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2014 (6) TMI 293 - CALCUTTA HIGH COURTDisallowance of loss of foreign exchange fluctuation – Held that:- The Tribunal was rightly of the view that the increase or decrease in the value of the foreign loan would also be taken into account to modify the figure of actual loan in the year in which the increase or decrease in the loan arises on account of fluctuation in the rate of exchange – the assessee is entitled to the deduction of the foreign exchange loss as claimed by the assessee - the assessee has offered the income arising out of the money lent as its business profit - The case of the assessee is that the money was advanced to a sister concern which has in fact been supplying 97% of its raw material - It was as such an advance made for the purpose of running the business more profitably – the finding of the learned Tribunal was not challenged – Relying upon CIT Versus M/s Woodward Governor India P. Ltd. & M/s Honda Siel Power Products Ltd. [2009 (4) TMI 4 - SUPREME COURT] - Closing stock is also an asset – there was no merit in the contentions of Revenue – Decided against Revenue. Value of consideration of sale of shares – Held that:- Tribunal was of the view that in the absence of anything to show that the assessee has received anything more than what is disclosed in respect of the shares sold to its related concerns, no addition can be made to such value for the purpose of computing capital gains – Following CIT Versus George Henderson & Co. Ltd. [1967 (4) TMI 18 - SUPREME Court] - when the legislature wanted to make a departure a specific provision was introduced - Reference in this regard can be made to Section 50C - the AO was wrong in taking the view that the capital gain has to be assessed not on the basis of the consideration actually received but on the basis of the consideration receivable based on market rate – Decided against Revenue.
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