TaxTMI 
TaxTMI 
2023 (4) TMI 995
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..... 92CA of the Income-tax Act, 1961 (hereinafter referred to as "the Act") dated 13.02.2017 framed by ld. DCIT, LTU-1, Chennai. 2. Facts in brief are that the assessee is a limited company engaged in manufacturing and marketing petrochemicals viz. Linear Alkyl Benzene, Epicholoorohydrin and Chemical intermediates - Caustic Soda and Chlorine, filed nil income return filed on 22.11.2012 for the relevant assessment year 2013-14. The case was selected for scrutiny followed by serving of notice u/s. 143(2) & 142(1) of the Act. Ld. AO, after considering submissions of the assessee completed the assessment proceedings making various additions and disallowance amounting to Rs. 6,05,22,819/-, computing the income of the assessee in the following m....
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....held that dominant or main object would not be a relevant consideration for disallowance u/s 14 A of the Act. 2.4 The learned CIT(A) failed to note that the CBDT has issued circular No.5/2014 dated 11.02.2014 provides for disallowance of the expenditure even whether tax payer in a particular year has not earned any exempt income. 3.1 The learned CIT(A) has erred and directed the AO to delete the addition made on account of closing stock and held that there was a typographical error in the ITR filed in A.Y.2013-14. 3.2 The learned CIT(A) failed to note there is clearly a difference of 5 MT in the opening and closing stock between the ITR and Form 3CD and it's not just a typographical error. 3.3 The lea....
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....ce, but the consideration received was less for which no details have been filed by the assessee. 6. On the other hand, ld. Counsel for the assessee vehemently argued supporting the detailed findings of the ld. CIT(A). 7. We have heard rival contentions, perused records placed before us. 8. The revenue's ground no. 1 is general in nature which needs no adjudication. 9. Ground no. 2.1 to 2.4 of revenue's appeal relates to the disallowance u/s. 14A of the Act. During the course of hearing ld. Counsel for the assessee submitted that the assessee company has not earned any exempt income during the year and this fact was not controverted by ld. DR. We, therefore in view of the recent judgment of Hon'ble Delhi High Court in the case o....
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....s and creditors. The said accounting of net foreign currency loss is shown on the basis of Accounting Standard-16 issued by the ICAI which authorizes such re-statement of foreign exchange loss for the correct presentation of financial statement. The ld. CIT(A) deleted the said disallowance applying the ratio laid down by the Hon'ble Apex Court in the case of CIT vs Woodward Governor India Private limited (2009) 312 ITR 254. 12. We find that the alleged claim of foreign currency loss is notional in nature and the same has been calculated for the outstanding foreign currency payable/receivable by the assessee for the contract which have not expired at the close of the year. In the instant case, such contract which did not expire on 31.03.2....
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.... the assessee in any other mode. The ld. CIT(A) has deleted said addition accepting the contention made by the assessee. We, however notice that there has been amendment by Finance Act, 2010 w.e.f. 01.06.2010 inserting sub clause (viia) to section 56(2) of the Act. It deals with the consideration received against sale of equity shares below the fair market value or without consideration and for receiving any sum below the fair market value, if it exceeds said consideration such excess amount is subjected to tax. Though, ld. AO has not invoked the said provisions while making the addition in the hands of the assessee, however, fact remains that there has been a change in the sale consideration, as what is received was less than what was agre....