TMI Blog2016 (8) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the loss was not on account of derivatives but are in fact losses and gains in foreign exchange relating to the purchase and sales transactions i.e. creditors and debtors outstanding as on 31st March, 2010. Therefore, the Instruction no.3 of 2010 issued by CBDT would have no application to the facts of the present case. In fact, the issue arising herein would be covered by the principles laid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment Year 200910. 2. The Revenue urges the following question of law for our consideration : Whether on the facts and in the circumstances of the case and in law, the Tribunal is justified by allowing foreign exchange fluctuation loss of ₹ 62.62 lakhs to set off against the taxable income without considering the CBDT's instruction No.3 of 2010 dated 23.03.2010? 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed reliance upon the decision of the Apex Court in Commissioner of Income Tax Vs. Woodward Governor India (P) Ltd. 312 ITR 254 to hold that where the loss suffered by an assessee due to fluctuation of foreign exchange as on the date of balancesheet in respect of purchase and sales of goods (payment have to be made / received) is allowable as expenditure under Section 37(1) of the Act. 5. The gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid down sby the Apex Court in Woodward Governor India (P) Ltd. (supra). 7. Accordingly, as the impugned order of Tribunal followed by the decision of the Apex Court in Woodward Governor India (P) Ltd. (supra) which governs the issue, the question as proposed does not give rise to any substantial question of law. Thus, not entertained. 8. The appeal is dismissed. No order as to costs. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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