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2017 (2) TMI 646 - AT - Income TaxAddition made on share application money u/s.68 - Held that:- Respectfully following the order of the Tribunal in assessee’s own case on the very same ground, we do not find any infirmity in the order of CIT(A) for deleting the addition made u/s.68 of the IT Act as the identity and creditworthiness of the creditor and genuineness of the transaction stood satisfactorily explained. In the absence of any credible material with the Revenue to disprove the findings of the CIT(A), we hereby affirm the same. TDS u/s 195 - Disallowance made u/s.40a(ia) - whether payments made to the overseas entities will be liable for withholding tax - Held that:- AO was satisfied that these are pure reimbursements and therefore section 195 read with section 40(a)(i) of the Act does not apply and accordingly deleted the entire disallowance. In view of the above, Departments' ground cannot survive since the Learned AO has already verified the details and has accepted that these are pure reimbursement, not attracting provisions of section 195 of the Act. Accordingly, we dismiss the ground raised by the Revenue. Disallowance on account of loss of stock - Held that:- Tribunal in assessee’s own case for the assessment year 2008-09 wherein assessee’s claim for deduction u/s.36(1)(vii) r.w.s. 36 was allowed in favour of the assessee as held that the conditions laid down in section 36(1)(vii) r.w.s. 36(2) of the Act have been complied with. - Decided against revenue Disallowance on account of foreign exchange fluctuation loss - Held that:- This issue was discussed in great detail in the recent landmark ruling of Supreme Court in the case of ClT vs Woodward Governor India P. Ltd (2009 (4) TMI 4 - SUPREME COURT ) wherein observed where profit or loss arises to an assessee on account of appreciation or depreciation in the value of foreign currency held by it, on conversion into another currency, such profit or loss would ordinarily be a trading profit or loss if the foreign currency is held by the assessee on revenue account or as a trading asset or as port of circulating capital embarked in the business. But, if on the other hand, the foreign currency is held as a capital asset or as fixed capital, such profit or loss Thus would be of capital nature. Thus in the interest of justice, we restore this ground back to the CIT(A) for deciding in terms of decision above.
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