2017 (10) TMI 641

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..... adopted AS-31 for the assessment year 2008-2009, which, according to the Assessing Officer, resulted in loss of revenue - Held that:- Despite our specific query as to whether there was any statutory prohibition preventing the assessee from adopting AS-31 for the assessment year 2008-2009, the revenue was unable to show us any such statutory bar. In other words, it is evident from the submissions m .....

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..... pugned disallowance of 63,73,179. Therefore, we do not find any illegality in the order of the Tribunal.
Antony Dominic And Dama Seshadri Naidu, JJ. For the Petitioner : Sri. P. K. R. Menon For the Respondent : Sri. P. Raveendran Pillai JUDGMENT Antony Dominic, J. This appeal is filed by the revenue impugning the order passed by the Income Tax Appellate Tribunal in ITA No.3 of 2013 concern .....

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..... 43(3) read with section 144C(13) of the Act estimating the total income of the assessee which included the disallowance of an amount of ₹ 63,73,179. Annexure-B is the assessment order. The assessee filed an appeal before the Income Tax Appellate Tribunal and by Annexure-C order the Tribunal held that the Assessing Officer was not justified in making the impugned disallowance of ₹ 63,73 .....

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..... show that the assessee was maintaining its accounts on the basis of the instructions issued by the Institute of Chartered Accountants of India. While so, the institute revised its instructions and issued AS-31, making it mandatory only with effect from the financial year 2011-2012. However, the assessee adopted AS-31 for the assessment year 2008-2009, which, according to the Assessing Officer, re .....

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..... see could not have been allowed deduction towards loss under derivative contracts of ₹ 63,73,179. Therefore, the conclusion is irresistible that the assessee was legally entitled to adopt AS-31 for the assessment year 2008-2009 and on such adoption, the assessee was entitled to the deduction as well. If that be so, the Tribunal was fully justified in its conclusion that the Assessing Officer .....

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