1993 (1) TMI 124

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....e IT Act, 1961 (The Act) by the ITO. 2. Briefly stated the relevant facts are that the assessee is a registered firm engaged in the business of jewellery and importing rough Kharad on credit and making the payments in respect thereto in due course of time. The case of the assessee is that though it had been maintaining its account on mercantile system of accounting yet it was accounting for exc....

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.... foreign exchange difference of Rs. 55,528 had been debited to the Profit & Loss Account because that difference had actually been paid during previous year relevant to the assessment year under appeal. However, the said amount of Rs. 57,669 was added back to the net profit in the statement of total income because the said amount had also been claimed in asst. yr. 1983-84 on accrual basis. By movi....

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....ear under consideration, had actually been paid in the year under appeal, the same should have been allowed to the assessee in this year by rectifying the assessment order passed by the ITO under s. 143(1) of the Act. In reply, the learned Departmental Representative although could not deny that in equity and fairness the prayer of the assessee was quite reasonable as it had not been allowed the s....