2019 (6) TMI 1432

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.... : Shri S.N. Soparkar & Ms. Urvashi Shodhan, A.Rs ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Revenue against the order of the Learned Commissioner of Income Tax (Appeals)-4, Ahmedabad [Ld.CIT(A) in short], dated 18/05/2017 arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (herein- after r....

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.... case is a private limited company and engaged in the business of Imports, Exports, and manufacturing of Diamonds, Precious & Semi Precious Stones. The assessee in the year under consideration has claimed provision for the exchange difference in respect of import of the goods amounting to Rs.11,61,18,652.00 only. However, the AO was of the view that the assessee is not eligible for deduction such ....

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....ties below as favorable to them. 5. We have heard the rival contentions of both the parties and perused the materials available on record. From the preceding discussion, we note that the assessee created the provision in respect of the revenue transactions. This fact can be verified from the annual accounts of the assessee which is available on pages 31-69 of the paper book. There was no long-t....

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....ble Apex court involving identical facts and circumstances in the case of CIT versus Woodward Governor India Private Ltd. reported in 312 ITR 254 has held as under: "15. For the reasons given hereinabove, we hold that, in the present case, the "loss" suffered by the assessee on account of the exchange difference as on the date of the balance sheet is an item of expenditure under section 3....