2025 (6) TMI 2148

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....: Mr. Keerthi Narayanan, JCIT ORDER PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/Addl./JCIT(A)-10, (hereinafter referred to as "the Ld.CIT(A)"), Mumbai, dated 04.11.2024 for the Assessment Year (hereinafter referred to as "AY") 2011-12. 2. The sole issue is against the action of the Ld.CIT(A) co....

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....for the purpose of acquisition of capital asset and correspondingly the loan is in the capital field and the loss arising on account of restatement of the liability, which is in the capital field to be considered as capital nature and it is a capital loss cannot be considered as deduction while computing the income of assessee as a business expenditure. 4. Aggrieved by the aforesaid action of t....

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....Y's i.e. AY 2010-11, 2011-12 & 2012-13. For the AY 2011-12, the Appellant has claimed forex loss of Rs.7,02,000/- on restatement of ECB and the same was debited in the Profit & Loss account. Later, the case of assessee for AY 2011-12 was reopened and the AO concluded that since the CIT(A) and ITAT held that the Forex Loss on restatement is capital in nature, deduction was not allowable. On appeal,....

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....tio laid down by this Tribunal in the assessee's own case (supra). In this regard, we note that on this issue in the assessee's appeal for AY 2012-13, this Tribunal has held as under: 7. In the present case, it is noted that the loan has been given by the parent company for the purpose of acquisition of capital asset and correspondingly the loan is in the capital field and the loss arisin....