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TMI Blog2014 (8) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy and the same has been accepted by the department. It is also pertinent to mention that during the previous AYs from 2001-02 to 2006-07, the department has accepted the gain offered by the assessee as income on account of similar foreign exchange fluctuation. When the facts are being, we do not find any justification on the part of the authorities below to disallow the loss claimed by the assessee during the year under consideration. AO is directed to verify the correct computation and allow the claim of the assessee accordingly. Appeal filed by the Assessee is treated as allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of its Panoli Plant and it could not be shown that any component borrowings was utilized towards any revenue items. Thus, the Ld.CIT(A) held that the unrealized foreign exchange loss had resulted on capital account in view of the decision of the Hon'ble Apex Court in the case of Woodward Governor India Pvt. Ltd.(supra) and thereby confirmed the disallowance made by the AO. However, while deciding so, the Ld.CIT(A) directed the AO to verify the the mistake in computation of the unrealized foreign exchange loss which was actually ₹ 125.06 lakhs and not ₹ 131.8 lakhs. Resultantly, the disallowance of ₹ 125.06 lakhs was confirmed by the Ld.CIT(A). Aggrieved by the impugned decision, the assessee is in appeal before us. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue's case. After perusing the rival contentions of both the sides, it is pertinent to mention that during the assessment year 2009-10, the assessee company has claimed foreign exchange loss of ₹ 97,86,680/- which consist of loss of reinstatement of outstanding liability on account of ECB loans in foreign currency and the same has been accepted by the department. It is also pertinent to mention that during the previous AYs from 2001-02 to 2006-07, the department has accepted the gain offered by the assessee as income on account of similar foreign exchange fluctuation. When the facts are being, we do not find any justification on the part of the authorities below to disallow the loss claimed by the assessee during the year under con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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