Principal Commissioner of Income-tax-1 v. Albasta Wholesale Services Limited
[Citation -2019-LL-0719-77]
| Citation | 2019-LL-0719-77 |
|---|---|
| Appellant Name | Principal Commissioner of Income-tax-1 |
| Respondent Name | Albasta Wholesale Services Limited |
| Court | HIGH COURT OF DELHI AT NEW DELHI |
| Relevant Act | Income-tax |
| Date of Order | 19/07/2019 |
| Assessment Year | 2011-12 |
| Judgment | View Judgment |
| Keyword Tags | foreign exchange fluctuation loss |
| Bot Summary: | The short question urged by the Revenue is whether the Income Tax Appellate Tribunal erred in confirming the order of the Commissioner of Income Tax CIT and allowing the claim of the Assessee of Rs. 35,42,20,000/- as foreign exchange fluctuation loss ITA 666/2019 Page 1 of 3 under Section 37 of the Act 4. Learned counsel for the Revenue has drawn the attention of the Court to the order dated 24th March, 2014 passed by the Assessing Officer under Section 143(3) of the Act setting out the case of the Assessee as regards the above loans. The Assessee has indicated the amount given by it as loan to its subsidiary in the United States of America and the amount realized on the liquidation of such subsidiary and claimed the difference therein as exchange loss. Without conducting any inquiry of the fact whether there was any loss on account of the fluctuation in the foreign exchange and rate of the US Dollar within the relevant time, the AO simply disallowed the above amount. The disallowance could not have been without a preceding inquiry into the claim made by the Assessee. In fact the ITAT in its order noted the submission on behalf of the Assessee that as against US 10 million given as loan it received US10,01,50,000 and US 1,50,000 was offered as income of the Assessee for the current AY which was accepted by the AO. However, due to fluctuation in the rate of vis-a-vis Rupee, the Assessee realized Rs. 443,07,10,000/-. No substantial question of law arises from the impugned order of the ITAT. The appeal is accordingly dismissed. |