GILLETTE INDIA LTD. Vs. CIT

JUDGEMENT

(1.) THIS income -tax appeal is directed against the order of the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur (for short, Tribunal) passed in ITA No. 944/Jp/1993 dt. 9 -3 -2000 and pertains to assessment year 1990 -91.

(2.) THE brief facts, as emerging on the face of record, are that the appellant is a limited company and is engaged in the business of manufacturing, selling and export of safety razor blades, safety razors and other shaving products declared an income of Rs. 97,01,592 on 31 -12 -1990.

(3.) THE short controversy in the present appeal relates to an amount of Rs. 3,52,776 on account of exchange rate difference which was claimed by the appellant. The assessing officer not satisfied with the aforesaid claim, issued a show -cause notice as to why the said amount be not disallowed. It was the claim of the appellant that it had purchased raw material from foreign suppliers and the amount was lying outstanding at the close of the year as a credit balance and as per the accounting system regularly followed foreign currency liability was revalued as on close of the financial year and there was increase in liability to the tune of Rs. 3,52,277 and accordingly it was claimed as an expense.