TaxTMI 
TaxTMI 
2014 (6) TMI 293
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....nces of the case, the Learned Tribunal was justified in law in deleting the disallowance of loss on account of foreign exchange fluctuation as the loss on account of decrease in value of loan given to its sister concern due to foreign exchange fluctuation will not be allowed as business expenditure ; b) Whether on the facts and in the circumstances of the case, the Learned Tribunal was justified in disallowance on account of foreign exchange fluctuation following the judgment in case of M/s. Woodward Governor India (P) Limited., reported in 312 ITR 254 (S.C.) and directing that the Learned Assessing Officer should grant the Assessee the benefit of deduction on account of fluctuation in the rate of exchange; c) Whether on the facts and in ....
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....sessee. Moreover, this is merely a wrong statement of the loan account on the balance-sheet but as per the accounting standard being followed by the assessee company. Since the same is contingent in nature, the same is disallowed and added back in the total income of the assessee. The total disallowance on this account comes to Rs.53,43,048. Aggrieved by the order of the assessing officer the assessee approached the CIT Appeal. The CIT Appeal did not examine the findings of the assessing officer on merits. He on the contrary upheld the views of the assessing officer on the ground that increase or decrease in the value of loans on account of foreign exchange would result in capital appreciation or depreciation of the value of an asset, and ....
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.... actual cost in the year, in which the increase or decrease in the liability arises on account of the fluctuation in the rate of exchange. Applying the same principle, the increase or decrease in the value of the foreign loan would also be taken into account to modify the figure of actual loan in the year in which the increase or decrease in the loan arises on account of fluctuation in the rate of exchange. In these circumstances, we are of the view that respectfully following the principles laid down by the Hon'ble Supreme Court in the case of Woodward Governor India (P) Ltd. referred to supra, the assessee is entitled to the deduction of the foreign exchange loss as claimed by the assessee. The Assessing Officer is directed accordingly to....
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....g out of sale of the shares. The Assessing Officer while making additions made the following findings;- "On going through the complete details of these transactions it is found that the shares of M/s.Fast Project Ltd. was sold to the unrelated parties at the price of Rs.30/- whreas the same was sold to an unrelated parties on the price of Rs.14.98 therefore the assessee issued a show cause notice asking it to substantiate the sale price of share of M/s. Fast Project Ltd. to its related parties M/s. Marley Foods Pvt. Ltd. at the rate of Rs.14.98 and it was also asked to show cause as to why not the rate of Rs.30/- per share which has been taken for the transactions with unrelated parties should also not be taken without the related parties.....
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....rket value of the shares sold as full value of consideration. Accordingly, the addition of Rs.91,81,916/- is directed to be deleted. This ground of appeal is, accordingly, allowed." Aggrieved by this order of CIT the Revenue unsuccessfully preferred an appeal before the learned Tribunal which was dismissed inter alia on the basis of the following reasons :- "In the absence of anything to show that the assessee has received anything more than what is disclosed in respect of the shares sold to its related concerns, no addition can be made to such value for the purpose of computing capital gains. In these circumstances, respectfully following the decisions of the Hon'ble Supreme Court in the case of K.P.Varghese referred to supra as also th....