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TMI Blog2014 (8) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... r Sindhu ORDER PER Dr. S.T.M. PAVALAN, JM: This Appeal filed by the Assessee is directed against the order of the Ld.CIT(A)-19, Mumbai dated 22.11.2011 for the Assessment Year 2007-08. 2. In this appeal, the assessee has raised six grounds, all relating to the single issue of allowability of foreign exchange loss incurred by the assessee. 3. Briefly stated, during the assessment proceeding, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 254 (SC) and ONGC Vs. CIT 322 ITR 180(SC) and prayed that the loss being a expenditure was allowable deduction while computing the income u/s 37 of the Income-tax Act. However, the Ld.CIT(A) rejected the contentions of the assessee and concluded that the assessee has raised ECB in 2003-04 for expansion of its Panoli Plant and it could not be shown that any component borrowings was utilized tow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... general account of expansion of three existing industrial unit and hence, the ECB borrowings are not on capital account. Further, foreign exchange loss is to be determined as per the provision of accounting standard 11 read with standard 16 which provides that foreign exchange loss to the extent of difference between interest payable on borrowings made in foreign currency and interest payable in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form part of the record. On the other hand, the Ld.DR has heavily relied on the decision of the Ld.CIT(A) in support of the revenue's case. After perusing the rival contentions of both the sides, it is pertinent to mention that during the assessment year 2009-10, the assessee company has claimed foreign exchange loss of Rs. 97,86,680/- which consist of loss of reinstatement of outstanding liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X
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