- (1.) The question of law which arises in this appeal, under Section 260A of the Income Tax Act, 1961 (hereafter "the Act") is: - "Whether the assessee's claim that there was a loss and/or it was a capital loss is legally tenable"
(2.) The order impugned in this case was made by the Income Tax Appellate Tribunal ("ITAT") on 19.04.1999, dismissing ITA 4486/Del/1998. The impugned order upheld the concurrent findings of the AO and the CIT (A) with respect to the amounts accruing, during the assessment year, to the assessee from bonds issued to it, by the Central Government, in lieu of the debt amounts payable to it for services under contract to the Iraqi Government.
(3.) The brief facts are that in the year 1983-84, the Government of Iraq expressed inability to pay the US Dollar Component to the assessee and other project exporters who had provided services under contract to it, under those contracts due to its involvement in war with Iran. Protocol Agreements were signed between the Union (Indian) Government and Government of Iraq. Banking arrangements were also worked out between Exim Bank of India and Central Bank of Iraq. In consideration of the appellant assigning debt receivables for the work done in US$ entered in the books of Central Bank of Iraq by executing Deed of Assignment dated 10.3.1995, the Central Government of India, pursuant to its notification dated 24.3.1995 issued Compensation Bonds-2001 governed by the provisions of the Public Debts Act, 1944 and the Public Debt Rules, 1945.;