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2020 (1) TMI 1146 - HC - Income TaxDisallowance of provision for import exchange difference incurred on unexpired contracts at the end of accounting period - AO disallowed the claim of provision on the ground that deduction for the provision relating to the import of goods on account of exchange fluctuation is available only on the actual payment as per the provisions of Section 43A and secondly, such provision on account of currency fluctuation is representing the unascertained liabilities which is not allowable as deduction under Section 37(1) - ITAT deleted the addition - HELD THAT:- Tribunal concurring with the order passed by the CIT(Appeals) held that there was no long term loan liability, and the fixed assets were of negligible value, and therefore, the provisions of Section 43A of the Act cannot be applied in the present facts and circumstances as it deals with the capital account transaction. The Tribunal following the decision of the Supreme Court in CIT vs. Woodward Governor India Private Ltd [2009 (4) TMI 4 - SUPREME COURT] held that the trading liability arising on account of currency fluctuation is ascertained liability, and therefore, it is eligible for deduction. In view of the findings of fact arrived at by both the authorities, there is no infirmity in the impugned order passed by the Tribunal which is based upon the facts emerging from the record as well as the application of the decision of the Supreme Court of India in the aforesaid case. No question of law
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