TaxTMI 
TaxTMI 
2007 (3) TMI 204
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.... arises out of the order dated August 28, 2002, passed by the Income-tax Appellate Tribunal Bench "C", Delhi, in I. T. A. No. 2592/Del./97 relating to the assessment year 1993-94; I. T. A. No. 92/2003 arises out of the order dated October 31, 2002, passed by the Income-tax Appellate Tribunal Bench "E" Delhi in I. T. A. No. 355/Del./98 relating to the assessment year 1994-95 I. T. A. No. 123/2003 arises out of the order dated August 1, 2002, passed by the Income-tax Appellate Tribunal Special Bench, Delhi, in I. T. A. No. 2472/Del./96 relating to the assessment year 1991-92; I. T. A. No. 2/2004 arises out of the order dated September 26, 2003, passed by the Income-tax Appellate Tribunal Bench "A", New Delhi, in I. T. A. No. 3811/Del./96 rela....
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....on under the Income-tax Act as repayments of these borrowings fell after the accounting year under consideration and, therefore, liability for such losses did not arise in the accounting year under consideration 3. Whether in view of section 43A of the Income-tax Act, the Tribunal was right in taking into consideration foreign exchange losses suffered by the assessee on capital account on accrual basis for the purposes of determining written down value of the assets ? 4. Whether the Tribunal was right in holding that the assessee was entitled to adjust the actual cost of assets by foreign exchange losses arising on notional basis ?" 3. The brief facts of the case are that the Oil and Natural Gas Corporation Ltd. filed its return fo....
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....anation.— For the removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure." 7. A perusal of the record as well as the aforesaid provision clearly indicates that claim under section 37 of the Act will be allowable only in respect of liability which has become enforceable during the relevant assessment year and actually in respect of payment made in that year but not in hallow. The assessee was allowed the illegal relevant claims which were neither actually made nor were the same enforce....
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....r as the substantial questions of law formulated at serial Nos. 2, 3 and 4 are concerned, we hold that the foreign exchange borrowings made for general purposes which were partly used in the revenue account and partly in the capital account and repayment of which fell beyond the accounting year under consideration, the appellant's claim for loss and increased liability on revaluation of such loan made at the prevailing exchange rates at the end of the accounting year under consideration, that its claim for foreign exchange loss arising on account of revaluation of such foreign exchange borrowings taken for general purposes but used in the revenue account is not allowable for the same reasons as given by us above in not allowing the responde....
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....care of the foreign exchange variations rate with respect to capital assets. There is no such provision with respect to revenue component on account of these foreign exchange variations, if any at all. 14. Further, it is clear from the material on record, that all the carry forward foreign exchange losses, subject to sufficient proof to the satisfaction of the assessing authority, was not filed by the respondent at any stage in any of the assessment years. There has been no reparation by the assessee to the Government of India or any actual repayment was made to any of its alleged foreign creditors in the assessment year in question. 15. Income tax being annual charge it has to be quantified and determined according to rules, whether ....
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.... substantial questions of law formulated at serial Nos. 2, 3 and 4 are also answered in the negative. 18. Learned counsel for the respondent has submitted that the COD vide its minutes of meeting dated March 2, 2007, refused to grant permission to the Revenue Department to pursue the appellants in this court on the ground that the transactions of revenue were neutral and did not involve any substantial question of law which was required to be adjudicated by this court. It has been submitted that the said decision of the COD being final and cannot be called into question in any forum, the present appeals are not maintainable and are liable to be dismissed. 19. We are not concerned with regard to this aspect of the matter. It is not mat....