2020 (9) TMI 1297

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.... This appeal by the assessee is directed against the order dated 27-03-2017 passed by the Pr. Commissioner of Income-tax u/s. 263 of the Income-tax Act, 1961 (hereinafter also called 'the Act') in relation to the assessment year 2012-13. 2. This appeal was taken up for hearing for the first time on 24- 07-2019 when the assessee remained unrepresented. The matter was adjourned for 23-09-2019.....

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....few small additions amounting to Rs. 1,34,882/-. On perusal of the assessment record, the ld. Pr. CIT observed that the assessee had borrowed certain funds from Bank of India in foreign currency in earlier years, that is, 2009-10 and 2010-11, which were payable in 32 equal quarterly instalments. At the beginning of the year, i.e., as on 01-04-2011 an amount of Rs. 44.43 crore was outstanding, wher....

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....fter considering the assessee's submissions, the ld. Pr.CIT opined that the AO had not enquired this issue from the angle of allowability of notional foreign exchange fluctuation loss on restatement of allowability at the year ending and further the applicability of section 43A of the Act was not considered as per which the loss on account foreign exchange loss was to be allowed at the time of mak....

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....ment. He submitted that this amendment has the effect of unsettling the earlier position which allowed deduction on account of foreign exchange fluctuation loss on year to year basis despite nonpayment. We find that the ld. Pr. CIT has recorded a categorical finding that the AO did not examine this issue at all in the assessment order. The Hon'ble Supreme Court in Malabar Industrial Company Ltd. V....