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2011 (5) TMI 429 - HC - Income TaxWhether on the facts and in the circumstances of the case, the Tribunal is right in holding that surplus of Rs 58,32,100/- is not taxable in the assessee’s total income - Mr. Gupta submitted that both CIT (A) and the Tribunal had set aside the addition of surplus sum on three grounds: First, that the principal sum of £ 18,21,721/- was kept on capital account i.e., was a capital asset. Second, the money lay unutilized in a fixed deposit and hence, was not used for business purposes. Third, that profit or loss would arise on account of appreciation or depreciation in the value of foreign currency only when, there was actual conversion of foreign currency. Since no such conversion took place, the surplus crystallized was a notional sum, which could not be brought to tax in the assessment year in issue - thus obvious that the issue of taxability did not arise in the year in issue. However, whether it arose in the subsequent assessment year is an aspect which the Tribunal will have to examine and if necessary issue appropriate directions in that regard - The Tribunal shall in this regard pass an appropriate orders including, if it is felt necessary, remand the matter to the Assessing Officer.
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