Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (5) TMI 505 - ITAT, MUMBAIReopening of the assessment -foreign exchange gain - additions - Once the Assessing Officer considered and examined the issue of foreign exchange fluctuation as manifest from the original assessment order, the assessment completed u/s 143(3) cannot be reopened on the same issue by taking a different view. - there was no tangible material before the AO to hold so income had escaped assessment within the meaning of s. 147 and that the reasons recorded for reopening the assessment constitute a mere change of opinion. Additions - Foreign exchange gain - Under the unamended s. 43A, "actual payment" was not a condition precedent for making necessary adjustment in the carrying cost of the fixed asset acquired in foreign currency, however, under amended s. 43A w.e.f. 1st April, 2003 such actual payment of the decreased/enhanced liability is made a condition precedent for making adjustment in the carrying amount of the fixed assets - This indicates a complete structural change brought about in s. 43A vide Finance Act, 2002. Therefore, the amended section is amendatory and not clarificatory in nature - Hence, the issue on merit is decided in faovur of the assessee.
|