Revenue authority mandates using scheme-specific reversal procedures, not revising original entries, for instrument-based trade/customs benefits effec...
Transaction value under s.15(1) governs unrelated sales; valuation between related parties per Rule 28; consignment note required for unregistered rec...
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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