ACIT, Circle-51(1), New Delhi v. Nalini Jewellers
[Citation -2019-LL-0902-43]
| Citation | 2019-LL-0902-43 |
|---|---|
| Appellant Name | ACIT, Circle-51(1), New Delhi |
| Respondent Name | Nalini Jewellers |
| Court | ITAT-Delhi |
| Relevant Act | Income-tax |
| Date of Order | 02/09/2019 |
| Assessment Year | 2012-13 |
| Judgment | View Judgment |
| Keyword Tags | opportunity of being heard to the assessee • proportionate interest • business of trading • speculative profit • foreign currency • forward contract • interest free advance • disallowance of expenses • disallowance of depreciation • notional interest |
| Bot Summary: | It filed its return of income on 19th July, 2012 declaring total income of Rs.1,34,82,202/- The Assessing Officer completed the assessment u/s 143(3) on 5th March, 2015 determining the total income at Rs.2,92,31,520/- wherein he made the following additions:- ITA No.2395/Del/2016 i) Rs.1,54,29,231/- on account of gain on account of forward contracts in respect of foreign currency being speculative profits; ii) Rs.1,72,524/- being proportionate interest on account of interest free advances given; iii) Rs.80,205/- on account of disallowance of various expenses; and iv) Rs.67,364/- on account of disallowance of depreciation. Aggrieved with such part relief granted by the CIT(A), the Revenue is in appeal before the Tribunal challenging the deletion of Rs.1,72,524/- and holding that the gain of Rs.1,54,29,231/- derived on account of forward contracts in respect of foreign currency being speculative profit can be set off against the loss of Rs.62,94,000/- debited in gold desk account. Shri Nikhil Jain, Partner of the assessee firm appeared in person and submitted that the appeal filed by the assessee against the order of the Tribunal for assessment year 2010-11 have been set aside by the Hon'ble High Court to the file of the Assessing Officer. The appeal of the assessee for the impugned assessment year has been restored by the Tribunal to the file of the Assessing Officer with certain 2 ITA No.2395/Del/2016 directions. DR has no objection for restoring the issues to the file of the Assessing Officer for fresh adjudication in the light of the direction of the Tribunal. In view of the consent by both the sides that the matter should be restored to the file of the Assessing Officer in the light of the decision of the Hon'ble High Court in assessee s own case for assessment year 2010-11, we restore both the issues raised by the Revenue in the grounds of appeal to the file of the Assessing Officer for fresh adjudication. Needless to say, the Assessing Officer shall give due opportunity of being heard to the assessee and decide the issue as per fact and law. |