2024 (8) TMI 532

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...., Gurugaon (hereinafter referred to as the 'Ld. AO') u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') on 23/12/2016. 2. The assessee has raised the following grounds of appeal: "1. (i) That the order of the Ld. CIT(Appeals)-2 (hereinafter called CIT(A)) dated 20.09.2018 confirming the addition of Rs. 4,20,67,880/- made by DCIT Circle 1(1) (hereinafter called AO), is illegal, unjust, opposed to facts and suffers from the vice of arbitrariness. (ii) That each Ground of Appeal is without prejudice to each other. 2. (i) That on facts and circumstances of the case and in law, CIT(A) has erred in confirming the addition of Rs. 4,20,67,880/- in pursuance of a time barred order not delivered within the statutor....

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....e Ld. AO have both erred in not following the "Principle of Consistency". During last year, provision of income of Rs. 3,31,37,560/- for foreign exchange fluctuation was accepted by the department. 6. That on facts and circumstances of the case and in law, the Ld. CIT(A) and the Ld. AO have both erred in treating the provision of Rs. 4,20,67,880/- as a Capital Expenditure, without allowing depreciation on the said Capital Expenditure during the current year and in subsequent years. 7. That net income of the appellant be reduced by Rs. 4,20,67,880/-." 3. Heard and perused the record. At the outset, we observed that ground no.1 is general in nature. 4. As with regard to the ground No. 2, the contention of learned Authorized Represent....

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....can only help the assessee to claim that the period of limitation for filing the appeal would be from the date when assessee actually receives the demand notice or assessment order. There is no force in the contention of learned AR that for the purpose of section143(3) read with section 153 of the Act, the assessment order shall be considered to be passed beyond the limit prescribed, for the only reason that though assessment order was passed before the time barring date but was not served upon the assessee, due to inadvertent mistake in mentioning the house number. In fact, it is for such purposes the act provides that discrepancy in notices will not affect the proceedings. We find no error in the findings of the learned CIT(A). The ground....

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....ed by learned Departmental Representative to contend Section 43A is applicable. 9. We have given thoughtful consideration to the matter on record and the submissions made. It comes from the order of Assessing Officer that he considered disallowance u/s 37 of the exchange fluctuation only for the reason that ECB loan was utilized for purpose of acquiring capital asset which has enduring benefit. Contrary to the same CIT(A) has made the disallowance by relying section 43A. We are in agreement with learned Authorized Representative that disallowance under section 37 and under section 43A of the Act, both operate in different spheres. Section 43A is a deeming provision for adding or deducting, the fluctuation loss or profit, from the cost of a....