Assessee while claiming foreign exchange fluctuation loss had as per the AO in AY 2009-10 commenced business and was also substantiated as per the Commissioner (In Appeals) for AY 2010-11, Thus the department having accepted the previous decisions was not justified when the AO for AY 2011-12 held that the assessee had not started any business either during the year or prior to the year. Hence, the assessee had already set up the business. (ITA Nos. 6546/DEL/2015, AY. 2011-12)
Dy. CIT v. Albasta Wholesale Services Ltd (2019) 70 ITR 504 (Delhi)(Trib.)
S. 37(1) : Business expenditure—Foreign exchange fluctuation loss—department accepting that assessee had commenced its business in earlier year—Denial of claim on reason that no business commenced for instant year not justified.