DCIT (OSD)8(2), MUMBAI V. PRIORITY JEWELS P.LTD, MUMBAI

ITA 1640/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1992 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Next Hearing Date: 15-03-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 10-03-2014
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Assessee Lawyers: R K SINHA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & SHRI PAWAN SINGH (JM) I.T.A. NO. 1640 /MUM/ 2014 (ASSESSMENT YEAR 20 1 0 - 11 ) DCIT 8(2) ROOM NO. 209/216A 2 ND FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. VS. M/S. PRI ORITY JEWELS PVT. LTD. LEVEL - 2, PLOT NO. D6 STREET NO. 20 ANDHERI EAST MUMBAI - 400 093. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAECP4118K ASSESSEE BY SHRI R.K. SINHA DEPARTMENT BY MS. BEENA SANTOSH DATE OF HEARING 1 6 .1 1 . 201 6 DATE OF PRONOUNCEMENT 16 . 11 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - THE APP E AL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 20.12.2013 PASSED BY THE LEARNED CIT(A) - 17, MUMBAI AND IT RELATES TO A.Y. 2010 - 11. THE REVENUE IS AGGRIEVED BY THE DECISION OF THE LEARNED CIT(A) IN DELETING THE DISALLOWANCE OF ` 33,04,768 CLAIMED BY THE ASSESSEE AS UNREALISED FOREIGN EXCHANGE LOSS. 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURE OF DIAMONDS STUDDED JEWELLERY AND OTHER RELATED PRODUCTS. SUNDRY DEBTORS AC COUNT HELD IN FOREIGN CURRENCY WAS REVALUED BY THE ASSESSEE AS ON THE BALANCE SHEET DATE AND THE SAME HAS RESULTED IN LOSS ` 33,04,768/ - . THE ASSESSING OFFICER DISALLOWED THE LOSS HOLDING THAT THE SAME IS NOTIONAL IN NATURE AND THE LEARNED CIT(A) HAS DELET ED THE LOSS BY FOLLOWING DECISION RENDERED BY HON'BLE SUPREME COURT IN THE CASE OF WOODWARD GOVERNOR INDIA PVT. LTD. (2009) 312 ITR 254. THE REVENUE IS AGGRIEVED BY THE DECISION OF THE LEARNED CIT(A). M/S . PRIORITY JEWELS PVT. LTD. 2 3. HAVING HEARD THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE ORDER PASSED BY THE LEARNED CIT(A) ON THE IMPUGNED ISSUE DOES NOT CALL FOR ANY INTERFERENCE , SINCE THE LEARNED CIT(A) HAS FOLLOWED THE DECISION RENDERED BY HON'BLE SUPREME COURT IN THE CASE OF WOODWARD GOVERNOR INDIA PVT. LTD. (SUPRA). ACCOR DINGLY, WE UPHOLD THE ORDER PASSED BY THE LEARNED CIT(A) ON THIS ISSUE. 4. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED ORDER HAS BE EN PRONOUNCED IN THE COURT ON 1 6 .1 1 .2016 SD/ - SD/ - (PAWAN SINGH) (B.R.BASKARAN) JUDICI AL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 1 6 / 1 1 / 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. G UARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS