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2014 (5) TMI 198 - HC - Income TaxProvision in P&L account – Whether the liability has been crystilised or loss has accrued in the current year or not – Held that:- The assessee company is engaged in the purchase and sale of Government securities, public sector undertaking bonds, commercial papers and other money market instruments – the Tribunal was rightly was of the view that the guidelines issued by RBI in repo and reverse repo transaction requires uniform accounting of repo/reverse repo transactions, and that the company in question has followed those guidelines and accordingly debited the sum as a loss - It has been actually incurred, and finding that it has been actually incurred that the Department's stand in this case has been rejected - Beyond that the Tribunal or CIT(A) have not rendered any findings and which would have far-reaching consequences - All such findings and conclusions must be seen in the backdrop of peculiar facts and circumstances of the case of the assesee - No general principle or rule has been laid down – Decided against Revenue.
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