SHRI SYED ASIF ALI,LUCKNOW vs. ACIT-1, LUCKNOW

ITA 400/LKW/2020Status: DisposedITAT Lucknow15 July 2026AY 2013-1411 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the shared foreign exchange gain was a business expenditure incurred under a contractual obligation and should not be taxed as income. The Tribunal also restricted certain disallowances made by the lower authorities on other expenses.

What were the facts?

The assessee claimed a foreign exchange fluctuation gain which was partially shared with buyers as per an agreement. The Assessing Officer added back the shared portion, considering it as undisclosed income. The CIT(A) upheld this addition.

What were the issues?

Whether foreign exchange gains shared with buyers as per agreement constitute taxable income. Whether certain expense disallowances were justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 37,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘A’, LUCKNOW

Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA

For Appellant: Shri B. P Yadav, Advocate

PER ANADEE NATH MISSHRA:A.M. (A) This appeal vide I.T.A. No.400/Lkw/2020 has been filed by the assessee for assessment year 2013-14 against impugned appellate order dated 26.08.2020 passed by learned Commissioner of Income Tax (Appeals) -1, Lucknow [“CIT(A)” for short]. In this appeal, the assessee has raised the following grounds: -

“1. Because, the Id. AO and Id. CIT(A) has without knowing the facts and circumstances of the case he has passed the assessment order and upheld the same by the Id. CIT(A), then therefore is bad in law.

2.

Because, the Id. Assessing Officer has erred while making addition on fluctuation of foreign exchange gain rate as income from appellant of

The order continues below.

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