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of <h1>Tribunal decision: Issues remanded, disallowances upheld, Revenue appeals dismissed, assessee appeals allowed.</h1> <h3>Spice Jet Limited Versus Addl. CIT Range-9, New Delhi. And (Vice-Versa) And DCIT Central Circle-01, New Delhi Versus Spice Jet Ltd. And (Vice-Versa) And Spice Jet Limited Versus DCIT Circle 24 (1), New Delhi.</h3> Spice Jet Limited Versus Addl. CIT Range-9, New Delhi. And (Vice-Versa) And DCIT Central Circle-01, New Delhi Versus Spice Jet Ltd. And (Vice-Versa) And ... Issues Involved:1. Foreign Exchange Loss Deduction2. Book Profit Assessment under Section 115JB3. Disallowance of Supplemental Lease Rent under Section 40(a)(i)4. Disallowance of Interest on Late Deposit of Service Tax and VAT under Section 37(1)Summary:Foreign Exchange Loss Deduction:The primary issue in the assessee's appeal for AY 2011-12 was whether the Ld. CIT(A) erred in sustaining the action of the Assessing Officer (AO) in denying the Forex unrealized loss of Rs. 11,72,81,379/- as not allowable deduction while taxing the gain on Foreign Exchange fluctuation of Rs. 82,56,666/-. The AO treated the unrealized Foreign Exchange loss as a capital account and notional loss, thus not allowable as a deduction, but taxed the gain on Foreign Exchange fluctuation. The Tribunal restored the issue to the AO for fresh examination, considering all facts and contentions of the assessee, in accordance with the law.Book Profit Assessment under Section 115JB:Grounds related to book profit assessment under Section 115JB of the Act were dismissed as not pressed by the assessee.Disallowance of Supplemental Lease Rent under Section 40(a)(i):The Revenue's appeal for AY 2011-12 questioned the deletion of the addition of Rs. 168,72,51,723/- made by the AO under Section 40(a)(i) for supplemental lease rent. The AO had disallowed the supplemental rent, treating it as royalty and maintenance reserve, and held it liable for TDS. The Ld. CIT(A) deleted the disallowance, following the Tribunal's decision in the assessee's own case for earlier years and the Special Bench decision in the case of Inter Globe Aviation Ltd. (Indigo) vs. Addl. CIT, holding that supplemental rent is not taxable as royalty and is exempt under Section 10(15A) of the Act. The Tribunal upheld the Ld. CIT(A)'s order, dismissing the Revenue's grounds.Disallowance of Interest on Late Deposit of Service Tax and VAT under Section 37(1):The Revenue's appeal for AY 2012-13 included a ground against the deletion of disallowance of Rs. 76,52,276/- on account of interest paid on late deposit of service tax and VAT. The AO had disallowed the interest, not accepting it as compensatory. The Ld. CIT(A) deleted the disallowance, substantiating that the interest was compensatory in nature and allowable under Section 37(1). The Tribunal upheld the Ld. CIT(A)'s order, rejecting the Revenue's ground.Conclusion:The Tribunal restored certain issues to the AO for fresh examination, upheld the Ld. CIT(A)'s deletion of disallowances related to supplemental lease rent and interest on late deposit of service tax and VAT, and dismissed the Revenue's appeals for the assessment years 2011-12, 2012-13, 2015-16, and 2016-17. The appeals of the assessee for AY 2011-12, 2012-13, 2015-16, and 2016-17 were allowed for statistical purposes.
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