2022 (9) TMI 1539

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....owing substantial questions: "1. Whether in the facts and circumstances of the case, the Tribunal is right in law in setting aside the disallowance of Rs. 29,83,65,068/- being foreign exchange gain by holding that the gain made on account of restatement of external commercial borrowings is on capital account and liable to tax even when the assessee had failed to substantiate its claim by producing proof/evidences and details in support of such claim? 2. Whether in the facts and circumstances of the case, the Tribunal is right in law in holding that assessee is entitled for set off of brought forward Book Loss of Rs. 36,33,40,000/- in the computation of income under section 115JB of the Act by relying on decision in case of Amline Textil....

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.... that the assessee's business had commenced in the Financial Year 2008-09. The consolidated loss is claimed in the relevant Assessment Year 2010-11 and the same is not permissible. The CBDT circular refers to the relevant year and not the previous year. Therefore, the finding recorded by the ITAT is not sustainable and the authority in Amline Textiles (P) Ltd. vs. Income Tax Officer (2009) 27 SOT 0152 is not applicable to the facts of the case. 8. In reply, Shri Suryanarayana submitted that clause 2(iii) Explanation 1(i) of Section 115JB of the Act is unambiguous and includes the brought forward or unabsorbed depreciation whichever is less as per the books of accounts to be set off. 9. We have carefully considered the rival contentions an....