TaxTMI 
TaxTMI 
2014 (1) TMI 1741
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....appeal filed by the assessee on 30.10.2012 is against the order of the CIT (A)-34, Mumbai dated 28.9.2012 for the assessment year 2009-2010. 2. In this appeal, assessee raised the only effective ground which reads as under: "1. The CIT (A) erred in confirming the addition of Rs. 1,38,85,900/- towards loss on account of fluctuation in foreign exchange." 3. Briefly stated relevant facts of the ....
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....s were made in the subsequent financial year with invoices being raised in the subsequent year. The assessee claimed the difference between the rate at which advance was received and the rate prevailing as on 31.3.2009 as „exchange loss‟. Since, the transaction was not completed, the AO treated the „exchange loss‟ as „notional and contingent one‟ and did not all....
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....d the present appeal by raising the above mentioned ground. 5. During the proceedings before us, Shri Ramakrishna R. Lingsur, Ld Counsel for the assessee brought our notice to the divergent findings of the CIT (A) on the capital or revenue nature of the loss in question. It is the argument of the ld Counsel that the loss relates to the trading of raw material purchases. This aspect was wrongly co....
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....rising out of depreciation of foreign currency is utilized or intended to be utilized for the business which form part of capital. CIT (A) shall analyse afresh if the loss on account of foreign exchange fluctuations which is relatable to the revenue account or capital account. If the loss is relatable to the „revenue account‟, assessee should be entitled to the relief in view of the ju....