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TMI Blog1979 (11) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... e is a foreign incorporated company doing business in cloth. The, assessment year in question is the year 1967-68 and the corresponding previous year is the year ended on December 31, 1966. The assessee was exporting cloth to England and America. It exported goods valued at pounds 723 to England and $ 1,561 to the United States of America before 6th June, 1966. On that date, the Indian rupee was d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. Thereafter, at the instance of the assessee, the following question of law has been referred to us for decision: " Whether, on the facts and in the circumstances of the case, the surplus of Rs. 9,758 realised by the assessee as a result of devaluation of the Indian rupee was a business profit or a capital gain ? It appears to us that the answer given by the Tribunal is the only an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it, on conversion into another currency, such profit or loss would ordinarily be trading profit or loss if the foreign currency is held by the assessee on revenue account or as a trading asset or as part of circulating capital embarked in the business." The Tribunal, therefore, came to the right conclusion. Shri Bishamber Lal, counsel for the assessee, invited our attention to the decision of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ediately on the receipt of the cheque. The Kerala High Court held that the amount settled with the insurer did not include any excess profit and the profit that arose was wholly due to devaluation. We do not think that this decision is of any help to Mr. Bishamber Lal. The Kerala High Court has in this judgment referred to its two earlier decisions in Shamshuddin's case [1973] 90 ITR 323 and in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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