9911796707
TMI Blog2019 (3) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... substantiated the same before the lower authorities and by producing the basis of such professional fees. And therefore in the interest of the justice and to determine whether assessee has actually incurred these expenditure for the purposes of the business are not, the whole issue is set aside back to the file of the learned assessing officer with a direction to the assessee to substantiate the same with the production of the necessary evidences in the form of the appeal of the contract of the professionals. Accordingly, of the appeal of the assessee is allowed with above direction. Disallowance on account of fluctuation loss - effect of change in the foreign exchange rates - HELD THAT:- The above issue is squarely covered by the decision of the honourable Supreme Court in case of Woodward governance [2009 (4) TMI 4 - SUPREME COURT]. As before the learned assessing officer no information is provided by the assessee, we set aside this issue before the learned assessing officer with a direction to the assessee to show the amount of foreign exchange loss incurred by the assessee in terms of accounting standard 11 issued by the Inst of chartered accountants of India with respect t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowance of Rs,5,331,000/- on account of fluctuation in foreign currency in respect of outstanding balances of customers and that too by recording incorrect facts and findings and without giving adequate opportunity of hearing and without following the principles of natural justice. 6. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making disallowance of ₹ 5,,33,,000/- on account of fluctuation in foreign currency in respect of outstanding balances of customers is bad in law and against the facts and circumstances of the case. 7. That having regard to the facts and circumstances of the case, Ld. CIT (A) has erred in law and on facts in not reversing the action of Ld. AO in making disallowance of ₹ 16,75,480/- made by Ld. AO on account of miscellaneous balances written back and that too by recording incorrect facts and findings and without giving adequate opportunity of hearing and without following the principles of natural justice. 8. That in any case and in any view of the matter, action of Ld. CIT(A) in not reversing me action of Ld. AO in making disallowance of ₹ 16,75,480/- made by L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of loss on sale of fixed assets. He submitted that this is the double addition made by the learned AO. He referred to the computation of the total income placed at page number 1 of the paper book to show the above fact that profit on sale of fixed assets of INR 3 0712634 has been reduced from the total income which includes the loss on the sale of the assets also and the above income reduced from the total income is only the net difference. 6. The learned departmental representative vehemently supported the order of the learned assessing officer as well as the learned CIT A. She submitted that it cannot be said to be a double addition. She further referred to the order of the learned CIT A wherein para number 6 the whole issue is covered. 7. We have carefully considered the rival contention and perused the orders of the lower authorities. On looking at the computation of the total income placed at page number 1 of the paper book the assessee has reduced from the taxable income profit on sale of fixed assets of INR 3 0712634/ . The assessee has also submitted the copy of the profit on sale of fixed assets account in the books of the assessee. It is placed at p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are allowable to the assessee under section 37 (1) of the income tax act as there wholly and exclusively incurred for the purposes of the business of the assessee stop is all these expenses are pity amount the assessee thought it fit that provision of the detail in the form of Ledger account where the complete narration has been provided would suffice for its allowability. He further stated that in past no such disallowance have been made. He further stated that assessee has nowhere agreed before the learned assessing officer otherwise it would not have been contesting the same before the higher forum. 10. The learned departmental representative vehemently supported the order of the learned lower authorities and submitted that the assessee has failed to justify the incurring of the above expenditure without producing any evidence before them and therefore the disallowance has been confirmed. She further stated that the assessee has agreed for the above disallowances before the assessing officer and therefore now it cannot contest the same. 11. We have carefully considered the rival contention and perused the orders of the lower authorities it is admitted that the before the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of change in the foreign exchange rates. He therefore submitted that above claim is allowable to the assessee as the above losses arise and because of the conversion of the outstanding balance of the customers and vendors with respect to the foreign exchange fluctuation at the end of the year. 14. The learned departmental representative vehemently supported the order of the lower authorities and submitted that the before the assessing officer the assessee could not submit any evidence and therefore the disallowance has been confirmed and assessee agreed to that. He further stated that before the learned CIT A there is a specific finding given by the learned CIT A that the above losses not on account of any business during the year. She therefore submitted that it is not allowable to the assessee. 15. We have carefully considered the rival contention and perused the orders of the lower authorities. The assessee has incurred the above loss as stated before us that is on account of the conversion of the vendor s account due to the foreign exchange fluctuation as same is in accordance with the accounting standard 11 issued by the Inst of chartered accountants of India. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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