9911796707
TMI Blog2018 (2) TMI 2027X X X X Extracts X X X X X X X X Extracts X X X X ..... ank charges u/s 37(1). Hence, following the decision of the Hon ble Supreme Court in CIT Vs. Woodward Governance India Pvt. Ltd [ 2009 (4) TMI 4 - SUPREME COURT ] the allowed the claim of the assessee to the extent of 50%. He further held that looking to the facts on record and the true nature of transactions it cannot be said that the entire sum expended by the assessee are wholly and exclusively for the purposes of business. AR also could not show that the whole funds have been used for the business purposes. No such details were mentioned before the ld AO or before the ld CIT(A). While disallowing the bank charges to the extent of 50% vide order he has also mentioned that the reasons for the confirmation of disallowance is absence of com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undisputed that the loan and consequently, expenses were capital in nature and hence, liable to be added as a whole." 3. The assessee has raised the following grounds of appeal:- "That on the facts and circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals)-VI, New Delhi (hereinafter referred to as the Ld CIT (Appeal)) erred in upholding disallowance made by the Assessing Officer towards interest on working capital loan of ₹ 2,21,07,527 and foreign exchange fluctuation loss of ₹ 6,64,26,626. 1. That the Ld CIT (Appeal) erred in law in upholding the 50% of disallowance made by the Assessing Officer towards interest on working capital loan of ₹ 2,21,07,527 without applying his m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. In the result appeal of the assessee is dismissed. 6. Coming to the ground of the appeal of the revenue wherein the disallowance of foreign exchange loss restricted from ₹ 132853251/- to ₹ 66426625/- is contested stating that expenses were capital in nature and hence required to be disallowed. 7. The ld DR relied on the order of the ld AO and the ld AR relied on the order of the ld CIT(A). 8. We have carefully considered the rival contentions. The ld AO has disallowed the loss on account of foreign exchange fluctuation stating that these expenditure have not been incurred by the assessee for the purposes of the business. 9. The ld CIT(A) allowed the claim of the assessee @50% of such claim holding that assessee has incur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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