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TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1058
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....ax Act, 1961 (hereinafter referred to as 'the Act') for the Assessment Year (A.Y.) 2018-19. 2. There was a delay of 18 days in filing of this appeal. The assessee has filed an affidavit explaining the reason for delay. It is submitted that there was a delay in receiving the assistance from the Counsel for filing the present appeal which led to the marginal delay in filing of the appeal. An affidavit of Sh. Shailesh Balaram Gelada, AR of the assessee, has also been brought on record. He has explained that due to his engagement with year-end finalisation of accounts and other compliances, he could not attend to the matter in time and there was delay on his part in drafting the appeal for the assessee. The assessee has submitted that the de....
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....herefore, the Ld. PCIT held that the order of the Assessing Officer was erroneous and prejudicial to the interest of the revenue and he set aside the assessment order with a direction to pass a fresh order after examining the facts of the case. 4. Aggrieved with the order of the Ld. PCIT, the assessee is in appeal before us. The following grounds have been taken in this appeal: - "1. On the facts and in the circumstances of the case and in law, Learned PCIT has erred in exercising the revisionary powers under section 263 of Act and setting aside the order passed by learned Assessing Officer (AO) under section 143(3) read with section 143(3A) and 143(3B) of the Act dated 28 March 2021. 2. On the facts and in the circumst....
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....or acquisition of any capital asset. Therefore, the provisions of Section 43A of the Act was not applicable. According to the Ld. AR, the provisions of Section 43AA of the Act was applicable in this case. Further, that the provisions of ICDS was made applicable w.e.f. A.Y. 2017-18 only. He submitted that the exchange difference arising on Long Term foreign currency monetary items relating to the acquisition of depreciable asset was adjusted from the cost of the assets only. In this regard, he has drawn our attention to Note-3 of Intangible Asset as appearing in Note to Financial Statement for the year ended 31.03.2018. The Ld. AR also relied upon the judgement of Hon'ble Supreme Court in the case of Woodward Governor India (P.) Limited, 179....
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....ify your claim of deduction with supporting evidences. 7.1 The assessee vide reply dated 06.01.2021 had given the following break-up in respect of the deductions: - "3. Details with respect to other deduction claimed in 'Schedule BP' of ITR: Your kind attention is invited to raw-33 of 'Schedule BP' forming part of Return of Income wherein a deduction of INR 70,84,35,131 has been claimed as any other amount allowable as deduction. Relevant extract of 'Schedule BP' is reproduced hereunder for your ready reference: 33. Any other amount allowable as deduction 33 708435131 Details of such deduction are as under: Sr. No. Particulars of deduction Amount (Rs.) Remarks 1 Amortisation u/s.37....
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.... of this deduction. The explanation of the assessee was accepted by the Assessing Officer without examining as to whether the claim of the assessee was in accordance with the provisions of the Act. 7.3 The provisions of Section 43AA of the Act stipulates that any gain or loss arising on account of any change in foreign exchange rates shall be treated as income or loss and such gain or loss shall be computed in accordance with the income computation of disclosure standards (ICDS) notified under sub-section (2) of Section 145 of the Act. The Assessing Officer was, therefore, required to examine as to whether the deduction for foreign exchange loss claimed by the assessee was in accordance with the Accounting Standard/ICDS, as notified. Rul....
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....y the assessee. Considering this fact, the action of the Assessing Officer in allowing the entire accumulated foreign exchange loss of Rs. 28,72,92,351.35 (pertaining to the current year as well as to the earlier years), in the current year was not correct. As this aspect was not examined by the Assessing Officer, the assessment order was certainly erroneous and prejudicial to the interest of the revenue. 7.5 In the case of Woodward Governor India (P.) Limited (supra), the Hon'ble Supreme Court had held that the outstanding liability relating to the import of raw material has to be reported using the closing rate of foreign exchange and the difference arising on conversion of this liability at closing rate has to be recognised in Profit ....