1984 (8) TMI 6

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....he Income-tax Act of 1961, the following two questions are referred for the opinion of this court: " 1. Whether, on the facts and in the circumstances of the case, the sum of Rs. 10,558 paid by the assessee as exchange difference cannot be allowed as a revenue loss ? 2. If the answer to the first question is in the affirmative, whether, on the facts and in the circumstances of the case, the ....

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....s to be paid through DM currency. It is common knowledge that the French currency, the German currency and the money equivalent of the two currencies are matters of fluctuations every day. The assessee paid Rs. 15,969 more as a result of the fluctuations. The assessee paid the amount in two segments, one of Rs. 10,558 and the other of Rs. 5,411. As to the latter amount, no question arises in this ....

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.... manner: The French company is the supplier. The assessee is the purchaser. The German firm is the creditor and the assessee is the debtor. The payment was made through DM currency which was arranged by the medium of Industrial Credit and Investment Corporation of India Ltd. If the assessee paid Rs. 10,558 to its creditor, in which case it is obvious that the payment was made by the debtor to t....

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....cifically found that the claimed amount was paid to the supplier, i.e., the French company, for supply of plant and machinery. This statement of fact was not disputed, but it is disputed in this court. No question, however, was raised to say that it was incorrectly set out before the Tribunal. Learned counsel for the assessee asserted that it is an incorrect statement of fact introduced in the ....