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2014 (12) TMI 981 - HC - Income TaxGround not raised before Tribunal - Disallowance on interest u/s 36(1)(iii) deleted - diversion of interest bearing funds to interest free advances or not – Held that:- No such ground was taken or argument was advanced before the Tribunal - the AO, who is the author of the assessment order, dated 29th March, 1994 represented the Department before the FAA and it is not possible to accept that attention of FAA was not drawn to this factual discrepancy – thus, as such no substantial question of arises for consideration – Decided against revenue. Receipt by way of gain on cancellation of foreign exchange contracts - revenue v/s capital - Held that:- Following the decision in As decided in The DY. CIT. Versus Gujarat Narmada Valley Fertilisers Co. Ltd. [2013 (5) TMI 760 - GUJARAT HIGH COURT] wherein the decision in DCIT(Assessment) vs. Garden Silk Mills Ltd. [2009 (2) TMI 95 - GUJARAT HIGH COURT] relied upon wherein it was held that the surplus received on cancellation of forward foreign exchange contract was a capital receipt not liable to tax and that it did not fall under section 28(iv) - Thus the Tribunal was right in holding that the receipt by way of gain on cancellation of foreign exchange contracts is a capital receipt not liable to tax and was accordingly justified in directing the AO to make necessary adjustment to the cost of the acquisition/WDV of the plant and machinery to which the receipt pertains and to make consequential adjustment to the depreciation granted – Decided against revenue.
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