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TMI Blog2011 (3) TMI 1664X X X X Extracts X X X X X X X X Extracts X X X X ..... This is an assessee's appeal filed against the order of Ld CIT(A)XI, New Delhi dated 18.10.2010 for assessment year 2006-07. 2. Ground No.1 of the appeal is as under:- For that the Ld CIT(A) erred in confirming the addition of ₹ 5,89,194/- made by the ld Assessing Officer on account of foreign exchange loss by treating the same to be a notional liability not admissible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble as revenue expenditure but if the same is in respect of fixed assets or capital items, the same has to be capitalized. In the present case, this fact is not brought on record as to whether this loss on account of exchange fluctuation is in connection with current assets/liabilities or in respect of capital items. Hence, we feel that this matter should go back to the file of the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the assessing officer in the assessment order that a sum of ₹ 89,147/- has been debited on account of club fees to the Profit Loss Account. It is also noted by the Assessing Officer that the auditors has certified that the club fees expenses are personal in nature. On this basis, the Assessing Officer held that the same is not allowable and he disallowed the same. Being aggrieved, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the auditor that the expenditure of personal nature debited to P L A/c is nil. We also find that in Col No.17D of the tax audit report is the requirement regarding details of expenditure incurred on club. In that column, it has been reported by the tax auditor that the details are as per annexure-V which is annexed to tax audit report and is available on page No.25 of the paper book. As per t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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