COMMISSIONER OF INCOME TAX Vs. PUNJAB ANAND INDUSTRIES

JUDGEMENT

(1.) THIS appeal has been preferred by the Revenue under section 260A of the Income -tax Act, 1961 (in short, "the Act"), against the order dated January 29, 2008, passed by the Income -tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (for brevity, "the ITAT") in I.T.A. No. 293/Chandi/2007, for the assessment year 1993 -94, claiming following the substantial question of law:

(2.) LEARNED counsel for the Revenue submitted that unless the amount was actually paid on account of exchange rate fluctuation by the assessee, the benefit of the same should not have been allowed to the assessee as has been done by the Income -tax Appellate Tribunal. Relying upon the decision of the apex court in CIT v. Lucas T.V.S. Ltd. : (2008)297 ITR 429 (SC), Asst. CIT v. Elecon Engineering Co. Ltd. : (2010)322 ITR 20 (SC) and the Karnataka High Court in CIT v. Wipro Finance Ltd. : (2010) 325 ITR 672 (Karn), it was urged that section 43A of the Act was amended by the Finance Act, 2002, with effect from April 1, 2003, which was clarificatory in nature and, therefore, the same was applicable to assessment years prior thereto as well.

(3.) AFTER hearing the learned counsel for the parties, we do not find any merit in the appeal.