Foreign exchange fluctuation gain turned on facts, with no substantial question of law arising on business nexus.

Foreign exchange fluctuation gain was held to raise no substantial question of law where the dispute depended on the Tribunal's factual finding that the gain was not connected with the assessee's business activity. The Gujarat HC treated the matter as identical to an earlier connected tax appeal arising from the same common Tribunal order and noted that the issue had already been resolved on appreciation of facts and material. On that basis, the court answered the substantial question of law against the Revenue and in favour of the assessee.

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Issues: Whether the deletion of the addition made on account of gain on foreign exchange fluctuation gave rise to any substantial question of law.

Analysis: The dispute was identical to an earlier connected tax appeal arising from the same common order of the Tribunal. In the connected matter, the factual finding that the assessee's foreign exchange fluctuation gain was not in connection with its business activity had been affirmed, and it was held that the issue turned on appreciation of facts and material.

Conclusion: The substantial question of law was answered against the Revenue and in favour of the assessee.

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