TaxTMI 
TaxTMI 
2012 (7) TMI 1178
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....ICE N.V. ANJARIA) 1. The present appeal by the Revenue is directed against the order dated 30th September, 2011 of the Income Tax Appellate Tribunal, Ahmedabad Bench 'C' in I.T.A. No. 2749 of 2009. The appellant has raised the following question proposing it to be substantial question of law. "Whether the Appellate Tribunal has substantially erred in deleting the addition of Rs. 4,21,3....
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....income. The explanation of the assessee was that the foreign exchange gain was kept with the assets and linked with process of setting up of assets and was adjusted from the cost of such assets. Therefore, it was to be regarded as capital account and not required to be treated as revenue receipt. The Assessing Officer however, did not accept the explanation and made addition, on account of gain on....
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....therefore, the gain on foreign exchange fluctuation could not be connected with the business activity. 4.2 The Tribunal observed as under :- "It is not relevant whether the assessee has commenced the business or not. The relevant fact would be whether the contract in the foreign exchange is relatable to the trading transaction or in relation to the capital assets. In fact, if the assessee has n....
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....s of capital nature or a revenue receipt would depend upon where the transaction is relatable to a trading transaction or the some was capital transaction. 5.1 On the facts of the present case, the CIT(A) recorded a finding that earning of the assessee from foreign exchange fluctuations was not in connection with its business activity. The finding was in the realm of appreciation of facts and mat....