IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.418 OF 2009 INCOME TAX APPEAL NO.418 OF 2009 INCOME TAX APPEAL NO.418 OF 2009 Commissioner of Income Tax ..Appellant. V/s. M/s.Tacke Wind Energy India P.Ltd. ..Respondent. Mr.Suresh Kumar for appellant. Ms.A.Vissanjee with S.J.Mehta for respondent. CORAM : V.C.DAGA AND CORAM : V.C.DAGA AND CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ. DATED : 21ST APRIL, 2009. DATED : 21ST APRIL, 2009. DATED : 21ST APRIL, 2009. P.C. :- P.C. :- P.C. :- 1. Heard learned for the appellant and the respondent. The appeal seeks to raise the following substantial questions of law :- a) Whether the foreign exchange losses suffered by the assessee on the revenue account on account of fluctuation in foreign exchange on the last date of the accounting year ending March 31, 2001 (i.e. the assessment year in question) being a contingent notional liability was allowable, as deduction under the Income Tax Act ? b) Whether the foreign exchange losses arisen on account of revaluation of the foreign exchange borrowings utilized on revenue account was not allowable as deduction under the Income Tax Act as repayments of these borrowings fell after the accounting year under consideration and, therefore, liability for such losses did not arise in the accounting year under consideration ? c) Whether on the facts and circumstances of the case and in law, the ITAT was justified in ignoring the - = : 2 : = - fact that method of accounting as per AS 11 is not the deciding factor for allowability or otherwise of a deduction claimed and also that for accrual of liability, it is necessary that the assessee is obliged to discharge the same ? d) Whether on the facts and circumstances of the case and in law, the ITAT was justified in upholding the order of CIT(A) in allowing foreign exchange fluctuation loss ignoring the fact that the loss was notional as a result of restatement of liabilities and not actual loss qualifying for deduction as expenditure ? 2. All the issues raised in this appeal relates to the question of foreign exchange loss suffered by the assessee on revenue account of fluctuation in foreign exchange on the last date of the accounting year ending 31st March, 2001. The issues raised herein is squarely covered by the Apex Court judgment in the case of Commissioner of Income Commissioner of Income Commissioner of Income Tax, Delhi V/s. M/s.Woodward Governor India P.Ltd. Tax, Delhi V/s. M/s.Woodward Governor India P.Ltd. Tax, Delhi V/s. M/s.Woodward Governor India P.Ltd. in Civil Appeal No.2206 of 2009 in Civil Appeal No.2206 of 2009 in Civil Appeal No.2206 of 2009 along with other matters decided on 8th April, 2009. In this view of the matter, no substantial question of law arise in this appeal. Appeal is dismissed in limini with no order as to costs. (V.C.DAGA, J.) (V.C.DAGA, J.) (V.C.DAGA, J.) (J.P.DEVADHAR, J.) (J.P.DEVADHAR, J.) (J.P.DEVADHAR, J.) - = : 3 : = -