CIT Vs. GOYAL M.G. GASES (P.) LTD.

JUDGEMENT

(1.) THE revenue is aggrieved by an order dated 21 -7 -2006 passed by the Income Tax Appellate Tribunal ('the Tribunal') Delhi Bench 'D' in ITA No. 1320 (Delhi) of 2002 relevant for the assessment year 1998 -99.

(2.) THE assessee had taken a loan in foreign exchange from the Citi Bank, UK. The total amount borrowed was about US 7 million. It appears that a part of the loan amount was utilized for purchase of capital equipment and that was included in capital work -in -progress. The remaining amount of US 3.67 million was utilized by the assessee for its business purposes that is of money lending and bill discounting.

(3.) IN view of the fact that there was a fluctuation in the rate of foreign exchange, the assessee suffered a loss and it claimed a deduction on account of the loss incurred.