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TMI Blog2010 (10) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... irst question raised pertains to assessee's claim for deduction of exchange rate fluctuation on the outstanding loan which is stated to be $ 25 lakhs. The assessing officer found that the loan remained outstanding and the exchange rate fluctuation is not actual liability but is only a provision which cannot be allowed. The contention of standing counsel is that the first appellate authority as well as the Tribunal allowed the claim by following Accounting Standards (AS) II issued by the Institute of Chartered Accountants of India. According to counsel for the revenue unless liability is accrued the assessee cannot claim deduction. Counsel appearing for the assessee on the other hand contended that loan account maintained in the Balance Shee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to assessee's claim of deduction of depreciation which was disallowed by the assessing officer for the reason that machinery itself is installed on 31.3.2002. It is seen that the first appellate authority as well as the Tribunal allowed the claim by following the decision of this Court in GEO TEC CORPORATION, 244 I.T.R. 452, wherein this Court has held that if machinery was kept ready for use, the assessee is entitled to claim depreciation. Senior counsel appearing for the revenue contended that the value of machinery itself is around Rs.98 lakhs and there is nothing to indicate that the assessee has even kept the machinery ready for use even assuming that the same is sufficient for claiming depreciation. Counsel appearing for the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issues stated above. 4. The next ground pertains to assessee's entitlement for deduction of amounts paid to two consultants, one being Rs.2,15,748/- and the other being Rs.5 lakhs. After hearing both sides and after going through the Tribunal's order, we find no merit in this ground because assessee was carrying on business and the advice given by them was for the purpose of business and so much so, the Tribunal rightly held that expenditure is revenue in nature entitling the assessee for deduction. We therefore dismiss the appeal on this issue. 5. The next ground raised by the revenue pertains to disallowance of Rs.13,27,234/- which is the expenses incurred by the assessee on behalf of Hindustan Lever Ltd. Senior counse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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