Taxability of profit and loss arising on account of appreciation or depreciation in the value of foreign currency

THE HIGH COURT OF DELHI AT NEW DELHI
SUBJECT : INCOME TAX ACT
Judgment Reserved on: 27.04.2011
Judgment Delivered on:06.05.2011
ITR 38/1995

CIT                                                                            APPELLANT

Vs

DALMIA DAIRY INDUSTRIES LTD.                    RESPONDENT

Advocates who appeared in this case:

For the Appellant :        Ms Prem Lata Bansal, Sr. Advocate with Mr
Deepak Anand & Ms Ruchir Bhatia, Advocates

For the Defendant: Mr V.P. Gupta, Mr Basant Kumar & Ms Priya Deep, Advocates.

CORAM :-

HONORABLE MR JUSTICE SANJAY KISHAN KAUL HONORABLE MR JUSTICE RAJIV SHAKDHER

RAJIV SHAKDHER, J

1. The captioned reference has been preferred at the behest of the Revenue. The reference pertains to assessment year 1977-78 relevant for previous year ending on 30.09.1976. The Income Tax Appellate Tribunal (hereinafter referred to as ‘Tribunal’) by order dated 20.05.1994 has referred to us for adjudication the following question of law: