COMMISSIONER OF INCOME TAX Vs. AMBA IMPEX

JUDGEMENT

(1.) THE appellant -Revenue has proposed the following three questions :

(2.) AFTER hearing Mr. M.R. Bhatt, the learned senior standing counsel for the appellant on 15th Nov., 2005, notice had been issued to the respondent and accordingly Mr. T.P. Hemani appears on behalf of the respondent and has been heard. Considering the fact that the controversy between the parties lies in a narrow compass, and in light of the view that the Court is inclined to take, the appeal is taken up for final hearing and disposal today after order of admission.

(3.) THE assessment year is 2001 -02 and relevant accounting period is financial year 2000 -01. While framing the assessment order under Section 143(3) of the IT Act, 1961 (the Act), the AO came to the conclusion that the exchange rate difference on export realisation for prior period, i.e., upto 31st March, 2000, being Rs. 13,18,068, was not an allowable deduction. The assessee carried the matter in appeal but did not succeed. Hence, the assessee preferred second appeal before the Tribunal. The Tribunal has upheld the claim made by the assessee on the basis of decision of this High Court in the case of Hindustan Trading Corporation v. : [1986]160ITR15(Guj) by treating the receipt in question as being on revenue account. Tribunal has also placed reliance on various other decisions of different Benches of Tribunal.