Case Law Details
CIT Vs Hazira LNG Pvt Ltd (Gujarat High Court)
CIT(A) recorded a finding that earning of the assessee from foreign exchange fluctuations was not in connection with its business activity. The finding was in the realm of appreciation of facts and material, therefore, is factual in nature. Such a finding came to be affirmed by the Tribunal, which is a finding of fact of the authority.
The issue involved in the present Appeal which relates to deleting the addition of Rs. 6,09,97,186/- made by the Assessing Officer, on account of gain on foreign exchange fluctuation, is similar and identical to the issue identical to the issue involved in Tax Appeal No. 188 of 2012 which has been answered in favour of assessee and against the Revenue, as noticed hereinabove.
Consequently, the substantial question of law in this Appeal is answered against the Revenue.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. This Tax Appeal is directed against the order passed by Income Tax Appellate Tribunal in ITA No. 2750/Ahd/2009 dated 30.09.2011. It is a common order passed by the Tribunal namely it was passed ITA No. 2749/Ahd/2009 connected with ITA No. 2750/Ahd/2009.
2. Against the aforesaid order of the Tribunal, two appeals were filed by the Revenue in Tax Appeal No. 188 of 2012 (against the ITA No. 2749/Ahd/2009) and the present ITA i.e. Tax Appeal No. 155 of 2012 (against order passed in ITA No. 2750/Ahd/2009). The present Appeal came to be admitted to consider substantial question of law as formulated in the Appeal Memorandum and recorded in the order of admission dated 19.07.2012. However, the connected Appeal which came to be listed on 25.07.2012 i.e. Tax Appeal No. 188 of 2012 was disposed of or dismissed on 25.07.2012 by observing thus :
“5.1 On the facts of the present case, the CIT(A) recorded a finding that earning of the assessee from foreign exchange fluctuations was not in connection with its business activity. The finding was in the realm of appreciation of facts and material, therefore, is factual in nature. Such a finding came to be affirmed by the Tribunal, which is a finding of fact of the authority.
6. We are in agreement with the view taken by the Tribunal. The findings and conclusions are proper and reasonable and are arrived at by correctly by applying principle of law enunciated in the judicial pronouncements. No substantial question of law arises for consideration.”
3. The issue involved in the present Appeal which relates to deleting the addition of Rs. 6,09,97,186/- made by the Assessing Officer, on account of gain on foreign exchange fluctuation, is similar and identical to the issue identical to the issue involved in Tax Appeal No. 188 of 2012 which has been answered in favour of assessee and against the Revenue, as noticed hereinabove.
4. In that view of the matter, the substantial question of law formulated in this Appeal is answered against the Revenue and in favour of Assessee in the light of the finding recorded in Tax Appeal No. 188 of 2012.
5. Consequently, the substantial question of law in this Appeal is answered against the Revenue. Present Tax Appeal disposed of accordingly.
6. Civil Application No. 1 of 2022 does not survive for consideration. Accordingly, it stands rejected.
