M/s. Perfetti India Ltd. Vs. ACIT (ITAT Delhi)- Considering all the aspects and principle of consistency propounded by the Hon’ble Supreme Court in the case of Radha Swami Satsand vs. ITO reported in 193 ITR 321, we are of the opinion that loss suffered by the assessee on account of exchange rate fluctuation is allowable expenditure in this year also. The assessee may not be able to produce evidence of the utilization of the capital before the AO but from the orders of the AO in earlier years and in subsequent years impliedly, it is ascertainable that it is used for the working capital which is in a revenue account.
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : ‘A’ NEW DELHI
BEFORE SHRI G.E. VEERABHADRAPPA, VICE PRESIDENT AND
SHRI RAJPAL YADAV, JUDICIAL MEMBER
I.T.A No. 4976/Del/02 Asst. Year : 1998- 99
M/s. Perfetti India Ltd. Vs. ACIT,
ORDERPER RAJPAL YADAV : JM
The assessee is in appeal before us against the order of Ld. CIT(A) dated 31st October,2002 passed for asstt. year 1998-99. The appeal of the assessee was decided by the Tribunal vide its order dated 22nd April, 2004. Assessee carried the matter in appeal before the Hon’ble High Court vide ITA No. 650/2004. Hon’ble High Court has dismissed the appeal of assessee vide order dated 6.12.2004. The assessee had filed miscellaneous application bearing number 133/D/2005. This miscellaneous application was also dismissed by the Tribunal vide its order dated 15th June, 2005. The assessee had filed a SLP before the Hon’ble Supreme Court challenging the orders of the Tribunal as well as of the Hon’ble High Court. Hon’ble Supreme Court has set aside the orders of the Hon’ble High Court as well as of the Tribunal and remitted the issue back to the Tribunal for deciding the issue denovo. The order passed by the Hon’ble Supreme Court on 2nd December, 2010 in civil appeal No. 10219 of 2010 read as under
