2007 (10) TMI 282

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..... r 15, 2006, passed by the Income-tax Appellate Tribunal ("the Tribunal"), Delhi Bench "A", New Delhi, in ITA No. 3100/Delhi/2004 relevant for the assessment year 2001-02. 2. The assessee is a manufacturer of bleaching earth (also known as fuller's earth) which is used for purification of coconut oil. The assessee also exports fuller's earth to Singapore and Malaysia. It appears that the assessee .....

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..... rth than what had been agreed to on the basis of the prevalent rate of the US dollars at the time of placing of the order. The assessee treated this as a trading loss. This was, however, not accepted by the Assessing Officer or by the Commissioner of Income-tax (Appeals) ("the CIT(A)"). 4. The Tribunal, on examination of the facts of the case came to the conclusion that the assessee was required .....

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..... ofit or loss if the foreign currency is held by the assessee on revenue account or as a trading asset or as part of circulating capital embarked in the business. But, if, on the other hand, the foreign currency is held as a capital asset or as fixed capital, such profit or loss would be of capital nature." 5. On the facts of the present case, we are unable to find any fault in the view taken by .....

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