9911796707
TMI Blog2021 (2) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act") relevant to the Assessment Year 2014-2015. 2. The only issue raised by the assessee is that the learned CIT(A) erred in confirming the addition made by the AO for Rs. 64,16,539/- under section 37(1) of the Act in respect of forward contract premium expenses. 3. Briefly stated facts are that the assessee in the present case is a limited company and engaged in the business of gas & air compression activities. The assessee in the year under consideration has incurred an expense of Rs. 64,16,539.00 on the forward contracts to hedge the instalments of two foreign currency loan in order to avoid any loss on account of foreign currency fluctuation. It was contended that the foreign currency loans were obtained by the assessee to acquir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned CIT (A) rejected the contention of the assessee and confirmed the order of the AO after having reliance on the order of Bangalore tribunal in the case of Archidply Industrial Ltd. Vs DCIT in ITA No. 1079/Bang/2011 vide order dated 17-7-2012. 6. Being aggrieved by the order of the learned CIT (A), the assessee is in appeal before us. 7. The learned AR before us filed a paper book running from pages 1 to 49 and submitted that the provisions of section 43A of the Act does not apply premium paid by the assessee to secure the payment of the liability in foreign currency on account of exchange fluctuation. 7.1 The learned AR further submitted that the similar claim was allowed by the revenue in the own case of the assessee in the ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In our considered view the provisions of section 43A of the Act deals with the loss/gain with respect to the liability in foreign currency for the assets acquired from a country outside India. In other words, it does not deal with respect to the cost incurred by the assessee to secure the loss which may arise at the time of repayment on account of fluctuation in the exchange rate with respect to foreign currency liability which was recorded in the books of the assessee in Indian currency. Thus once the provisions of section 43A of the Act are not applicable on the deduction claimed by the assessee in the given facts and circumstances, there cannot be any disallowance by invoking the provisions of section 43A of the Act. 9.2 It is a very ..... X X X X Extracts X X X X X X X X Extracts X X X X
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