TMI Blog2007 (10) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in the rate of foreign exchange (US dollars), as on March 31, 2001, there was an increase in the liability of the assessee – held that assessee rightly treated this as a business loss - 897 of 2007 - - - Dated:- 23-10-2007 - MADAN B. LOKUR, and DR. S. MURALIDHAR JJ. Ms. P. L. Bansal with Vishnu Sharma for the appellant. JUDGMENT 1. The Revenue is aggrieved by an order dated De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it adjusted the advances partly against the supplies made for the period April 1, 2001 to December 31, 2001, and the balance against the sales made on March 25, 2002. 3. As a result of the fluctuation in the rate of foreign exchange (US dollars), as on March 31, 2001, there was an increase in the liability of the assessee as it would have been required to supply somewhat larger quantities of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of the Supreme Court in Sutlej Cotton Mills Ltd. v. CIT [1979] 116 ITR 1 (SC) where it was held as follows (page 13) : "The law may, therefore, now be taken to be well-settled that where profit or loss arises to an assessee on account of appreciation or depreciation in the value of foreign currency held by it, on con-version into another currency, such profit or loss would ordinaril ..... X X X X Extracts X X X X X X X X Extracts X X X X
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