TaxTMI 
TaxTMI 
2023 (4) TMI 1177
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....set forth hereafter: Whether the Tribunal has misdirected itself on facts and in law in deleting additions made by the Assessing Officer (AO) in exercise of powers under Section 147/143(3) of the Income Tax Act, 1961 [in short, "the Act"] concerning the loss on sale of fixed assets amounting to Rs. 2,45,35,280/-? 3. Accordingly, the aforesaid question of law is admitted for consideration. 4. With the consent of counsel for the parties, the appeal is taken up for final hearing and disposal at this stage itself. 4.1 Counsel for the parties say that the record which is presently available with the court will suffice for the disposal of the appeal. 5. The record shows that qua the AY 2005-06, the respondent/assessee had filed return on 28....
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....tions: i) Deduction of Rs. 1,22,67,6401/- on account of loss on sale of fixed assets. This item being capital in nature was required to be added back to the income of the assessee. However, instead of adding back to the .business income of the assessee, this amount was reduced from the total income in the computation sheet. Hence, the omission resulted in underassessment of income by Rs. 2,45,35,2801/-. ii) Deduction of Rs. 2,81,48,0001/- on account of foreign exchange loss. As per notes to the financial statement monetary foreign currency assets and liabilities are translated into rupees at the rates of exchange prevailing on the balance sheet date. As these losses are not based on actual remittance but merely restatement of assets and....
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....h has been passed by the Tribunal cannot be sustained. According to Mr Kumar, the error in allowing the claim in the first round by the AO, on account of loss on sale of fixed assets, was pointed out by the auditor, pursuant to which, the respondent/assessee agreed to the addition being made. 11.2 In sum, it is Mr Kumar's contention that new information came to the notice of the AO, which resulted in course correction in the reassessment proceedings. 12. On the other hand, Mr Deepak Chopra, learned counsel who appears on behalf of the respondent/assessee, does not dispute the fact that the respondent/assessee had indicated that the loss on sale of fixed assets could be added to the returned income. However, Mr Chopra says that this by its....