TaxTMI 
TaxTMI 
2020 (12) TMI 1114
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....pleted u/s 143(3) of the Income-tax Act,1961 ['the Act' for short] on 30.12.2016. It appears during assessment proceedings the appellant made a fresh claim before the A.O. for allowance of a deduction of forex loss to the tune of Rs. 62,60,285/-, which was not originally claimed in the return of income. This claim, according to the appellant was made before the A.O. through letter dated 12.9.2016, the contents of which are as below: "The proceedings u/S 143(3) are in progress and the details called for by you have been submitted online and in the tappal. It has recently come to our notice that we have not restated the liability in foreign currency to our overseas creditor as required under our accounting policy. Consequent thereto....
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....ts transactions in foreign exchange with its associated concerns and liabilities in respect of these transactions were reflected in the balance sheet for the relevant previous year i.e. year ended 31.3.2014. The financial statements were subjected to audit also. As per notes to the accounts for the year ended 31.3.2014, a specific mention that has been made about recognition of foreign currency transactions is as below: "24.7.1 Initial recognition Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. 24.7.2. Conversion Foreign currency items are reported using the closing r....
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....allowed without any time limitations, there is no finality to the assessment of income. Further, what is being claimed as forex loss is not the loss pertaining to this year. It is the loss on account of restatement of forex liabilities as on 31.3.2014 which means it includes such liabilities brought forward from the previous years. The CIT(A) did not find substance in the AR's argument that such loss having been accepted and allowed in the later years (on processing the returns), the same should be allowed in the instant year also. For those years, the returns were filed within the permissible time u/s 139 and they were only processed u/s 143(1). A scrutiny assessment cannot be placed on the same footing as that of summary assessment u/s 1....
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....n of income, same to be considered by the appellate authorities and officers of the department must not take the advantage of ignorance of the assessee and it is their duty to assess the tax payer in every reasonable way. Alternatively, he pleaded that loss of atleast Rs. 41,96,702/-, which is relating to assessment year 2014-15 to be considered. 7. On the other hand, Ld. D.R. submitted that the assessee has not made this claim in its return of income and the A.O. has no authority to entertain new claim without revised return of income and he supported the order of the lower authorities. 8. We heard the parties, perused the record and gone through the orders of the authorities below. It is normal that assessee sometime failed to claim ce....
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..... Vs. CIT 229 ITR 383 that it was open to assessee to raise points of law even before the Tribunal. It was held that claim of deduction not made in the return cannot be entertained by assessing officer otherwise than by filing revised return. However, it was held that the reason does not impinge upon the power of the Tribunal u/s 254 of the Act. Further, it was held in the case of Goetze India Ltd. Vs. CIT 284 ITR 323 (SC) that claims need not be accepted by A.O. when made by assessee through a letter, if same is not claimed in return filed u/s 139 of the Act. However, this is not applicable to the appellate authorities. The first appellate authorities could have considered the claim of the assessee in view of the judgement of NTPC cited (s....
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....s, on the settlement thereof during the previous year commencing on the 1st day of April, 2016 or on conversion thereof at the last day of the previous year commencing on the 1st day of April, 2016 shall be recognized in accordance with the provisions of this standard after taking into account the amount recognized on the last day of the previous year ending on the 31st March, 2016 for an item, if any, which is carried forward from said previous year. (3) The financial statements of foreign operations for the previous year commencing on the 1st day of April, 2016 shall be translated using the principles and procedures specified in this standard after taking into account the amount recognized on the last day of the previous year ending on ....