TMI Blog2020 (2) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... h mandates entering of foreign currency contract only with the Banks. Disallowance of the realized foreign exchange loss made by the assessing officer by treating the same as speculation loss u/s. 43(5)(d) of the Act is concerned, the Tribunal has given a finding that as the assessee was not the dealer in the foreign exchange but providing the operating container handling terminal services and there was no purchase or sale of commodity otherwise than the actual delivery, such loss cannot be termed as speculation transaction. Disallowance u/s 14A read with Rule 8D - HELD THAT:- Tribunal, applying the principles as laid down by this Court in the case of CIT vs. Corrtech Energy Pvt. Ltd., [ 2014 (3) TMI 856 - GUJARAT HIGH COURT] where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(C ) Whether the Appellate Tribunal has erred in law and on facts in treating the speculation loss of ₹ 2,33,24,764/- as business loss without properly appreciating the fats of the case and the material brought on record? 2(D) Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance made u/s.14A of the Act amounting to ₹ 35,00,000/- without properly appreciating the facts of the case and the material brought on record? 2. So far as the Question No.2(A) is concerned, Mr. M.R. Bhatt, the learned senior counsel appearing for the appellant submitted that such question has already been admitted in the case of the same assessee for the previous year in the Tax Appeal No.636 of 2019. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 case of CIT vs. Panchmahal Steel Ltd., reported in (2013) 33 taxmann.com 10. 6. The Revenue carried the matter further in appeal before the Income Tax Appellate Tribunal. The Tribunal, after considering the facts on record, passed the following order; 10. We have heard the rival contention and perused the material on record carefully. It is noticed that assessee has claimed loss under the category of realized and unrealized loss. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss 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 transaction in the case of the assesee. After considering the detailed finding of Ld. CIT(A) and submission of the assessee produced at page no. 52 to 68 of the Ld. CIT(A), we do not find any substance in the finding of assessing officer treating the foreign exchange loss as speculative loss, therefore, this ground of appeal of the revenue is also dismissed.. 7. The Tribunal, after considering the order passed by the CIT (A) and other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 and, therefore, the appeal stands dismissed so far as the Question No. 2(D) is concerned. 12. This tax appeal is, therefore, admitted only for the following substantial question of law; 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 ₹ 10,13,23,469/- without properly appreciating the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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