DCIT 15 (3) ( 1 ), MUMBAI V. TRIMBLE SOLUTIONS I. P. LTD ( TEKLA INDIA P.LTD ) , NAVI MUMBAI

MA 270/MUM/2020

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8378 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-11-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2009-2010
• Appeal Filed On: 27-10-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.K. BAGACHI
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I” MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI S. RIFAUR RAHMAN (ACCOUNTANT MEMBER) MA No. 270/MUM/2020 (ITA No. 3079/MUM/2013) Assessment Year: 2009-10 The Deputy Commissioner of Income Tax-15(3)(1), Room No. 451, 1 st floor, Aayakar Bhavan, M.K. Road, Mumbai-400020. Vs. Trimble Solutions India Private Limited, Unit Nos. 112-115, Building No. 2, Millenium Business Park, Sector-1, Mahape, Navi Mumbai-400 710. PAN No. AACCT 8089 R AppellantRespondent Revenue by:Mr. B.K. Bagachi, DR Assessee by:Mr. Divesh Chawla, AR D a t e o f H e a r i n g:12/11/2021 D a t e o f p r o n o u n c e m e n t:16/11/2021 ORDER PER S. RIFAUR RAHMAN, A.M. By means of this Miscellaneous Application (MA), the applicant seeks rectification of the order dated 06.09.2019 passed by the ITAT ‘I’ Bench Mumbai (ITA No. 3079/Mum/2013) for the assessment year (AY) 2009-10. 2.In the MA filed by the Revenue has made the following prayer to amendment/rectification to the order passed by the ITAT vide order ITA No. 3079/M/2013. Which is reproduced below: “3.1The Hon'ble ITAT has noted that "the assessee is following the mercantile system of accounting and as on 31the assessee is following the mercantile system of accounting and as on 31.03.2009 the value of trade receivables and payables was restated in the financial statements in MA NO. 270/M/2020 Trimble Solution India Pvt. Ltd. 2 accordance with the Accounting Standard which resulted in marked to market loss of Rs. 69,36,000/-. The said loss was claimed as revenue loss by way of debit in the P&L Account. The Assessing Officer as well as the CIT(A) disallowed the claim on the ground that it was a contingent liability. In this context, the Ld. Representative for the assessee relied upon the judgment of the Hon"ble Supreme Court in the case of CIT Vs. Woodward Governor India Private Limited, 312 ITR 254 (SC) to contend that loss was allowable as an expenditure in computing the total income. Our attention has also been drawn to the judgement of the Hon'ble Bombay High Court in the case of Vassantram Mehta & Co. Vs. JCIT, 63 Taxmann.Com, 102(Bom), wherein it has been held that the loss incurred on account of fluctuation in foreign exchange rate was allowable on the date of making of balance sheet and its allowability could not be postponed to a future date. In view of the aforesaid precedents, we find that the claim of the assessee is justified and it is ordered to be allowed. assessee succeeds. 4.The Hon'ble ITAT has allowed the assessee's appeal referring the reliance of the assessee upon the judgement of Hon'ble Supreme Court in the case of M/s Woodward Governor India Ltd and placing reliance upon Hon'ble Bombay High Court in the case of Vassantram Mehta & Co Vs. JCIT, wherein its has been held that the loss incurred on account of fluctuation in foreign exchange rate was allowable on the date of making of balance sheet and its allowability could not be postponed to a future date. The assessment year involved in the case of M/s Woodward " Governor India Ltd is A.Y 1998-99 and in the case of Vassantram Mehta & Co is A.Y 2001- 02. However, new section 43A of the Income- tax Act, after amendment by Finance Act, 2002 we.f 01.04.2003 has not been considered by the Hon"ble ITAT. 5.In view of the above, it is humbly prayed that the Hon'ble ITAT be pleased to recall its order dated 06.09.2019 in ITA No. 3079/Mum/2013 for Assessment Year 2009-10. for rectification of the manifest and apparent error of facts therein and the conclusion based thereon and modify its order accordingly.” 3.After considering the submissions of both the parties we observed that Revenue seeks to rectify the orders passed by the Co-ordinate Bench. The issue involving debatable issues and we also observed that the issue involved is relating to section 43A of the Act applicable in the transactions where assessee acquires any assets from a country outside India and this provision deals with recording of exchange losses incurred in forex dealing. There is no discussion on revenue transactions. MA NO. 270/M/2020 Trimble Solution India Pvt. Ltd. 3 4.Since the issue involved is debatable. Therefore, the MA filed by the Revenue is accordingly dismissed not fit for rectification u/s 254(2) of the Act. 5.In the result, the MA filed by the Revenue is dismissed. Order pronounced in the open Court on 16/11/2021. Sd/-Sd/- (SAKTIJIT DEY)(S. RIFAUR RAHMAN) JUDICIAL MEMBERACCOUNTANT MEMBER Mumbai; Dated: 16/11/2021 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to : 1.The Appellant 2.The Respondent. 3.The CIT(A)- 4.CIT 5.DR, ITAT, Mumbai 6.Guard file. BY ORDER, //True Copy// (Dy./Assistant Registrar) ITAT, Mumbai