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TMI Blog2011 (3) TMI 1655X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of business loss to the tune of ₹ 2,04,94,278/-, made by the AO based on the facts that there was no export or allied activities and no earning of foreign exchange. Ld. CIT(A.) had failed to appreciate that provisions of sec. 115 is not applicable in this instant case. (3) That under the facts and circumstances of the case, ld. CIT(A.) had erred in deleting disallowance of business loss to the tune of ₹ 12,76,000/- made by the AO based on the fact that during the period in question the assessee did not make any single sale. Since there was no sale, question of any loss does not arise. Moreover, the assessee could not substantiate the purchase, in spite of having a stock of ₹ 3.12 crore, where there was no sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(Appeals). 4. On the other hand, the ld. Authorized Representative of the assessee supported the order of the ld. CIT(Appeals). He submitted that the assessee incurred an amount of ₹ 12,76,000/- as expenditure towards establishment and other miscellaneous expenses in connection with its business. On a query from the Bench the ld. A.R. filed the details of the break-up of the expenses aggregating ₹ 2,17,77,881/-, which was claimed under the head Operating Expenses . He submitted that there was the claim of ₹ 2,04,94,273/- under the head Loss due to Foreign Exchange Fluctuation and the balance amount of ₹ 12,76,000/- is the expenditure incurred towards establishment and miscellaneous expenses. The ld. A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 that the said foreign exchange loss had arisen to the assessee as a business loss and the same had rightly been allowed by the ld. CIT(Appeals). Accordingly, Grounds No. 1 2 of the appeal were rejected by the Tribunal. 7. Since we have already held that the assessee had not closed its business and have given a finding that in the succeeding assessment year to the assessment year under consideration, there were exports to the extent of ₹ 17,11,25,866/- and in the assessment year under consideration, no export could take place due to political unrest in Iraq, we agree with the ld. CIT(Appeals) that the assessee was required to maintain its business establishment and to meet the expenses on account of establishment and administrat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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