2010 (12) TMI 189

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..... dgment of the court was delivered by Adarsh Kumar Goel J.-This appeal has been preferred by the Revenue under section 260A of the Income-tax Act, 1961 against the order of the Income-tax Appellate Tribunal, Delhi Bench "F" passed in I. T. A. No. 1496/Delhi/2003 dated October 27, 2004, for the assessment year 1998-99, claiming the following substantial question of law : "Whether the hon'ble Incom .....

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..... cause of fluctuation in foreign currency is not a contingent liability. The appellant-company is following the mercantile system of accounting and following the accounting standard issued by ICAI. The Chamera project has already started the operation and the assets of the project are in use. Therefore, keeping the aforesaid facts and the legal position as enunciated by the Delhi Income-tax Appella .....

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..... n loan should be taken into account to modify the figure of actual cost in the year in which the increase or decrease in liability arises on account of fluctuation in the rate of exchange. This has to be done irrespective of the date of actual payment in foreign currency. 6. In view of the above, the question claimed on behalf of the Revenue is answered against the Revenue. 7. The appeal is dism .....

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