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TMI Blog2020 (12) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... 31.3.2013 is at ₹ 20,63,782/- and for the year ended 31.3.2014 cumulatively it is ₹ 62,60,284/-. Thus, it mean that the loss relate to the assessment year under consideration is only ₹ 41,96,702/-. Income Computation Disposal Standard-6 has relevance to the year under consideration and the placing of reliance by A.R. on this standard is misplaced. Coming to the allowability of deduction, in our opinion, assessee is entitled for forex loss relevant to the assessment year under consideration only to the tune of ₹ 41,96,702/- and not entire amount of ₹ 62,60,285/-. Accordingly, we direct the A.O. to grant deduction towards forex loss to the tune of ₹ 41,96,702/- only. This ground of assessee is partly allowed. - ITA No.499/Bang/2020 - - - Dated:- 11-11-2020 - Shri N.V. Vasudevan, Vice President And Shri Chandra Poojari, Accountant Member For the Appellant : Shri Anil Rao, A.R. For the Respondent : Shri Kannan Narayanan, D.R. ORDER PER CHANDRA POOJARI, ACCOUNTANT MEMBER: This appeal by the assessee is directed against order of CIT(A)- 7 dated 30.01.2020 for the A.Y. 2014-15. 2. The facts of the case are that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt financial year. The appellant was very much aware of its transactions in foreign exchange with its associated concerns and liabilities in respect of these transactions were reflected in the balance sheet for the relevant previous year i.e. year ended 31.3.2014. The financial statements were subjected to audit also. As per notes to the accounts for the year ended 31.3.2014, a specific mention that has been made about recognition of foreign currency transactions is as below: 24.7.1 Initial recognition Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. 24.7.2. Conversion Foreign currency items are reported using the closing rate. Non monetary items which rate carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non monetary items which are carried at fair value or other valuation denominated in a foreign currency are reported using the exchange when the values were determined. 24.7.3.Exchange differences Exchan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.2016. This was not allowed by lower authorities on the reason that deduction claimed belatedly and also this was not relating to the assessment year under consideration. He drew our attention to page 32 of the paper book showing the quantification of loss on balance sheet at ₹ 62,60,284/- and also submitted that in assessment year 2013- 14, it was ₹ 20,63,782/- and in assessment year 2014-15 it was reached to ₹ 62,60,284/- and same to be allowed for the assessee as it failed to claim the same in the original return of income. He submitted that the assessee is entitled to claim this kind of deduction and the appellate authorities have the discretion whether or not to permit such addition issue claimed to be raised. 6. It was submission of the Ld. A.R. that the necessary evidence in respect of claim is made, such claims through a letter to be accepted by the A.O. Further, he submitted that even if it is not accepted by the A.O. on account of no claim in return of income, same to be considered by the appellate authorities and officers of the department must not take the advantage of ignorance of the assessee and it is their duty to assess the tax payer in every ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Further, it was held in the case of Goetze India Ltd. Vs. CIT 284 ITR 323 (SC) that claims need not be accepted by A.O. when made by assessee through a letter, if same is not claimed in return filed u/s 139 of the Act. However, this is not applicable to the appellate authorities. The first appellate authorities could have considered the claim of the assessee in view of the judgement of NTPC cited (supra). There is a distinction between revised return and correction of return. If the assessee files some application for correcting the return filed or making amends therein, it would not mean that he has filed a revised return. It will retain the character of the original return. But once a revised return is filed, the original return must be taken to have been withdrawn and could have been substituted by a fresh return for the purpose of assessment. In the present case, the assessee filed a letter seeking the deduction towards forex loss. The A.O. outrightly rejected it without discussing anything about it. On the contrary the CIT(A) observed that the claim is not relates to the assessment year under consideration and it relates to the earlier assessment year. We have gone throu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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