2023 (8) TMI 1593 - SCH - Income Tax

Foreign exchange gain on restatement of external commercial borrowings - Whether liable to tax as it is on the capital account? - brought forward book loss in computation of income and Section 115JB - As decided by HC 2022 (9) TMI 1539 - KARNATAKA HIGH COURT adjustment on account of foreign exchange rate fluctuation is required to be made to actual cost at the end of every year after amendment of Section 43A with effect from 01.04.2003 and upheld CIT(A) s order that the gain arising on account of exchange fluctuation are not liable to tax as it is on the capital account. CIT(A) and the ITAT placing reliance on CBDT Circular No.495 dated September 22 1987 have rightly held that the cumulative brought forward losses or unabsorbed depreciation should be considered for set off. HELD THAT - No case for interference is made out in exercise of our jurisdiction under Article 136 of the Constitution of India. The special leave petition is accordingly dismissed.

Summary

The Supreme Court of India dismissed the special leave petition, citing no interference warranted under Article 136 of the Constitution. Delay was condoned. No appearance for the respondent.