2010 (9) TMI 851

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....antial question of law that arises for our consideration in this appeal is:   "Whether the Tribunal was correct in holding that the loan availed of by the assessee in foreign currency has been increased due to fluctuation in the foreign currency and consequently a sum of Rs.3,25,24,941/- has to be allowed as a revenue expenditure despite the loan having not been repaid during the current a....

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....r. However, before the Tribunal, the assessee was successful. Aggrieved by the same, the present appeal is filed by the revenue.   4. The assessment year is 1998-99. The loss of Rs.8,23,81,991/- (Rupees eight crores twenty three lakhs eighty one thousand and nine hundred ninety one only) was shown by the assessee. According to the assessee, a sum of Rs.3,25,24,941/- (Rupees three crores tw....

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....n this case and by virtue of this opinion, recalculation has to be done by following the principles laid down in the ONGC's case (supra).   5. Accordingly, the appeal of the revenue is dismissed and the substantial question is answered in favour of the assessee holding that it is entitled to claim the loss accrued on account of fluctuation in the rate of foreign exchange.   6. So f....