TaxTMI 
TaxTMI 
2024 (6) TMI 816
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....e is mistake apparent from record in the order as regards to scheme of forward premium paid for the turnover of foreign exchange contract whether falls u/s. 43A of the Income Tax Act, 1961 (hereinafter the 'Act') or not. 2. The ld.counsel for the assessee before us pointed out that the Tribunal held that the additional amount paid as difference in exchange value resulting in higher installment paid in respect of loans taken from foreign banks for purchase of machinery is capital in nature. The ld.counsel for the assessee drew our attention to assessee's paper-book wherein statement of forward premium is given at page 1 & 2 and also enclosed copies of forward contracts from pages 6 to 18. The ld.counsel for the assessee stated that the fo....
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....ould apply only to the additional liability arises on account of foreign exchange fluctuation in respect of imported assets and it will not apply to foreign exchange fluctuations in regard to working capital loan for acquiring domestic assets. In view of the chart submitted above, argued that the forward premium is an allowable deduction as held by Hon'ble Delhi High Court in the case of Industrial Finance Corporate of India reported in 228 CTR 132 (Del). On the other hand, the ld. Senior DR could not controvert the above fact situation. 3. After hearing rival contentions and going through the facts of the case, we noted that the provisions of section 43A of the Act would not apply in respect of working capital loan or loan for acquiring....
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....ssets. The AO will verify these from the invoices and then in case, he finds that this forward premium is for the purchase of indigenous assets, the AO will allow the same as revenue expenditure. In term of the above, we rectify our mistake and the appeal of the assessee in ITA No.896/CHNY/2017 is allowed for statistical purposes. Accordingly, the miscellaneous application of the assessee is allowed. MA No.151/CHNY/2023 4. By way of this Miscellaneous Application, the assessee has requested for rectification of mistake apparent from record in the order of the Tribunal dated 17.05.2023 in confirming the disallowance enhanced by CIT(A) of exempt income of Rs. 18,28,080/- as against disallowed by the AO at Rs. 4,57,368/- by applying the ....
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....counsel then took us through the Tribunal order and stated tha the Tribunal has not at all adjudicated this ground and the relevant findings are recorded in the miscellaneous application of the assessee, wherein simpliciter the Tribunal has restricted the disallowance qua exempt income following the Hon'ble Delhi High Court order in the case of Cheminvest Ltd., supra. Hence, non- adjudication of ground of enhancement constitute mistake apparent from record in the order of the Tribunal. 6. When this was pointed out to ld. Senior DR, he could not controvert the above fact situation. 7. After hearing rival contentions and going through the facts of the case, we noted that the Tribunal has committed mistake apparent from record in the ord....