AMMEGA BELTING INDIA PVT LTD,CHENNAI vs. ITO CORP CIRCLE 2(1), CHENNAI

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ITA 620/CHNY/2023Status: DisposedITAT Chennai03 June 2024AY 2018-19Bench: HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member)2 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal admitted the additional evidence, including audited financial statements and loan utilization details. The issue was restored to the AO for fresh adjudication in light of these new evidences.

What were the facts?

The assessee claimed a forex fluctuation loss, which was disallowed by the Assessing Officer (AO) and confirmed by the CIT(A). The AO's reasons included the contingent nature of the ECB loan, lack of agreement, and utilization for capital assets. The assessee sought to admit additional evidence before the ITAT.

What were the issues?

Whether forex fluctuation loss on an ECB loan is allowable, and if additional evidence can be admitted at the appellate stage.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 143(3A),Section 143(3B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आयकर अपीलीय अिधकरण “ए” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय �ी महावीर िसंह, उपा ! एवं माननीय �ी मनोज कुमार अ%वाल ,लेखा सद( के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ (िनधा)रणवष) / Assessment Year: 2018-19) Ammega Belting India Pvt. Ltd., Income Tax Officer बनाम/ Vs. 25A/1/3, SIDCO Industrial Estate, Corporate Ward 2(1), Ambattur, Chennai – 600 098. Chennai. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AACCH-4757-L (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओर से/ Appellant by : Shri Y. Sridhar, (F.C.A)– Ld.AR � थ� कीओर से/Respondent by : Shri AR.V.Srinivasan (Addl.CIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 21-05-2024 घोषणा की तारीख /Date of Pronouncement : 03-06-2024 आदेश / O R D E R PER BENCH

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 20-03-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Act on 06-04- 2021. The sole grievance of the assessee is disallowance of forex fluctuation loss. The Ld. AR has pleaded for admission of additional evidences which has been opposed by Ld. Sr. DR.

2.

The Ld. AO disallowed impugned loss on the ground that ECB loan was payable in future and the claim was contingent in nature. The assessee did not produce the relevant agreement. Further, the loan was utilized for purchase of capital assets and therefore, the same was capital expenditure. The assessee also did not follow the mandate of AS- 11 as issued by ICAI. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us.

3.

In the additional evidences, the assessee has filed audited financial statements as on 31-03-2018 and details of consumption of loan amount towards import of machinery along with certain annexures. The Ld. AR also relies on Income computation and disclosure standards. All these evidences are being filed for the first time. Apparently, the same shall have material bearing on the claim of the assessee. Therefore, we admit the same and restore the issue back to the file of Ld. AO for fresh adjudication in the light of these evidences. The assessee is directed to substantiate its case. 4. The appeal stand allowed for statistical purposes. Order pronounced on 3rd June, 2024 Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (MAHAVIR SINGH) लेखा सद5 / ACCOUNTANT MEMBER उपा78 / VICE PRESIDENT चे:ई Chennai; िदनांक Dated : 03-06-2024 RSR आदेश की Gितिलिप अ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयुB/CIT Chennai 4. िवभागीय �ितिनिध/DR 5. गाडG फाईल/GF

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