TaxTMI 
TaxTMI 
2016 (5) TMI 616
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....and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the Assessing Officer to delete the addition made on account of foreign exchange loss of Rs. 64,86,044/- by relying on the decision of Hon'ble Supreme Court in the case of Woodword Governor India Ltd., ignoring the fact the decision was rendered in the matter of valuation of closing stock and in the assessee's case the same was not an item of closing stock and was not allowable as trading loss on account of revenue. 2. The C.I.T.(A) ought to have noticed that the advances received from Sun Shine Jewellery Trading FTZ Singapore and Sun Rising Jewellery Singapore were only used for giving interest free advances for the assessee's sister concerns and no....
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....r of the AO and the additions made by the AO, the assessee filed an appeal before the CIT(A) and the CIT(A) dismissed the appeal of the assessee vide order dated 28.09.2013. Thereafter appeal before ITAT was filed. ITAT vide order in ITA No. 6540/Mum/2012 dated 08.01.2014 set aside the matter back to CIT(A) for adjudicating the issue again. The CIT(A) vide order dated 12.03.2014 allowed the appeal. 3.1 Aggrieved by the order of the CIT(A), the revenue filed the present appeal before us on the grounds mentioned herein above. Ground Nos. 1-4: 4. All the grounds raised by the assessee are inter-connected and inter-related therefore we thought it fit to dispose off the same by the consolidated order. 4.1 Ld. DR relied upon the order....
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....appellate proceedings, the Authorized Representative of the appellant has made the following submissions:- "This has with reference to the order passed by the Hon. Tribunal "F" Bench Mumbai dated 8.1.2014 in the matter of above referred assessee. The Hon'ble Tribunal has set aside the ground for fresh adjudication to your honour with a direction to analyse if loss on account of foreign exchange fluctuation is relatable to revenue account or capital account. If the loss is on account of revenue then appellant is entitled to the relief in view of the judgement of the Hon.Supreme Court in CIT vs. Woodword India Pvt. Ltd. 312 ITR 254. In this connection we are enclosing following documents:- a) Copy of the order o....
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.... 1,38,85,900/- towards loss on account of fluctuation of foreign exchange. Accordingly this ground of appeal is allowed." 6. In addition to the above, we have also analysed the initial orders passed by the CIT(A) dated 28.09.2012 and after considering the facts of the case and considering the judgements passed by the CIT(A), we find that the Hon'ble ITAT while dealing with the initial order passed by CIT(A) had observed that the issue in question was whether losses arising out of depreciation of foreign currency is utilized or intended to be utilized for the business which form part of the capital and directed the CIT(A) to analyse afresh if the loss on account of foreign exchange fluctuations which is relatable to the revenue account or....