IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO. 63 OF 2008 THE COMMISSIONER OF INCOME TAX ... Appellant Versus M/S. SESA KEMBLA COKE CO.LTD., ... Respondent Mr. S. R. Rivonkar, Advocate for the appellant. Mr. V. Frank, Advocate for the respondent. Coram:- S.A. BOBDE & R. C. CHAVAN, JJ. Date:- 30th June, 2008 P.C. The only point argued on behalf of the appellant is that the Income-Tax Appellate Tribunal (ITAT) committed a mistake in treating the loss incurred by the Assessee on account of fluctuation in the rate of foreign exchange as a trading loss. Admittedly, the Assessee had showed the amount of loss which it had suffered on account of fluctuation of rate of exchange as a trading loss. However, the Assessing Officer had added the said amount to the closing stock in trade. Against the order of the Assessing Officer adding the loss on account of fluctuation in rate of foreign exchange to the value of the closing stock, the Assessee preferred an appeal before the Commissioner. The Commissioner reversed the order of the Assessing Officer and held that the loss on account of fluctuation in the rate of foreign exchange was a trading loss, since the foreign exchange was used for the purpose of trading. In view of the decision of the Supreme Court in Sutlej Cotton Mills Ltd. vs. Commissioner of Income-Tax, reported in [1979] 116 ITR 0001, the Commissioner held that the Assessing Officer could not have added the amount of loss suffered by the Assessee to the stock in trade at the end of the year and that too without showing it as an opening stock in the next year. 2. The appeal filed by the Revenue before the ITAT has been dismissed. The ITAT has observed that the effect of fluctuation in the rate of foreign exchange is different from the value of the corresponding stock and that any increase in the liability on account of foreign exchange rate fluctuation need not be reflected in the value of the corresponding stock. We are in agreement with the observations of the ITAT. Admittedly, the loss on account of fluctuation in the rate of foreign exchange was shown as a revenue loss by the Assessee and there was no reason to hold that it ought to have been reflected in the value of the corresponding stock. There is also nothing wrong in the Assessee having treated it as a revenue loss, having regard to the Judgment of the Supreme Court in Sutlej Cotton Mills Ltd. vs. Commissioner of Income-Tax (supra). 3. The appeal is dismissed. S.A. BOBDE, J. R. C. CHAVAN, J. ssm.