TMI Blog2020 (1) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... held that there was no long term loan liability, and the fixed assets were of negligible value, and therefore, the provisions of Section 43A of the Act cannot be applied in the present facts and circumstances as it deals with the capital account transaction. The Tribunal following the decision of the Supreme Court in CIT vs. Woodward Governor India Private Ltd [ 2009 (4) TMI 4 - SUPREME COURT] held that the trading liability arising on account of currency fluctuation is ascertained liability, and therefore, it is eligible for deduction. In view of the findings of fact arrived at by both the authorities, there is no infirmity in the impugned order passed by the Tribunal which is based upon the facts emerging from the record as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f provision made by the assessee firstly on the ground that deduction for the provision relating to the import of goods on account of exchange fluctuation is available only on the actual payment as per the provisions of Section 43A of Act, 1961, and secondly, such provision on account of currency fluctuation is representing the unascertained liabilities which is not allowable as deduction under Section 37(1) of the Act. 4. Being dissatisfied with the assessment order, the assessee carried the appeal before the CIT (Appeals) to delete the addition made by the Assessing Officer. 5. The Revenue carried the matter before the Tribunal. The Tribunal, after considering the submissions made before it as well as the order passed by the CIT(App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss suffered by the assessee on account of exchange differences as on the date of the balance sheet is an item of expenditure under section 37(1) of the 1961 Act. From the above, it is clear that the trading liability arising on account of currency fluctuation is ascertained liability, and therefore, it is eligible for deduction. 5.3 We also note that the assessee has been adjusting the books of accounts consistently on account of currency fluctuation, which has been accepted by the Revenue in the earlier years. Therefore, we are of the view that the assessee is also entitled to the deduction of such provision as per the principles of consistency. In view of the above, we do not find any reason to interfere in the finding of the le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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