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| The Tax Publishers2020 TaxPub(DT) 4719 (Ahd-Trib) INCOME TAX ACT, 1961
Section 263
AO had issued a detailed notice under section 142(1) in the questionaire, AO had specifically required assessee to furnish complete break-up and detail of other expenses which also included the amount claimed by the assessee under the head forward exchange premium, therefore, allowance of claim of expenditure pertaining to foreign exchange premium could not be treated as erroneous and prejudicial.
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Revision under section 263 - Erroneous and prejudicial order - No lack of enquiry on AO's part -
Pr. CIT treated order passed by AO as erroneous and prejudicial to the interest of revenue on the ground that AO allowed claim of expenditure pertaining to foreign exchange premium without making any proper and due inquiries. Held: AO had issued a detailed notice under section 142(1) in the questionaire, AO had specifically required assessee to furnish complete break-up and detail of other expenses which also included the amount claimed by the assessee under the head forward exchange premium. In compliance, assessee had submitted relevant details of such expenditure. Explaining that AO had duly considered the claim of expenditure and explained that assessee had availed of credit facility with respect to foreign current loan on which premium was charged. AO had not pointed out any discrepancy in admissibility of the claim of expenditure. Accordingly, assessment order was not erroneous and prejudicial.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
IN THE ITAT, AHMEDABAD BENCH
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