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TMI Blog2024 (6) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... capital loan availed from banks and also foreign currency long term loan availed from foreign entities for funding indigenous assets. The amount of forward premium of following accounts is allowable because these are for the indigenous assets and not imported asset. But for the purpose of verification, we are remitting this issue back to the file of the AO who will verify the forward premium on foreign currency working capital availed from banks, forward premium of foreign currency long term loans availed for funding indigenous assets and also forward premium of foreign currency long term loan for funding imported assets. AO will verify these from the invoices and then in case, he finds that this forward premium is for the purchase of indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ahavir Singh, Vice President And Shri Amitabh Shukla, Accountant Member For the Applicant : Shri R. Vijayaraghavan, Advocate For the Respondent : Shri AR.V. Srinivasan, Addl.CIT ORDER PER MAHAVIR SINGH, VICE PRESIDENT: By way of these Miscellaneous Application in MA No.129/CHNY/2023, the assessee has requested for rectification of mistake in Tribunal s order dated 17.05.2023, because according to assessee there is mistake apparent from record in the order as regards to scheme of forward premium paid for the turnover of foreign exchange contract whether falls u/s. 43A of the Income Tax Act, 1961 (hereinafter the Act ) or not. 2. The ld.counsel for the assessee before us pointed out that the Tribunal held that the additional amount paid as di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sset from country outside India and the exchange loans arose only on account of premium paid on forward contract and hence, the same should be treated as revenue expenditure. The ld.counsel for the assessee stated that the provisions of section 43A of the Act would apply only to the additional liability arises on account of foreign exchange fluctuation in respect of imported assets and it will not apply to foreign exchange fluctuations in regard to working capital loan for acquiring domestic assets. In view of the chart submitted above, argued that the forward premium is an allowable deduction as held by Hon ble Delhi High Court in the case of Industrial Finance Corporate of India reported in 228 CTR 132 (Del). On the other hand, the ld. Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn currency long term loan for funding imported assets. The AO will verify these from the invoices and then in case, he finds that this forward premium is for the purchase of indigenous assets, the AO will allow the same as revenue expenditure. In term of the above, we rectify our mistake and the appeal of the assessee in ITA No.896/CHNY/2017 is allowed for statistical purposes. Accordingly, the miscellaneous application of the assessee is allowed. MA No.151/CHNY/2023 4. By way of this Miscellaneous Application, the assessee has requested for rectification of mistake apparent from record in the order of the Tribunal dated 17.05.2023 in confirming the disallowance enhanced by CIT(A) of exempt income of Rs. 18,28,080/- as against disallowed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D-IT. The ld.counsel then took us through the Tribunal order and stated tha the Tribunal has not at all adjudicated this ground and the relevant findings are recorded in the miscellaneous application of the assessee, wherein simpliciter the Tribunal has restricted the disallowance qua exempt income following the Hon ble Delhi High Court order in the case of Cheminvest Ltd., supra. Hence, non- adjudication of ground of enhancement constitute mistake apparent from record in the order of the Tribunal. 6. When this was pointed out to ld. Senior DR, he could not controvert the above fact situation. 7. After hearing rival contentions and going through the facts of the case, we noted that the Tribunal has committed mistake apparent from record in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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