9911796707
TMI Blog2025 (1) TMI 1495X X X X Extracts X X X X X X X X Extracts X X X X ..... pleting the Assessments were furnished by the petitioner in response to specific notices issued to the petitioner u/s 143(2). Specifically, information relating to Foreign Currency transactions and the loss based on which the expenses was claimed as the deduction under Section 37 of the Act was claimed was subject matter of the query by the Department pursuant to which Assessment Order came to be passed on 17.12.2018. Merely because, no opinion is expressed in the Assessment Order would not mean that the Assessment was completed without forming any opinion on the queries raised by the Department before the Assessment was completed. The Courts have taken a categorical stand that it cannot be assumed that Assessments were completed without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt at which the forward contract is booked to secure against the risk of adverse fluctuation which as per AS 11 has to be accounted for separately and to be amortised over the life of the contract. It is not the actual exchange fluctuation loss to be recognised in the statement of Profit or loss. Hence, the amount debited in the Profit and Loss account should not be allowed as deduction and therefore the Premium on FC and Options and Foreign Exchange Loss is required to be disallowed and brought to tax. As it is notional in nature, the above needs to be disallowed." 3. The aforesaid reasons was communicated to the petitioner as an annexure to a Notice dated 30.07.2021 issued under Section 143(2) read with Section 147 of the Income Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000 4,000,000 Profit/(Loss) After Tax 53,540,266 14,809,447 Earnings Per Share (Basic & Diluted) (Face Value Rs. 100/- each fully paid) 63 17 as other expenses for a sum of Rs. 50,68,12,448/-. 5. Under the heading other expenses in Note 19, expenses towards following has been disclosed:- (i) Foreign Exchange Loss : Rs. 26,635,063/- (ii) Premium on FC & Options : Rs. 57,862,116/- 6. The learned counsel for the petitioner drew attention to Note 19 to statement of Profit and Loss Account for the year ended on 31.03.2016 for other expenses. The other expenses in Note 19 relating to Foreign Exchange Loss of Rs. 26,635,063/- and Premium on FC & Options of Rs. 57,862,116/-. 7. It is further submitted that in the Notes forming par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject of the aforesaid Assessment order dated 17.12.2018. Once again, the petitioner was called upon to furnish certain details including break up of other expenses claimed in the return to which the petitioner has replied on 13.04.2018 and filed it as Annexure-8 in the aforesaid reply. It is in this background, the Assessment was completed on 17.12.2018 for the Assessment Year 2016-2017. It is therefore submitted that the impugned Notice dated 26.03.2021 was inspired from change of opinion. 9. On the other hand, the learned Standing Counsel for the respondents would submit that there was no formation of opinion on the other expenses when the Assessment order was passed on 17.12.2018 under Section 143(3) of the Income Tax Act, 1961 and ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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