TaxTMI 
TaxTMI 
2014 (6) TMI 333
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....ggrieved by the decision of Ld CIT(A) in deleting the same. 3. During the course of assessment proceedings, the AO took the view that the unrealized foreign exchange loss claimed by the assessee is neither an accrued loss nor an actual loss. Accordingly he disallowed the claim. However, the Ld CIT(A) allowed the claim with the following observations:- 6.3 I have perused the facts and the position of law in this regard. Out of Rs.20,27,115, disallowed by the AO as unrealized foreign exchange loss, Rs. 4,51,010 was on account of fluctuation in foreign exchange liability on account of Bills payable under Letter of Credit opened by the bank for importing raw materials, for which no forward covers were booked by the assessee and hence, the....
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....te of Balance Sheet, is an item of expenditure allowable u/s 37(1) in the year of accrual. This ground of appeal is, therefore, allowed The revenue is aggrieved by the decision rendered by Ld CIT(A) on this issue. 4. We have heard rival contentions on this issue. A careful perusal of the order passed by Ld CIT(A) on this issue, which is extracted in the earlier paragraph, would show that the first appellate authority has followed the decision rendered by the Special bench of Tribunal in the case of DCIT Vs. Bank of Bahrain & Kuwait, reported in (2010) 5 ITR 301 and also the decision rendered by the Hon'ble Apex Court in the cases of Woodward Governer India Pvt. Ltd., (2009) 312 ITR 254 (SC) and ONGC Vs. CIT, reported in (2010) 322 ITR 18....
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....ld A.R placed reliance on the decision rendered by the co-ordinate bench of Tribunal in the case of ACIT K. Raheja Corporation Pvt Ltd (ITA No.4855/M/07 and ITA No.4823/M/07). 7 On the contrary, the Ld D.R submitted that the disallowance of interest has been made in accordance with Rule 8D and, hence, there is no necessity to interfere with the order of Ld CIT(A) on this issue. The Ld D.R submitted that the Ld CIT(A) has held that the decision rendered by the Co-ordinate bench in the case of Raheja Corporation Pvt Ltd (supra), is not applicable to the issue under consideration. 8. We have heard the rival contentions and carefully perused the record. In the recent decision rendered by Hon'ble Punjab and Haryana High Court in the case o....
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.... income of dividend. However, as per the provisions of sub. sec (2) of sec. 14A of the Act, the AO is required to examine the claim of the assessee in respect of such expenditure in relation to income which does not form part of the total income and if he is not satisfied with the correctness of claim only, he can proceed to determine the amount of expenditure in terms of sec. 14A(2) of the Act. The Hon'ble Punjab & Haryana High Court, in the above cited case, has also held that - Whether, in a given situation, any expenditure was incurred which was to be disallowed, is a question of fact. 9. In the instant case also, the contention of the assessee is that it did not use any of its borrowed funds for making investments. The Ld CIT(A) has....