ESOP expenditure allowed as FMV difference; long-term capital gain issue sent back for collector rate determination; deferred income additions disallo...
Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
Appellant's ring-back tone service held OIDAR, taxable domestically for 01.07.2012-31.07.2016; liability confirmed, penalties vacated, remanded for re...
The ITAT allowed the appellant's appeal, setting aside the revision order of the revenue which had disallowed claimed foreign exchange loss. The Tribunal found the appellant consistently follows the mercantile system and recognizes exchange differences on year-end valuation of outstanding foreign currency liabilities; therefore exchange loss recorded in the profit and loss account is genuine under the accounting method adopted. The ITAT concluded that, notwithstanding lack of current operations or actual settlement, year-end revaluation of a USD liability legitimately produces taxable accounting loss and is allowable, and directed restoration of the claim.
The ITAT allowed the appellant's appeal, setting aside the revision order of the revenue which had disallowed claimed foreign exchange loss. The Tribunal found the appellant consistently follows the mercantile system and recognizes exchange differences on year-end valuation of outstanding foreign currency liabilities; therefore exchange loss recorded in the profit and loss account is genuine under the accounting method adopted. The ITAT concluded that, notwithstanding lack of current operations or actual settlement, year-end revaluation of a USD liability legitimately produces taxable accounting loss and is allowable, and directed restoration of the claim.
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