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TMI Blog2014 (5) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... , and finding that it has been actually incurred that the Department's stand in this case has been rejected - Beyond that the Tribunal or CIT(A) have not rendered any findings and which would have far-reaching consequences - All such findings and conclusions must be seen in the backdrop of peculiar facts and circumstances of the case of the assesee - No general principle or rule has been laid down – Decided against Revenue. - Income Tax Appeal No. 2309 of 2011 - - - Dated:- 7-4-2014 - S. C. Dharmadhikari And Girish S. Kulkarni,JJ. For the Appellant : Mr. P. C. Chhotaray For the Respondent : Mr Nishant Thakkar ORDER P. C. 1. Heard Mr.Chhotaray, learned Counsel appearing on behalf of the Revenue. The Revenue is in ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bited an amount of Rs.1,09,69,000/- under the head provision for outstanding repo transactions . On being questioned by the Assessing Officer to justify such a provision, a detailed reply was given by the assessee in writing on 14.11.2006. The assessee submitted that in accordance with the RBI guidelines, whenever any amount is borrowed under Repo to stock or investment, account is credited with the book value of the security given under repo. If the repo price of the security (which is close to the prevailing market price) is different from its book value, the difference is debited or credited to Repo Price Adjustment Account. Similarly, the interest accrued on the security till the date of repo (broken period interest) is credited to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these circumstances that the Tribunal held that the guidelines issued by RBI in repo and reverse repo transaction requires uniform accounting of repo/reverse repo transactions, and that the company in question has followed those guidelines and accordingly debited the sum as a loss. It has been actually incurred, and finding that it has been actually incurred that the Department's stand in this case has been rejected. Beyond that we do not think that the Tribunal or CIT (Appeals) have rendered any findings and which would have far-reaching consequences as urged before us. All such findings and conclusions must be seen in the backdrop of peculiar facts and circumstances of the case of the assesee before us. No general principle or rule h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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