deduction, as per AS-11. The appellant failed to comply with AS-11 by not recognizing the forex loss in the relevant financial year despite reflecting liabilities in the balance sheet.
3. The question arose whether the assessing officer could consider additional claims made through a letter, not in the original return. The Circular by CBDT emphasized assessing the taxpayer reasonably. The Tribunal noted that the assessing officer cannot entertain claims not in the return unless revised. However, the appellate authorities can consider such claims.
4. The appellate tribunal considered the appellant's claim for deduction of forex loss. The appellant argued that the deduction should be allowed, even if not claimed initially, and authorities should not take advantage of the taxpayer's ignorance. The tribunal partially allowed the claim for a reduced amount of Rs. 41,96,702 for the assessment year under consideration.
5. The tribunal distinguished between revised and corrected returns. It held that the assessing officer cannot accept claims made through a letter if not in the return. However, the appellate authorities have the discretion to consider such claims. The tribunal directed the assessing officer to grant a deduction of Rs. 41,96,702 towards forex loss for the assessment year under consideration.

This detailed analysis covers the issues raised in the legal judgment regarding the deduction of forex loss and the authority of the assessing officer and appellate authorities to consider such claims.

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