2020 (1) TMI 1146

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.... Soparkar(6851) for the Opponent(s) No. 1 ORAL ORDER (PER : MR. BHARGAV D. KARIA) 1. This Tax Appeal is filed under Section 260A of the Income Tax Act, 1961 [for short, 'the Act, 1961') at the instance of the Revenue and is directed against the order dated 26th June 2019 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C' in ITA No.1798/Ahd/2017 for A.Y. 20131....

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.... made by the assessee firstly on the ground that deduction for the provision relating to the import of goods on account of exchange fluctuation is available only on the actual payment as per the provisions of Section 43A of Act, 1961, and secondly, such provision on account of currency fluctuation is representing the unascertained liabilities which is not allowable as deduction under Section 37(1)....

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....ity, and the fixed assets were of negligible value. Therefore, the provisions of section 43A of the Act cannot be applied in the present facts and circumstances as it deals with the capital account transaction. Accordingly, we hold that the AO erred in applying the provisions of section 43A of the Act. 5.1 The next controversy arises whether the impugned transaction is presenting....

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.... 37(1) of the 1961 Act." From the above, it is clear that the trading liability arising on account of currency fluctuation is ascertained liability, and therefore, it is eligible for deduction. 5.3 We also note that the assessee has been adjusting the books of accounts consistently on account of currency fluctuation, which has been accepted by the Revenue in the earlier years. Therefore, ....