2022 (7) TMI 1463

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....for the assessment years 20125-13. The revenue has raised the following substantial question of law for consideration: i) Whether the learned ITAT erred in not considering that in the present case, the assessing officer did not consider the issues while deciding to allow the deduction of amount of Rs.27,46,16,665/- in his assessment order u/s 143(3) of the Act dated 01.02.2016 which was claimed by the assessee-company on account of foreign exchange fluctuation loss on O/S ECB loan in the computation of income made as per provision of Income Tax Act and as the Assessing Officer did not make any necessary enquiry and verification on this issue hence the order u/s 143(3) of the Act dated 01.02.2016 passed by the assessing officer was errone....

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....The revenue resisted the plea raised by the assessee by contending that the Tribunal's circular issued by the CBDT in instruction no.3 of 2010 dated 23.03.2010 was issued after the decision in Woodward Governor India [P] Ltd. & Ors. case which was rendered on 08.04.2009 and, therefore, contended that the circular would bind the authorities. The Tribunal after hearing the parties has recorded the finding that the facts in the case are not in dispute and the loss has arisen in respect of forward contracts, which had not expired on the last day of the accounting year. Further, the Tribunal noted that the Assessing Officer did not dispute the fact that the assessee was following the mercantile system of accounting which requires to account for ....