TaxTMI 
TaxTMI 
2024 (4) TMI 344
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....cer (AO) under Section 143(3) r.w. Section 144C of the Income Tax Act, 1961 (the Act) concerning AY 2013-14. 2. The grounds of appeal raised by the assessee read as under: "1. That on the facts and circumstances of the case and in law, the Commissioner of Income tax (Appeals)-44, New Delhi [briefly "the CIT(A)"] has erred in upholding addition of Rs. 35,49,435/ - being the notional interest on delayed receipt of export proceeds from its associated enterprises [AEs]. 1.1 That on the facts and circumstances of the case and in law, the CIT(A) did not appreciate that delayed receipt of export proceeds from AEs was not an international transactions under section 92CA of the Act. 1.2 That on the facts and circumstanc....
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....Es). 4. When the matter was called for hearing, the ld. counsel for the assessee straightaway adverted to paragraph 5.4 of the CIT(A) order and submitted that it was pointed out before the CIT(A) that the delay in receipt of export proceed are very minimal and of few days. Besides, interest has not been charged on such receivables pending realization either from AEs or non-AEs. The AE and non AE are treated at par as per its business practices. A tabular statement showing number of days delay qua AEs as well as non-AEs were referred. It was further pointed out that CIT(A) has not examined the issue at all on the ground that such new contention cannot be entertained at this stage in view of the judgment delivered by the Hon'ble Supreme Co....
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....facet of contentions raised before the CIT(A) does not appear justified. 7.2 Hence, without going into merits of the correctness of additions made by the Assessing Officer, we consider it expedient to restore the matter back to the file of the CIT(A) for fresh examination of the issue in accordance with law. It shall be open to the assessee to raise all contentions before the CIT(A) as may be advised and adduce such evidences as may be considered necessary to challenge the correctness of the impugned Transfer Pricing Adjustment towards interest on delay in receipt of export receivables from AEs. Needless to say, reasonable opportunity shall be given to the assessee to address the issue before the CIT(A). 7.3 Accordingly, the matter is....
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....e, the assessee in the instant case has attributed the increased liability of Rs. 12,65,54,992/- to the cost of the assets and the depreciation was allowed, therefore, although the assessee has a good case to argue that exchange fluctuation loss attributable to depreciable assets acquired in India is an allowable revenue expenditure, however, it would require tedious exercise of modifying assessments for number of year. Therefore, we hold that the assessee is entitled to depreciation on exchange loss and the additional grounds raised by the assessee for AY 2009-10 becomes in-fructuous. It is held in the case of CIT v. Industrial Finance Corp of India Ltd. (2009) 185 Taxman 296, that revenue expenditure (loss) is allowable in the year in whi....