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TMI Blog2020 (9) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... nce again came up for consideration before the Tribunal in assessee s own case for A.Y. 2013-14. A copy of such order has also been placed on record in which the earlier view has been reiterated. The ld. DR fairly conceded that the facts and circumstances of the instant case are mutatis mutandis similar to those of the earlier years. Since the issue under consideration is fully covered by the orders passed by the Tribunal for the preceding years, respectfully following the precedent, we countenance the view taken by the ld. CIT(A). This issue is, therefore, decided in favour of the assessee. Disallowance of depreciation - AO treated the so-claimed agricultural income as business income, he, therefore, disallowed differential deprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r by the CIT(A), we set-aside the impugned order and direct the AO to consider taxability of Foreign Exchange Fluctuation Gain from these four items in accordance with the view canvassed by the Tribunal in assessee s own for the A.Y. 2011-12 as discussed above. - ITA No. 1477/PUN/2017, C.O. No. 03/PUN/2020 - - - Dated:- 31-8-2020 - Shri R.S. Syal, Vice President And Shri Partha Sarathi Chaudhury, Judicial Member For the Assessee : Shri Rajan Vora Shri Rajendra Agiwal For the Revenue : Ms. Kesang Y. Sherpa ORDER PER R.S.SYAL, VP : This appeal by the Revenue and Cross Objection by the assessee emanate from the order dated 17-03-2017 passed by the CIT(A)-1, Pune in relation to the assessment year 2014-15. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot amount to agricultural activities. The ld. CIT(A), relying on the order passed by his predecessor for A.Y. 2011-12, allowed the claim of the assessee. The Revenue has approached the Tribunal against such a point of view. 4. We have heard both the sides through virtual court and gone through the relevant material on record. It is observed that an identical issue came up for consideration before the Tribunal in assessee s own case for the A.Y. 2011-12. A copy of the order passed by the Tribunal has been placed at page 1 onwards of the paper book. The Tribunal has considered the nature of activity carried out by the assessee and after taking into account Explanation 3 to section 2 (1A), inserted by the Finance Act, 2009, has held that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal income. The ld. CIT(A) vacated the view point of the AO. 6. Having heard both the sides and gone through the relevant material on record, it is found that the primary ground on which the AO made disallowance of depreciation is that of canvassing the view about the income of ₹ 5.66 crore as business income as against agricultural income claimed by the assessee. Since we have approved the opinion of the ld. CIT(A), reversing the view of the AO on this issue, the reason for disallowance of depreciation to the above extent, ceases to exist. Since the entire income from operations has been held by us as agricultural income, the fortiori is that the full amount of depreciation at ₹ 1.64 crore should get reduced from the comput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; and Revaluation at the year-end (unrealised gain). It held that the Foreign Exchange Fluctuation Gain in relation to the Capital expenditure; Revenue creditors; and Revaluation at the year-end was chargeable to tax. Only Foreign Exchange Fluctuation Gain from Revenue debtors was held to be in the nature of agricultural income and hence, not taxable. The ld. AR has placed on record similar details for the year under consideration at page 160 of the paper book. Since such classification of the Foreign Exchange Fluctuation Gain under four categories by the assessee, as placed on record at page 160 of the paper book, have been examined neither by the AO nor by the CIT(A), we set-aside the impugned order and direct the AO to consider taxabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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