2018 (3) TMI 801

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....been served and undertakes to file affidavit of service on or before 1st March, 2018. 2 This Appeal under Section 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 27th August, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 27th August, 2014 is in respect of Assessment Year 2009-10. 3 Revenue urges the only following reframed questi....

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....rt of readymade garments, imitation jewellery, handicrafts etc., In the course of its business, the Respondent had taken a term loan in Foreign Exchange for purchase of assets but used it for working capital requirements. The Respondent claimed the loss arising on account of foreign exchange fluctuation on the loan utilized for its working capital requirements. The Assessing Officer by an Assessme....

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....loss on account of foreign exchange difference is allowable as a revenue loss. The appeal of the Revenue was dismissed; (iv) We find that both the CIT(A) as well as the Tribunal have on perusal of the record, have come to a conclusion that the loan taken was utilized only for working capital requirements. Therefore, loss on account of foreign exchange variation would be allowable as a trading los....