Held\u00a0 that the Assessing Officer had made disallowance of the exchange fluctuation under section\u00a037\u00a0only for the reason that external commercial borrowing loans were utilised for the purpose of acquiring capital asset, which has enduring benefit. However, the Commissioner (Appeals) had made the disallowance by relying on section\u00a043A. On appeal the Tribunal held that the disallowances under section\u00a037\u00a0and under section\u00a043A\u00a0operate in different spheres. Section\u00a043A\u00a0is a deeming provision for adding or deducting the fluctuation loss or profit from the cost of the asset whereas disallowance under section\u00a037\u00a0is for the reason that capital expenditure was specifically disallowed. There was merely reinstatement of losses per Accounting Standards without actual payment or remittance so as to invoke section\u00a043A. Except for the assessment year in question, the reinstatement of income or loss from fluctuation of currency had been accepted in terms of the accounting done by the assessee. Therefore, the additional grounds were to be admitted. Addition is deleted. (AY.2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 43A : Rate of exchange-Foreign currency-Business expenditure-Capital or revenue-External commercial borrowing loans-Loss on reinstatement of external commercial borrowing-Mere reinstatement of losses per Accounting Standards without actual payment or remittance-Addition cannot be made-Additional ground is admitted. [S.37(1), 254(1)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-51956","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dw0","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=51956"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51956\/revisions"}],"predecessor-version":[{"id":55506,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51956\/revisions\/55506"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}