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TMI Blog2014 (2) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... the case as the provisions can be invoked only when assets are acquired by raising the FCNR (B) loan by taking the payment in foreign currency on acquisition of capital assets on account of these borrowings – Relying upon Radhasoami Satsang vs CIT [1991 (11) TMI 2 - SUPREME Court] the amount has been utilized for repayment of debentures - The purpose of loan was to swap the costlier loan with the cheaper loan - similar expenditure has been allowed in the preceding and succeeding years – Decided against Revenue. - ITA No.5243/Del./2010 - - - Dated:- 21-2-2014 - Shri U. B. S. Bedi And Shri B. C. Meena,JJ. For the Petitioner : Dr. Rakesh Gupta, Advocate, Shri Ashwani Taneja, Advocate and Shri Somil Agarwal, CA For the Responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and verify the nature of the expenditure relating to currency fluctuation on short term loan . The Assessing Officer made the addition of Rs.49,98,072/-. The CIT (A) has deleted the addition by observing as under :- 10. I have gone through the facts of the case and submission of the Appellant and also to the remand report and rejoinder thereof. I have also perused the accounts of the assessee for the year under consideration and additional documents filed in course of appellate proceedings. I am inclined to accept the additional documents filed by the appellant as the same copies of the original documents and no prejudice cause to Department on accepting the same and is also in the interest of justice to dispose of present appeal on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs of FCNR(B) loan as such amount is utilised for repayment of debentures. - The submission of the assessee that initial rupee loan is borrowed for acquisition of fixed assets has been withdrawn by the appellant in the light of the facts discussed above, hence the theory that FCNR(B) loan has indirectly utilised for purchasing the fixed assets in foreign currency could not be applied on present facts, especially in the light of the fact that the appellant is following is AS-11 and the accounts are audited wherein it has been stated that the Exchange difference arising on settlement of transaction, except those relating to fixed assets, are only recognised as income or expense in the year in which they arise. 11. Thus, the sole purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nor, 291 ITR 451 in the assessment order would not hold good after the decision of the Apex Court wherein the decision of the Hon'ble Delhi High Court has been upheld. 13. I am also convinced with the submission of the appellant that no disallowance has been done for the subject expenditure in the earlier years as well as the subsequent years, even when the detailed scrutiny assessment has been done under section 143(3) of the Act. Reliance placed on the decision of Hon'ble Apex court in the case of Radhasoami Satsang vs CIT 193 ITR 321 is correct. It has been held that We are aware of the fact that, strictly speaking, res judicata does not apply to income-tax proceedings. Again, each assessment year being a unit, what is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in foreign currency on acquisition of capital assets on account of these borrowings. In this case, the amount has been utilized for repayment of debentures. The purpose of loan was to swap the costlier loan with the cheaper loan. We also note that reliance of ld. DR on the cases of Microsoft Corporation (India) P. Ltd. vs. DCIT (2011) 008 ITR (Trib) 0058 and Rolls Royce Industrial Power Ltd. vs. ACIT (2010) 006 ITR (Trib) 0722 is of no help to the revenue as facts being at variance in these cases. Further, we would also kike to mention that similar expenditure has been allowed in the preceding and succeeding years. We find no merits in the revenue s appeal when a consistent view has been taken in favour of the assessee on the quest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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