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The Tax PublishersIncome Tax Appeal No. 106 of 2007 2013 TaxPub(DT) 0698 (Karn-HC) : (2013) 351 ITR 0153 : (2013) 213 TAXMAN 0293INCOME TAX ACT, 1961
--Business expenditureAllowability Foreign exchange fluctuation loss--Assessee claimed deduction by way of loss in its business income due to fluctuation in the rate of exchange on the outstanding dues payable in foreign exchange, which was raised for the purpose of buying stock-in-trade. While assessing officer rejected the same, on the premise that it was notional loss and, therefore, not allowable Commissioner (Appeals) and Tribunal held that assessee could claim deduction on notional basis. Held: The matter was remitted back to assessing officer to examine the claim in the light of fulfillment of the conditions as indicated by the Supreme Court for this purpose and then either admit the claim or reject it, depending upon the assessee satisfying the conditions.
Income Tax Act, 1961 Section 37
In the Karnataka High Court
D. V. Shylendra Kumar & B. Manohar JJ.
CIT & Anr. v. Wipro Finance Ltd.
Income Tax Appeal No. 106 of 2007
7 January, 2013
Appellant by : K. V. Aravind, Advocate
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