9911796707
TMI Blog2015 (7) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... unity of being heard. - Decided in favour of revenue for statistical purposes - ITA No. 1224/Del/2013 - - - Dated:- 16-6-2015 - Diva Singh, JM And T. S. Kapoor, AM,JJ. For the Appellant : Shri P Dam Kanunjna, Sr. DR For the Respondent : Shri Rohit Garg, CA ORDER Per Diva Singh,JM The present appeal has been filed by the Revenue assailing the correctness of the order dated 21.12.2012 of CIT(A)-VIII, New Delhi pertaining to 2009-10 assessment year on the following grounds:- 1. In the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 1,52,29,559/- by merely accepting the submissions of the assessee without making any verification as to how the vendor balan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Vendor 3. - 38,72,202 (38,72,202) Gain on payment of Vendor 4. - 7,50,891 (7,50,891) Gain on payment of Vendor 5. - 70,57,205 (70,57,205) Gain on payment of Vendor 6. - 76,77,901 (76,77,901) Gain on payment of Vendor 7. - 5,22,492 (5,22,492) Gain on payment of Vendor 8. - 8,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst Appellate Authority, the action was assailed by the assessee. The CIT(A) considering the reply of the assessee and relying upon the judgement of the Apex Court in the case of CIT, Delhi vs Woodward Governor India Pvt. Ltd. and Ors. and the decision of the Special Bench in the case of ONGC Ltd. vs. DCIT 83 ITD 151 (Delhi) proceeded to allow relief to the assessee. 4. Aggrieved by which the Revenue is in appeal before the Tribunal. 5. The Ld. Sr. DR inviting attention to the assessment order and the impugned order submitted that the submissions of the assessee have been accepted without any verification as to how the vendor balances and bank advances are on the revenue account. Inviting attention to the ground raised it was submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of CIT Vs Woodward Governor Pvt. Ltd. 210 CTR (Delhi). The operative part affirmed is as under: It is important to note that foreign currency notes, balance in bank accounts denominated in a foreign currency, and receivables / payables and loans denominated in a foreign currency as well as sundry creditors are a monetary items which have to be valued at the closing rate under AS-II. Under para 5, a transaction in a foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. This is known as recording of transaction on initial recognition. Para 7 of AS-11 deals with reporting of the effects of changes in exchange rates subsequent to initial recognition. Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench (Delhi) in the case of ONGC Ltd. Vs DCIT 83 ITD 151 Delhi has observed as under: Before concluding we would like to point out that the assessee's claim for loss arising as a result of fluctuation in foreign exchange rates on the closing day of the year has been disallowed by the AO, inter alia, on the ground that this liability was contingent liability and the loss was notional one. The main ingredient of a contingent liability is that it depends upon hoping of certain event. We are of the considered opinion that in the case of assessee, the event i.e. the change in the value of foreign currency has already taken place in the current year. Therefore, the loss incurred by the assessee is a fate accompli and not a notional on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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