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TMI Blog2013 (2) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... t while even a notional loss can be claimed by way of a business loss deductible item in computing the income of the assessee for the year, made dependent on the manner of conduct of the assessee in respect of the earlier assessment period and particularly as to the assessee has been following this uniformly over a period of years and the test being when there was a notional gain as to whether it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,04,000/- claimed as a foreign exchange loss on account of restatement of CDC loan should be treated as a revenue loss despite the same not having actually arisen and was only notional?. 2. Assessee is a financial company and the assessment year in question is 2000-01. Assessee had claimed certain deductions by way of loss in its business income, due to fluctuations in the rate of exchange on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss and as a deductible item in computing the income of the assessee for the year, as it is a computation on notional basis, it is made dependent on the manner of conduct of the assessee in respect of the earlier assessment period and particularly as to the assessee has been following this uniformly over a period of years and the test being when there was a notional gain as to whether it had been o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d definite in making entries in the account books in respect of losses and gains; (v) whether the method adopted by the assessee for making entries in the books both in respect of losses and gains is as per nationally accepted accounting standards; (vi) whether the system adopted by the assessee is fair and reasonable or is adopted only with a view to reducing the incidence of taxation. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principle that being further made subject to the fulfilment of the conditions, the matter has to go back to the assessing officer for examination. In this view of the matter, the appeal is allowed in these terms. The claim of the assessee to be reexamined by the assessing officer and in respect of the assessment year applying the test of fulfilment of the six conditions mentioned above. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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