Disallowance on account of foreign exchange fluctuation loss - ...

Revenue's Stance on Forex Gains Inconsistent with Previous Years; Principle of Consistency Should Apply.

December 11, 2021

Case Laws Income Tax AT

Disallowance on account of foreign exchange fluctuation loss - It is an undisputed fact that for the assessment year 2012-13, 2013-14 and 2016-17, the assessee declared loss on account of foreign exchange fluctuation which was accepted by the Assessing Officer; whereas for the assessment year 2015-16, there was a gain to the tune of ₹ 4.65 crores, which the assessee offered to tax. Having accepted the same for two assessment years earlier and two years subsequent to the current assessment year, it is not open for the Revenue to take an altogether different stand for the current year and the Revenue is expected to follow the rule of consistency - AT

View Source

← Previous Next →

Disallowance on account of foreign exchange fluctuation loss - ...

Revenue's Stance on Forex Gains Inconsistent with Previous Years; Principle of Consistency Should Apply.

December 11, 2021

Case Laws Income Tax AT

You may also like:

The ITAT Hyderabad addressed the issue of determining the correct head of income for gains on the sale of property, whether it should be classified as business income or...

The case involved determining whether gains from the sale of shares allotted in an IPO should be classified as Short-Term Capital Gains (STCG) or business income. The...

Amendment of section 44AD. - computing profits and gains of business on presumptive basis - where an assessee declares profit for any previous year in accordance with...

In a recent High Court case, the issue of whether advertisement expenditure could be considered as allowable revenue expenditure was discussed. The ITAT allowed the...

Plea of res judicata - Tribunal rightly noted the law that rule of res judicata is not applicable to income tax proceedings but the principle of consistency will...

Capital Gain - Transfer u/s 2(47)(v) - assessment year - AO himself has given credit for the amount of capital gains declared for the assessment year 2013-14, while...

The ITAT upheld the CIT(A)'s order allowing deduction u/s 11, following the 'Principle of Consistency'. Despite payments to specified persons u/s 13(1)(c), the Revenue...

The High Court held that the NOIDA-II unit was entitled to deduction u/s 10A of the Income Tax Act for its profits and gains derived from the NOIDA-I unit. The court...

Disallowance of prior period expenditure - Mercantile system - Matching principles of accounting - The assessee had claimed deduction for such expenses, citing a...

Taxpayer sold shops during AY 2017-18 and reported gains as Long Term Capital Gains (LTCG) in tax returns. While AO initially accepted this classification under section...

Income accrued in India - Benefit of consistency on the basis of orders for earlier assessment years - There was complete silence on this issue by the assessing officer...

Disallowance u/s 57 - disallowing of interest paid to bank which has been claimed by assessee against the income from other sources - The claim for netting off of...

It is true that principles of res judicata do not apply to income tax proceedings, but principles of consistency apply. So, if an AO wants to deviate from the path...

The ITAT ruled in favor of the assessee real estate developer, rejecting the Revenue's attempt to apply the Percentage Completion Method under Section 43CB. The Tribunal...

Assessee claimed deduction u/s 54F for amount deposited in Capital Gain Account Scheme (CGAS) on transfer of capital asset. Unutilized amount withdrawn from CGAS account...

Quick Updates: