TaxTMI 
TaxTMI 
2015 (6) TMI 102
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....sion of the appeal:- "1. Whether on the facts and in the circumstances of the case the learned Tribunal has erred by allowing deduction under Section 80IA to the extent of Rs. 44,71,14,992/- when the fundamental requirements to quality for claim of deduction under Section 80IA is deficient in this case as the power generation unit is only the extension of existing business of the assessee and there was no business activity on the part of the undertaking (power generation) because the product (power) being generated by the plant was transferred to its own industrial units and was not sold at the market rate to the assessee?" 2. Whether on the facts and in the circumstances of the case the learned Tribunal has erred in deleting the addi....
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....n no.2 appearing from the submissions advanced before the CIT (Appeals) on behalf of the assessee are as follows:- "There have been no provisions made for forex fluctuations. The entire amount of forex fluctuation of Rs. 49,62,133/- was on account of actual expenditure on account of cancellation/booking of foreign exchange covers, during the year. Extract of the assessment submission enclosed - Annexure 32, File No.1, Page Nos.307. This was certified by the auditors in the Tax Audit Report. Therefore, there is absolutely no income tax issue since this has not been claimed as revenue expenditure but has actually been capitalized in accordance with section 43A and only depreciation has been claimed" It would, therefore, appear from t....
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.... "The appellant company during the course of appellate proceedings has contended that the claim is off revenue nature and was allowable u/s.28/37 (1) of the Income Tax Act 1961. The appellant has strongly relied upon the decision of the Hon'ble I.T.A.T. for the assessment year 1991-92 in the appellant's own case wherein the Ld. ITAT relying upon the judgement of the Hon'ble Supreme Court in the case of CIT vs. Mysore Sugar Co. Ltd. (46 ITR 649) held that the write off of trade advances were allowable deduction u/s.28 of the Income Tax Act 1961 since such expenses were incurred in the normal course of business. The details of amount written off have been examined and it is observed that all the advances (now) written off by the....
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.... which must be made to arrive at the true profits and gains. To find out whether an expenditure is on the capital account or on revenue, one must consider the expenditure in relation to the business. Since all payments reduce capital in the ultimate analysis, one is apt to consider a loss as amounting to a loss of capital. But this is not true of all losses, because losses in the running of the business cannot be said to be of capital. The questions to consider in this connection are: for what was the money laid out? Was it to acquire an asset of an enduring nature for the benefit of the business, or was it an outgoing in the doing of the business? If money be lost in the first circumstance, it is a loss of capital, but if lost in the se....