DDIT, New Delhi V. M/s. Skoda Exports Co. Ltd., New Delhi

ITA 2185/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65309 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 05-07-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 02-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR SUNIL GUPTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R.P.TOLANI, JUDICIAL MEMBER AND SHRI S.V.MEHROTRA, ACCOUNTANT MEMBER I.T.A .NO.2185/DEL/2011 (ASSESSMENT YEAR-2005-06) DEPUTY DIRECTOR OF INCOME-TAX, VS. M/ S SKODA EXPORTS CO. LTD. CIRCLE-2(2), 56-M, NITI MARG, NEW DELHI, CHANAKYA PURI, NEW DELHI PAN-AAACS2984A ( APPELLANT) (RESPONDENT) APPELLANT BY: DR. SUNIL GUPTA, SR. DR RESPONDENT BY: SH. SANJAY SOOD, CA ORDER PER S.V.MEHROTRA, AM THIS IS AN APPEAL FILED ON 02.05.2011 BY THE DEPART MENT AGAINST THE ORDER OF LD. CIT(A), NEW DELHI DATED 24.01.2011 REL ATING TO ASSESSMENT YEAR 2005-06. 2. THE ASSESSEE COMPANY, A TAX RESIDENT OF CZECH RE PUBLIC, IN THE RELEVANT ASSESSMENT YEAR, WAS INVOLVED IN THE ACTIV ITY OF CONSTRUCTION AND MANAGEMENT OF VARIOUS PROJECTS. IT HAD FILED ITS R ETURN OF INCOME DECLARING A LOSS OF RS.20,80,09,612/-. THE ASSESSMENT WAS COMP LETED AFTER MAKING FOLLOWING ADDITIONS/DISALLOWANCES:- I.T.A .NO.2185/DEL/2011 2 (I). DISALLOWANCE OF EXPENSES COVERED U/S 44(C) OF RS.85,00,000/- (II). INTERESTS AND FINANCIAL CHARGES PAID/PAYABLE TO CSOB (CESKOSLOVENSKA OBCHODNI BANKA) OF RS.88,52,000/-. 3. LD. CIT(A) HAS PASSED A CONSOLIDATED ORDER FOR A YS 2004-05 AND 2005-06. WHILE DECIDING THE APPEAL AT PAGE 7, LD. CIT(A) HAS CLEARLY OBSERVED THAT THE DISALLOWANCE, INTER ALIA, RELATI NG TO EXPENSES CLAIMED FOR EXCHANGE RATE FLUCTUATION IS RELEVANT ONLY FOR AY 2 004-05. THE DEPARTMENT HAS TAKEN FOLLOWING GROUNDS OF APPEAL IN AY 2005-06 :- (1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CI T(A) HAS ERRED IN GIVING RELIEF ON ACCOUNT OF EXCHANGE R ATE FLUCTUATION WITHOUT A PERUSAL OF THE DETAILED WORKI NG OF SUCH LOSS, AND THE REASON FOR WHICH THE ASSESSING O FFICER HAD MADE THIS DISALLOWANCE. 4. THUS, THIS GROUND IS MIS-CONCEIVED AS NO SUCH IS SUE WAS INVOLVED IN AY 2005-06. 5. ACCORDINGLY THE DEPARTMENTS APPEAL IS DISMISSED AS BEING INFRUCTUOUS. SD/ SD/ (R.P.TOLANI) (S.V.MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17/08/2012 *AMIT KUMAR* I.T.A .NO.2185/DEL/2011 3 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI