The Tax Publishers2020 TaxPub(DT) 4920 (SC) : (2021) 276 TAXMAN 0085

INCOME TAX ACT, 1961

Sections 37(1) & 28(i)

Department preferred SLP to appeal against the judgment of Gujarat High Court in Pr. CIT v. Suzlon Energy Ltd. [R/Tax Appeal No. 667 of 2018, dt. 27-6-2018] : 2020 TaxPub(DT) 5132 (Ahd-HC), whereby the High Court held that in the case of very assessee in Tax Appeal No. 1000 of 2017, dated 20-2-2018, the issue was decided in favour of the assessee and against the revenue. Following the same, the issue was decided accordingly in favour of assessee, the Supreme Court dismissed the SLPs.

Appeal (Supreme Court) - Special leave petition - Business expenditure - Allowability --- Disallowance of notional loss on account of foreign exchange fluctuation loss claimed on account of Mark-to-Market basis

Department preferred SLP to appeal against the judgment of Gujarat High Court in Pr. CIT v. Suzlon Energy Ltd. [R/Tax Appeal No. 667 of 2018, dt. 27-6-2018] : 2020 TaxPub(DT) 5132 (Ahd-HC), whereby the High Court held that in the case of very assessee in Tax Appeal No. 1000 of 2017, dated 20-2-2018, the issue was decided in favour of the assessee and against the revenue. Following the same, the issue was decided accordingly in favour of assessee. Held: The Division Bench of the High Court of Gujarat by its judgment and Order, dated 27-6-2018 followed its earlier decision in Tax Appeal No. 1000 of 2017. Following the earlier decision, the appeal was not entertained on the following question : 'A Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of notional loss on account of foreign exchange fluctuation loss amounting to Rs. 1,26,42,63,740 claimed on account of Mark-to-Market basis.' The judgment of the High Court dated 20-2-2018 in Tax Appeal No. 1000 of 2017 has attained finality as a result of the dismissal of the Special Leave Petition by apex Court on 17-1-2020, Pr. CIT v. Suzlon Energy Ltd. (SLP (C) No. 1422 of 2019). Consequently, in view of the above position and since the Special Leave Petition against the judgment which had been relied upon had been dismissed by apex Court, the Special Leave Petition were dismissed on that ground. SLP(C) No. 21317/2019 & SLP(C) No. 17048/2019. There was no dispute about the factual position that the issue which was raised in these Special Leave Petitions was covered by the issue which was raised in the above Special Leave Petitions. Since the companion Special Leave Petition had been dismissed, there was no reason to entertain the Special Leave Petitions. The Special Leave Petitions were dismissed.

REFERRED :

FAVOUR : SLPs dismissed

A.Y. :



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