D.C.I.T. 2(1), MUMBAI V. CANARA ROBECO ASSET MANAGEMENT CO. LTD., MUMBAI

ITA 8322/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9560 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 08-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A C TEJPAL
• Assessee Lawyers: K K VED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI BEFORE SHRI RAJENDRA SINGH, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER ITA NO. 8322/MUM/2011 (ASSESSMENT YEAR: 2008-09) ACIT - 2(1) AAYKAR BHAVAN, ROOM NO. 561, 5 TH FLOOR, M.K. ROAD, MUMBAI 400 020 VS M/S CANARA ROBECO ASSET MANAGEMENT CO. LTD. CONSTRUCTION HOUSE, 4 TH FLOOR, 5 WALCHAND HIRACHAN MARG, BALLARD ESTATE MUMBAI 400 001. PAN AAACC 2031 J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.C. TEJPAL RESPONDENT BY : SHRI K.K. VED DATE OF HEARING: 22.11.2012 DATE OF PRONOUNCEMENT: 22.11.2012 O R D E R PER VIVEK VARMA, JM: THE INSTANT APPEAL EMANATES FROM THE ORDER OF CIT(A) 4, M UMBAI DATED 09.09.2011, WHEREIN THE FOLLOWING GROUNDS HAVE BEEN T AKEN BY THE DEPARTMENT : I. THE ORDER OF THE CIT(A) IS OPPOSED TO LAW AND FACTS OF THE CASE. II. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW CIT(A) ERRED IN GIVING DIRECTION TO ALLOW NOTIONAL FOREIGN EXCHANGE LOSS FOR EXPENSES OTHER THAN THE SALARY OF MR. RAJESH NARULA WHEN THE ASSESSEE ITSELF VOLUNTARILY REVERSED THE ENTIRE ENT RY OF LOSS IN THE SUBSEQUENT ASSESSMENT YEAR. III. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT TH E TIME OF HEARING, THE DECISION OF THE CIT(A) MAY BE SET ASID E AND THAT OF THE AO RESTORED. 2. AS SEEN FROM THE GROUNDS, THE ONLY EFFECTIVE GROUNDS IS AGAINST THE DIRECTION GIVEN BY THE CIT(A) TO THE AO TO ALLOW NOTION AL FOREIGN ITA NO. 8322/MUM/2011 M/S CANARA ROBECO ASSET MANAGEMENT CO. LTD. 2 EXCHANGE LOSS FOR EXPENSES IN THE CIRCUMSTANCE THAT THE ENTIRE LOSS HAS BEEN REVERSED IN THE SUBSEQUENT YEAR. 3. AT THE TIME OF HEARING, THE AR PRODUCED THE ORDER GIV ING EFFECT TO THE DIRECTION OF THE CIT(A), DATED 08.08.2012, WHEREIN THE AO HAD ALLOWED THE LOSS. 4. SINCE THE DIRECTION GIVEN BY THE CIT(A) HAS BEEN GIVEN EFFECT TO BY THE AO, THE APPEAL BECOMES INFRUCTUOUS. 5. IN THE RESULT, THE APPEAL BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 20/11/2012. SD/- ( RAJENDRA SINGH ) ACCOUTANT MEMBER SD/- ( VIVEK VARMA ) JUDICIAL MEMBER MUMBAI, DATE: 20/11/2012 COPY TO : 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A)- 22 , MUMBAI. 4) THE CIT 10, MUMBAI, 5) THE D.R. C BENCH, MUMBAI. 6) COPY TO GUARD FILE. BY ORDER ASSTT. REGISTRAR I.T.A.T., MUMBAI RASIKA