sterling and that the rupee equivalent to sterling was not adjusted. He also noticed that fixed assets were largely acquired by the company in sterling ... return in sterling showing the sterling value of the different assets. The Income-tax Officer accepted the company's computation in sterling, year after
other sources' - Whether could be computed under head
'income from business'.
HEADNOTE:
The appellant, a sterling company carrying on business
here also that the assessee had in computing the losses taken into consideration the devaluation of pound sterling on 18th November, 1967. This has relevance
devaluation loss of Rs. 4,17,833 was not deductible in computing the assessee's business income ?"
2. The assessee is a private limited ... which WMS as follows :
Rs.
(i) Loss
on devaluation of sterling loan
4,17,833
(ii)
Loss on devaluation on balance outstanding for purchase
question,
sterling was devalued ant the assessee bank had suffered a
1068 in terms of rupee in respect of their holdings in
sterling. This loss ... profit and loss account and claimed as
allowable deduction in the computation of the
assessee's total income for the assessment year
depreciation of the foreign currency embarked in the transactions compared with sterling will prima facie be a trading profit or a trading loss for income ... profit accrued to the appellants on the conversion of repaid advances into sterling. The decision was that the exchange profits arose directly in the course
exhaustive and an item incidental to the business was deductible in computing the profits and gains even if it did not fall ... allowable and any variation in its value had to be ignored for computing the income of the assessee. The assessee went up in appeal before
Schedule 16 to the I.T. Act, 1952 , were profits as computed for the purpose of the foreign tax. The inspector had objected ... made by Lord Donovan to the decision in the case of Sterling Trust Ltd. v. IRC [1925] 12 TC 868 (CA), which we have referred
assessee claimed this liability as a deduction in computing the profits for the assessment year 1967-68. The ITO, however, disallowed this amount by relying ... computing the profits of the company. He further observed that the assessee's liability to pay the nonresident in terms of sterling
Ujagar Prints Etc vs Union Of India & Ors. Etc on 4 November, 1988
Equivalent
