TMI Blog1987 (2) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... referred under section 256(1) of the Income-tax Act, 1961 (Act 43 of 1961), for short "the Act": "(i) Whether, on the facts and in the circumstances of the case, the loss of Rs. 10,485 incurred by the assessee owing to exchange fluctuations in connection with the purchase of machinery from abroad is allowable in computing the assessee's income ? (ii) Whether, on the facts and in the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it was confirmed. On further second appeal, it was confirmed by the Tribunal. Thus, at the instance of the assessee, the reference has been made. Equally, the assessee also claimed deduction of surtax payable under the Companies (Profits) Surtax Act, 1964, and it was disallowed. With regard to the second question, it is already covered by a decision of this court rendered in R. C. No. 133 of 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant portion of section 43A(1) of the Act postulates thus "Notwithstanding anything contained in any other provision of this Act, where an assessee has acquired any asset from a country outside India for the purposes of his business ... in consequence of a change in the rate of exchange at any time after the acquisition of such asset, there is an increase or reduction in the liability of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y asset from country outside India for the purpose of the business and any amount paid either in whole or in part borrowed by an assessee from any person directly or indirectly in any foreign currency specifically for the purpose of acquiring assets shall be treated as capital in nature. The fluctuation is one of the factors to be taken into account to determine the value of the capital asset and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue expenditure and allowance cannot be granted The reference is accordingly answered against the assessee and in favour of the Revenue. There shall be no order as to costs. On question No. (ii), in similar circumstances in T. T. Pvt. Ltd. v. CIT and Amco Batteries Ltd. v. CIT, the Supreme Court granted special leave in S. L. P, (Civil) Nos. 2744-45 of 1984 and 2739 of 1984 to the assessee aga ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
