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TMI Blog2023 (4) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... aphical error which do not call for any addition/disallowance. Thus, no interference is called for in the findings of the ld. CIT(A). Therefore, revenue ground is dismissed. Addition for notional loss arising on account of foreign exchange loss - alleged claim of foreign currency loss is notional in nature and the same has been calculated for the outstanding foreign currency payable/receivable by the assessee for the contract which have not expired at the close of the year - HELD THAT:- In the instant case, such contract which did not expire on 31.03.2013, the foreign currency loss has been calculated, considering the currency value on the last date of the financial year. In the subsequent period, when these contracts expire or the liability to be payable or the claim on receiving from debtors is crystallized actual gain/loss is calculated and routed through the profit and loss account. Since, the said claim is notional and has been claimed in order to make the true and fair presentation of the financial statement, therefore, respectfully following the ratio laid down in the case of Woodward Governor India Pvt Ltd [ 2009 (4) TMI 4 - SUPREME COURT] no infirmity in the findings of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T, LTU-1, Chennai. 2. Facts in brief are that the assessee is a limited company engaged in manufacturing and marketing petrochemicals viz. Linear Alkyl Benzene, Epicholoorohydrin and Chemical intermediates - Caustic Soda and Chlorine, filed nil income return filed on 22.11.2012 for the relevant assessment year 2013-14. The case was selected for scrutiny followed by serving of notice u/s. 143(2) & 142(1) of the Act. Ld. AO, after considering submissions of the assessee completed the assessment proceedings making various additions and disallowance amounting to Rs. 6,05,22,819/-, computing the income of the assessee in the following manner: Returned Income Nil Add: 1. Disallowance u/s. 92CA 73,74,582/- 2. Disallowance u/s. 14A r.w.s. rule 8D 1,24,61,660/- 3. Disallowance of notional loss 1,93,65,000/- 4. Addition in difference in closing stock 5,77,270/- 5. Addition on long term capital gains 2,07,44,307/- 6,05,22,819/- Assessed Income 6,05,22,819/- 3. The assessee challenged these additions before the ld. CIT(A) and partly succeeded. 4. Now the revenue is in appeal raising the following grounds of appeal: 1. The order of the learned CIT(A) is contrary to law an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing officer be restored. 5. The ld. DR vehemently argued supporting the findings of the Assessing Officer and specifically with regard to the addition for difference in closing stock, it was stated that there was a mismatch in the quantity mentioned in the audit report and the same needs to be rectified, if the assessee is claiming so. Similarly, with regard to the addition for long term capital gain which was on account of profit on sale of shares, it was submitted that there was a sale agreement for sale of share at a agreed price, but the consideration received was less for which no details have been filed by the assessee. 6. On the other hand, ld. Counsel for the assessee vehemently argued supporting the detailed findings of the ld. CIT(A). 7. We have heard rival contentions, perused records placed before us. 8. The revenue's ground no. 1 is general in nature which needs no adjudication. 9. Ground no. 2.1 to 2.4 of revenue's appeal relates to the disallowance u/s. 14A of the Act. During the course of hearing ld. Counsel for the assessee submitted that the assessee company has not earned any exempt income during the year and this fact was not controverted by ld. DR. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rency value on the last date of the financial year. However, in the subsequent period, when these contracts expire or the liability to be payable or the claim on receiving from debtors is crystallized actual gain/loss is calculated and routed through the profit and loss account. Since, the said claim is notional and has been claimed in order to make the true and fair presentation of the financial statement, therefore, respectfully following the ratio laid down by the Hon'ble Supreme Court in the case of CIT vs Woodward Governor India Pvt Ltd (Supra), we find no infirmity in the findings of the ld. CIT(A) deleting the disallowance of Rs. 1,93,65,000/-. Thus, ground no. 4 raised by the revenue is dismissed. 13. Ground no. 5 of revenue appeal related to deletion of addition made on account of long term capital gains. Facts in brief are that the assessee entered into a transaction for sale of 2,75,44,955 shares of SEPC Electric Power Corporation, for a consideration of Rs. 47,76,60,90,000/-. However, the actual consideration received was Rs. 46,64,50,584/- which was calculated @ 16.93 per share. The short fall in the sale consideration i.e., actual sales, less than the one agreed as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear and the invoice was raised on 09.10.2011. The ld. AO, was of the view that since the invoice relates to financial year 2011-12, expenditure claimed cannot be allowed during the year under appeal. However, ld. CIT(A) accepted submission filed by the assessee observing that the advances was given during the financial year 2011-12 to MAPE Advisory Group, but since, the sale of equity shares finally concluded during the financial year 2012-13 relevant to assessment year 2013-14 claim is justified to calculate the long term capital gains on the sale transaction. 15. We therefore are of the view that expenditure towards professional fees paid for the said sale transaction has been rightly claimed during the year under appeal, because the genuineness of the expenditure is not in doubt and the facts as narrated by the assessee are found to be correct. We therefore, confirm the findings of the ld. CIT(A) allowing the claim of cost of Rs. 1,05,85,891/- incurred for effecting transaction of sale of equity shares. Thus, ground no. 5 raised by the revenue is partly allowed for statistical purposes. 16. Other grounds being general and consequential in nature needs no adjudication. 17. In ..... 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