THE VARDHMAN STAMPINGS PVT. LTD.,,AHMEDABAD vs. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(2),, AHMEDABAD

ITA 362/AHD/2020Status: DisposedITAT Ahmedabad16 January 2025AY 2014-1531 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the PCIT's finding that the assessment order was erroneous was not justified. The Tribunal found that the issues raised by the PCIT were debatable and that the Assessing Officer (AO) had made a considered decision. Therefore, the PCIT's revisionary order was set aside.

What were the facts?

The assessee claimed a loss on foreign currency derivative transactions. The Principal Commissioner of Income Tax (PCIT) invoked revisionary powers under Section 263, holding the assessment order erroneous for allowing this loss without proper inquiry. The PCIT believed the loss was notional 'marked to market' loss and thus not allowable.

What were the issues?

Whether the PCIT was justified in invoking Section 263 to revise an assessment order allowing a loss on foreign currency derivative transactions, considering it was a debatable issue properly examined by the AO.

Which sections of the Income-tax Act were involved?

Section 263,Section 43(5),Section 73

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SMT.ANNAPURNA GUPTA & SHRI T.R. SENTHIL KUMAR

For Appellant: Shri Manish J. Shah, Shri Rushin Patel, ARs
For Respondent: Shri H. Phani Raju, CIT-DR
Hearing: 18/10/2024Pronounced: 16/01/2025

PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER The above two appeals have been filed by the Assessee against order passed by the Pr.Comissioner of Income Tax-4, Ahmedabad (Ld.Pr.CIT" for short) in exercise of his revisionary power under section 263 of the Income Tax Act, 1961 ("the Act" for short) pertaining to assessment years 2014-15 & 2015-16 .

2.

At the outset, it was common ground that in both the orders passed for the two assessment years, the Ld.PCIT found the assessment order passed by the AO to be erroneous causing pre

The order continues below.

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