The Tax Publishers2020 TaxPub(DT) 4901 (Bang-Trib)

INCOME TAX ACT, 1961

Section 37(1)

Where CIT(A) observed that the claim was not related to the assessment year under consideration and it relates to the earlier assessment year and on perusal of computation statement of forex loss furnished by assessee, loss up to 31-3-2013 was at Rs. 20,63,782 and for the year ended 31-3-2014 cumulatively it is Rs. 62,60,284, thus, assessee was entitled for forex loss relevant to the assessment year only to the tune of Rs. 41,96,702 and not entire amount of Rs. 62,60,285, accordingly, appeal of assessee was partly allowed.

Business expenditure - Disallowance of forex loss - Loss allowed only upto relevant assessment year -

Assessee made a fresh claim before AO for allowance of a deduction of forex loss which was not originally claimed in the return of income. AO, without making any mention of this claim in the assessment order, completed the assessment and disallowed the claim made by assessee. Held: Assessee filed a letter seeking the deduction towards forex loss. AO outrightly rejected it without discussing anything about it. CIT(A) observed that the claim was not related to the assessment year under consideration and it related to the earlier assessment year. On perusal of computation statement of forex loss furnished by the assessee, loss up to 31-3-2013 was at Rs. 20,63,782 and for the year ended 31-3-2014 cumulatively it was Rs. 62,60,284. Thus, loss related to the assessment year was only Rs. 41,96,702. Assessee was entitled for forex loss relevant to the assessment year only to the tune of Rs. 41,96,702 and not entire amount of Rs. 62,60,285. Accordingly, AO was directed to grant deduction towards forex loss to such extent.

REFERRED :

FAVOUR : Partly in assessee's favour.

A.Y. : 2014-15



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