TMI Blog2009 (11) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Assessing Officer had compared the price at which the goods were imported with the price of the goods in the local market in subsequent years. The Tribunal confirmed this. Held that - the entire expenditure was to be treated as revenue expenditure or 25 percent thereof could be capitalized, as held by the Tribunal. In either event, this entire expenditure could be treated as capital expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the Income-tax Appellate Tribunal was correct in law in allowing loss of Rs. 1,91,24,374 on account of foreign exchange rate fluctuation ?" 2. In so far as, question No. (c) is concerned, on 3rd March, 2009 itself this court has observed that it was covered by the decision of this court in CIT v. Woodward Governor India [2007] 294 ITR 451. We may only add that the aforesaid decision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods in the local market in the subsequent years. The very basis of such a comparison was faulty and primarily influenced by this consideration the Commissioner of Income-tax (Appeals) deleted the addition which is confirmed by the Income-tax Appellate Tribunal. The approach of the Commissioner of Income-tax (Appeals) is perfectly justified as the Assessing Officer had come to the conclusion tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Appellate Tribunal, inasmuch as, the grievance of the assessee was that the entire amount of Rs. 2,11,20,147 should have been treated as revenue expenditure. The admitted facts are that under the agreements dated December 25, 1998 titled as "agreement for technical service" and "agreement for personnel dispatching and receiving", the assessee had paid total amount of Rs. 7.33 cror ..... X X X X Extracts X X X X X X X X Extracts X X X X
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