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TMI Blog2020 (2) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... -13. 2. The Revenue has proposed the following questions as the substantial questions of law arising out of the judgment and order passed by the Tribunal; "2(A)Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance made on account of depreciation claimed on infrastructure facility amounting to Rs. 10,13,23,469/- without properly appreciating the facts of the case and the material brought on record? 2(B) Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance made on account of forex loss amounting to Rs. 92,22,371/- without properly appreciating the facts of the case and the material brought on record" 2(C ) Whether the Appellate Tribunal has erred in law and on fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. With regard to the loss of Rs. 2,33,24,764/- which was disallowed by the Assessing Officer as speculation loss applying the provision of Section 43(5)(d) of the Act, 1961 is concerned, the CIT (A) allowed the appeal of the respondent assessee and arrived at the conclusion that there was a binding obligation accrued against the assessee when it entered into the foreign exchange forward contracts. The forward contracts are in respect of the consideration for export profits which are revenue items and the liability is determinable with the responsible certainty when an obligation is pending on the balance sheet date and such a liability cannot be said to be a contingent liability. The CIT (A) relied upon the decision of this Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsider that foreign exchange loss on account of forward contract incurred by the assessee from year to year basis was correctly allowed by the Ld. CIT(A). Therefore, we do not find any irregularity in the order of the Ld. CIT(A), therefore, the appeal of the revenue on this issue is dismissed. Similarly, disallowance of realized foreign exchange loss of Rs. 23,32,49,764/- by the assessing officer by treating the same as speculation loss u/s. 43(5)(d) of the Act is not justified. Since the assessee was not the dealer in foreign exchange but providing the operating container handling terminal services and there was no purchase or sale of commodity settled otherwise than actual delivery, therefore, the same cannot be termed as speculation tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions Nos. 2(B) & 2(C) are concerned and the appeal stands dismissed qua both the questions. 10. So far as the Question No. 2(D), which arises out of the disallowance made by the Assessing Officer under Section 14A of the Act, 1961 read with Rule 8D of the Income Tax Rules is concerned, the Tribunal, applying the principles as laid down by this Court in the case of CIT vs. Corrtech Energy Pvt. Ltd., reported in 372 ITR 97 wherein it has been held that where the assessee has not claimed any exempt income, no disallowance under Section 14A of the Act can be made, dismissed the appeal of the Revenue on the ground that the assessee did not claim any exempt income. 11. We do not find any infirmity in the impugned order passed by the Tribunal a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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