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2018 (11) TMI 866 - AT - Income TaxRevision u/s 263 - allowability of the claim of business loss on currency swap - allowable revenue expenditure - expenditure i.e. foreign exchange fluctuation related to capital assets - Held that:- Admittedly the loss on currency swap is an event subsequent to the acquisition and put to use of the asset for business and therefore, following the ratio of the Supreme Court decision in Tata Iron Steel Co. Ltd [1997 (12) TMI 5 - SUPREME COURT], which has been relied by coordinate bench of Pune Tribunal in Cooper Corporation (P) Ltd [2016 (5) TMI 809 - ITAT PUNE], such loss cannot alter the cost of asset and is rather allowable as revenue expenditure. Thus, the ratio of the judgment of Hon’ble Sutlej Cotton Mills Ltd [1978 (9) TMI 1 - SUPREME COURT] is not applicable in the instant case and the assessment order cannot be erroneous in law. Therefore, clause (d) of Explanation 2 of section 263 is not fulfilled. The loss claimed by assessee on account of fluctuation loss is revenue loss and the assessee is entitled for its deduction. Therefore, the order passed by assessing officer is not erroneous. Considering the fact that the twin condition as enunciated by Hon’ble Apex Court in case of Malabar industrial companies Ltd [2000 (2) TMI 10 - SUPREME COURT] are not fulfilled, therefore, the order passed by assessing officer cannot be subject matter of revision. Therefore, the revision order passed by learned PCIT is not sustainable - Decided in favour of assessee.
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