TMI Blog2011 (5) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... his ground of appeal and delete the disallowance - Decided in favour of assessee. - ITA No. 4976/Del/2002, - - - Dated:- 6-5-2011 - G.E. Veerabhadrappa, Rajpal Yadav, JJ. Ajay Vohra and Shikha Sharma, Advs. for the Appellant Anusha Khurana, Sr. DR for the Respondent ORDER Rajpal Yadav:- 1. The assessee is in appeal before us against the order of Ld. CIT(A) dated 31st October,2002 passed for asstt. year 1998-99. The appeal of the assessee was decided by the Tribunal vide its order dated 22nd April, 2004. Assessee carried the matter in appeal before the Hon'ble High Court vide ITA No. 650/2004. Hon'ble High Court has dismissed the appeal of assessee vide order dated 6.12.2004. The assessee had filed miscellaneo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Paper Book] For the afore-stated reasons, the impugned judgment of the High Court is set aside and the matter is remitted to the Tribunal. We direct the Tribunal to decide the matter de novo in accordance with the law laid down by this Court in the case of Woodward Governor India Private Limited [supra] as well as on the merits of this case. The civil appeal is, accordingly, allowed. No order as to costs." 2. The solitary issue required to be adjudicated by us is whether assessee is entitled for a deduction of Rs. 38,30,000/- representing the loss incurred by the assessee on account of fluctuation in the foreign exchange rates in respect of outstanding foreign currency loan obtained and utilised exclusively for working capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITD 159 upheld the order of Ld. CIT(A). The revenue challenged the order of the Tribunal before the Hon'ble Delhi High Court in ITA No. 1014/2007 and the appeal of the revenue was dismissed. He further contended that in asstt. year 1999-2000 again assessee claimed a deduction of Rs. 27,40,000/- on this account. This was disallowed to the assessee and the matter travelled to the Tribunal in ITA No. 1765/D/2003. The Tribunal following the order of the special bench in the case of ONGC allowed the claim of assessee. On the strength of these details, he submitted that in this year also it was a revenue loss. It was disallowed to the assessee by the Ld. AO as well as Ld. CIT(A) on the ground that it is a notional loss. The tribunal confirmed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of fluctuation in exchange rate was accrued at Rs. 32,20,000/-. It was allowed by the AO. In 1997-98, it was Rs. 14,20,000/-. It was disallowed by the AO but allowed by the Ld. CIT(A). This view has been upheld upto the Hon'ble High Court. In asstt. Year 1999-00 Rs. 27,40,000/- was claimed by the assessee. It was disallowed by the AO and Ld. CIT(A) but allowed by the Tribunal. The loan was taken in 1995. Its character was ascertain as a working capital in asstt. Year 1996-97 by the AO himself. According to the assessee, it has become part of circulating capital. Considering all these aspects and principle of consistency propounded by the Hon'ble Supreme Court in the case of Radha Swami Satsand vs. ITO reported in 193 ITR 321, we are of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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