TMI Blog2018 (3) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... working capital requirements. Therefore, loss on account of foreign exchange variation would be allowable as a trading loss. In fact, even the Assessing Officer has held that term loan was not utilized for purchase of plant and machinery. We find that this issue stands covered by the decisions of the Supreme Court in Sutlej Cotton Mills Ltd., v/s. CIT (1978 (9) TMI 1 - SUPREME Court) that loss ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. C. Mr. Saxena, learned Counsel appearing for the Revenue states that Respondent had been served and undertakes to file affidavit of service on or before 1st March, 2018. 2 This Appeal under Section 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 27th August, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 27th August, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness loss? 4 Re. Question (b): (i) We find that the Respondent-Assesssee is engaged in the export of readymade garments, imitation jewellery, handicrafts etc., In the course of its business, the Respondent had taken a term loan in Foreign Exchange for purchase of assets but used it for working capital requirements. The Respondent claimed the loss arising on account of foreign exchange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A). It held that the foreign exchange term loan was utilized for working capital requirements. Thus, the loss on account of foreign exchange difference is allowable as a revenue loss. The appeal of the Revenue was dismissed; (iv) We find that both the CIT(A) as well as the Tribunal have on perusal of the record, have come to a conclusion that the loan taken was utilized only for working c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion as proposed does not give rise to any substantial question of law. Thus, not entertained. 5 Re. Question (a):Appeal admitted on the substantial question of law at (a). 6 Registry is directed to communicate copy of this order to the Tribunal. This would enable the Tribunal to keep papers and proceedings relating to the present appeal available, to be produced when sought for by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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