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Issues Involved:
The judgment involves the disallowance of claimed losses due to currency devaluation, disallowance of loss incurred on remittance of foreign currency loan, and the admissibility of a fee paid under the Companies Act as a business expenditure. Loss on Currency Devaluation: The assessee, a closely held company engaged in manufacturing, claimed a loss of Rs. 91,366 due to devaluation of the Indian currency in the assessment year 1973-74. The Tribunal disallowed this claim, considering it an expenditure of capital nature. The court referred to a previous decision involving the same parties and upheld the disallowance, citing relevant case law. Loss on Remittance of Foreign Currency Loan: The assessee paid the second instalment of a loan obtained in foreign currency and incurred a loss of Rs. 14,700. This loss was also disallowed by the Tribunal as an expenditure of capital nature. The court, following the precedent set in a previous case, affirmed the disallowance of this loss as well. Admissibility of Fee under Companies Act: The assessee increased its share capital and paid a fee of Rs. 8,250 under the Companies Act. The assessee claimed this fee as a business expenditure, which was rejected up to the Tribunal stage. The court analyzed relevant case law, including decisions by the Supreme Court and the Madras High Court, and concluded that the fee paid for increasing share capital was an expenditure of capital nature. The court held in favor of the Revenue, directing the case back to the Tribunal for further proceedings based on the observations made in previous decisions.
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