TMI Blog2014 (9) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... uch actual payment - the deduction of foreign exchange fluctuation can be claimed in the computation of the assessee's business profits pending such payment – Decided in favour of assessee. Managing Director's remuneration disallowed – Held that:- Following the decision in Mahindra And Mahindra Limited Versus Commissioner Of Income-Tax [2005 (8) TMI 87 - BOMBAY High Court] - the claim for allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed below: (i) Was the ITAT justified in law in holding that the additional liability on account of exchange rate fluctuation amounting to ₹ 45,32,050/- was allowable as a deduction in the computation of the Applicant's business profits, only when the actual payment was made and, till then, it was contingent in nature, after, in particular, having held that such fluctuation was on rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be claimed only upon actual payment and till such time the same is contingent in nature. This issue has been decided in the case of Commissioner of Income Tax V/s. Woodward Governor India P. Ltd. reported in (2009) 312 ITR 254 (SC), wherein the Hon'ble Supreme Court has held that such deduction need not be claimed upon actual payment and the same can be claimed even pending such actual payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;ble Supreme Court in the matter pertaining to Civil Appeal No.2272/80 on behalf of the Government of India that vide its letter dated 29th July, 1994 the government communicated its approval for such allowance pursuant to which statement the question was answered in the negative and in favour of the assessee. 4. In the circumstances, question Nos.2 and 3 in the present reference are answered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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