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2013 (4) TMI 62 - AT - Income TaxJurisdiction power u/s 263 by CIT(A) - AO has not disallowed u/s 43 B a sum pertained to earlier previous year towards loan from GIIC and claimed as deduction u/s 43 B - Held that:- A.O. has issued the show cause notice on this issue and the assessee filed reply & A.O. has not made any addition after considering the reply. Therefore, the CIT order u/s 263 on this issue is tantamount to change of opinion which is not permitted under the law as held by the various high courts on this issue - in favour of assessee. Foreign currency loan, liability and assets (other than fixed assets) were restated at the rate of prevailing at the year end and exchange rate difference was charged to the profit and loss account which was not according to ratio laid down in the case of Indian Overseas Bank Ltd.(1984 (4) TMI 35 - MADRAS HIGH COURT) as notional liability is not permissible - Held that:- As this fluctuation of exchange loss is allowable being a revenue expenditure relied in the case of Woodward Governor Pvt. Ltd. vs. CIT (2009 (4) TMI 4 - SUPREME COURT) and details were also given before the AO, therefore, there is no revenue loss. As that the exchange rate pertained to various purchases as claimed by the appellant are revenue in nature. Thus no reason to uphold the order of CIT - in favour of assessee.
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