2015 (12) TMI 285

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....TA No. 207 / 2013 and assessee had preferred cross objection in CO 32 / 2013 and they are taken up together and disposed off by a common order for the sake of convenience. ITA No. 207 / 2013 - Revenue Appeal 3. The only issue to be decided in this appeal is as to whether the Learned CITA is justified in considering foreign income at average exchange rate of conversion during the year when credit for tax deducted at source is given based on the actual exchange rate prevailing on the date of transaction. 3.1. The brief facts of this appeal is that the assessee was in receipt of 127613 Oman Rial outside India and chose to bring the same into India during the assessment year under appeal. The Learned AO adopted the exchange rate prevailing a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e average exchange rate of conversion during the year. We hold that the provisions of Rule 26 and Rule 115 of Income Tax Rules provide computation mechanism for conversion of foreign currency into Indian currency in respect of each source of income. Hence we deem it fit and appropriate in the interest of justice and fair play to set aside this issue to the file of the Learned AO to determine the foreign income in accordance with Rule 26 and Rule 115 of Income Tax Rules depending upon the nature of income. We also direct that in case the assessee is able to produce any other fresh evidence to determine the foreign income based on exchange rate prevailing on the date of income, the same need to be considered by the Learned AO while framing th....