ACIT, New Delhi V. M/s. Van Oord ACZ India Pvt. Ltd, New Delhi

ITA 1623/DEL/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9788 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 07-09-2009
• Assessment Year: 2004-2005
• Appeal Filed On: 20-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Assessee Lawyers: SANCHIT JOLLY
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H : NEW DELHI BEFORE SHRI RAJPAL YADAV, JM AND SHRI R.C.SHARMA, A M ITA NO.1623/DEL/2009 ASSESSMENT YEAR : 2004-05 ASSTT.COMMISSIONER OF INCOME TAX, CIRCLE-17(1), NEW DELHI. VS. M/S VAN OORD ACZ INDIA PVT.LTD., FLAT NO.204, 2 ND FLOOR, ARUNACHAL BUILDING, BARAKHAMBA ROAD, NEW DELHI. PAN NO.AABCV0555B. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANISH GUPTA, SR.DR. RESPONDENT BY : SHRI AJAY VOHRA AND SHRI SANCHIT JO LLY, ADVOCATES. ORDER PER R.C.SHARMA, AM : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 5.2.2009 FOR THE AY 2004-05 ALLEGING THE ACTION OF THE CIT(A) FOR DELETING DISALLOWANCE OF RS.3,10,77,721/- ON ACCOUNT OF LOSS ON FOREIGN EXCHANGE FLUCTUATION. 2. AT THE VERY OUTSET, LEARNED AR PLACED ON RECORD THE ORDER OF ITAT IN ASSESSEES OWN CASE FOR THE IMMEDIATELY PRECEDING A SSESSMENT YEAR, ORDER DATED 16.6.2008 WHEREIN EXACTLY SIMILAR ISSUE WAS CONSIDE RED BY THE TRIBUNAL AND AFTER RELYING ON THE DECISION OF HON'BLE JURISDICTIONAL H IGH COURT IN THE CASE OF WOODWARD GOVERNOR INDIA LTD. 201 CTR 354, THE ISS UE WAS DECIDED IN FAVOUR OF THE ASSESSEE. 3. WE HAVE CAREFULLY GONE THROUGH THE ORDER OF THE TRIBUNAL AND FOUND THAT FACTS AND CIRCUMSTANCES DURING THE YEAR UNDER CONSI DERATION ARE IN PARI-MATERIA AND THE PAYMENTS ALLEGED TO BE MADE WERE ON REVENUE ACCOUNT AND THE AO HAS ITA-1623/D/2009 2 ALSO DISALLOWED THE LOSS ON ACCOUNT OF EXCHANGE FLU CTUATION ON THE VERY SAME REASONING GIVEN BY HIM IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR. FOLLOWING WERE THE FINDINGS AND CONCLUSION OF THE TRIBUNAL IN ITS ORDER DATED 16.6.2008:- 6. AT THE TIME OF HEARING BEFORE US, NOBODY HAS PU T IN APPEARANCE ON BEHALF OF THE ASSESSEE. HOWEVER, TAK ING INTO CONSIDERATION THAT THE ONLY ISSUE INVOLVED IN THIS APPEAL IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. WOODWARD GOVERNOR INDIA PVT.LTD. 210 CTR 354 THIS APPEAL OF THE REVENUE IS BEING DISPOSED OF AFTER HEARING THE AGREED EVEN BY THE LEARNED DR, TH E ISSUE INVOLVED IN THE PRESENT CASE OF WOODWARD GOVERNOR INDIA PVT. LTD. (SUPRA) WHEREIN IT WAS HELD THAT THE ASSESSEE CAN CLAIM DED UCTION OF THE INCREASED LIABILITY IN THE REVENUE ACCOUNT AS A RES ULT OF FLUCTUATION IN THE RATE OF FOREIGN EXCHANGE. IT WAS ALSO HELD THA T THE INCREASE IN LIABILITY ON ACCOUNT OF FLUCTUATION IN THE RATE OF FOREIGN EXCHANGE REMAINING ON THE LAST DAY OF THE FINANCIAL YEAR IS NOT NOTIONAL OR CONTINGENT AND THEREFORE, IT CAN BE ALLOWED AS DEDU CTION. RESPECTFULLY FOLLOWING THE SAID DECISION OF HON'BLE JURISDICTIONAL HIGH COURT, WE UPHOLD THE IMPUGNED ORDER OF THE LEA RNED CIT(A) DELETING THE DISALLOWANCE MADE BY THE AO ON ACCOUNT OF ASSESSEES CLAIM FOR LOSS BECAUSE OF FOREIGN EXCHANGE FLUCTUAT ION AND DISMISS THIS APPEAL FILED BY THE REVENUE. 4. RESPECTFULLY FOLLOWING THE ORDER OF THE COORDINA TE BENCH WHICH WAS ALSO FOLLOWED BY THE CIT(A) WHILE ALLOWING THE ASSESSEE S CLAIM, WE DO NOT FIND ANY REASON TO INTERFERE IN HIS ORDER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON TRIBUNAL 1 1 TH SEPTEMBER, 2009. SD/- SD/- (RAJPAL YADAV) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 11.09.2009. VK. ITA-1623/D/2009 3 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR