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2016 (8) TMI 1468 - AT - Income TaxRectification u/s 154 - AO enhanced book profit computed u/s. 115JB by making addition on account of amortised amount of exchange differences arising out of foreign currency borrowings - CIT(A) upholding the claim of the assessee that the amortised amount of exchange differences arising out of foreign currency borrowings are not contingent liability and should not form part of computation of “Book Profit” for the purposes of S.115JB - HELD THAT:- CIT(A) reached to the conclusion that the said liability is not contingent. As per the CIT(A), a contingent liability depend purely on happening and not happening of the event, whereas if an event has already been taken place, which in the present case, is of entering into the contract and undertaking of obligation to meet the liability, and only consequential effect of the same is to be determined, then, it cannot be said that it is in the nature of contingent liability. After applying the proposition of law laid down by Hon’ble Supreme Court in the case of Woodward Governor India [2009 (4) TMI 4 - SUPREME COURT] and Bharat Earth Movers [2000 (8) TMI 4 - SUPREME COURT] , CIT(A) recorded a finding to the effect that it was not a contingent liability. Accordingly we do not find any reason to interfere in the order of the CIT(A), which is a well reasoned order. Appeal of the Revenue is dismissed.
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