DIPAK KUMAR SEN, J. - (1.) UNION Carbide India Ltd., the applicant, seeks a certificate from this Court that the judgment dt. 24th June, 1986, delivered in the above IT reference involves a substantial question of law and is a fit case for appeal to the Supreme Court.
(2.) THE question of law involved, said to be one of substance, is as follows: "Whether, on the facts and in the circumstances of the case, the Tribunal erred in holding that the excess payments of Rs. 6,34,484 and Rs. 42,284 made on account of fluctuations in the exchange rates of dollars, at the time of repayment of the dollar loan, raised from EXIM Bank and ICICI, respectively, for purchasing machinery from abroad was a capital expenditure and not an allowable revenue expenditure ?" The learned advocate for the applicant submitted that in the case of the same assessee, a certificate as prayed for here was granted by this Court in IT Reference No. 127 of 1977 entitled Union Carbide India Ltd. vs. CIT on 21st July, 1981, where the question involved was whether the additional expenditure incurred due to devaluation would be an allowable deduction in computing the business income of the assessee.
(3.) THE learned Advocate for the Revenue submitted that a special leave application filed before the Supreme Court from the judgment delivered by the Madras High Court in the case of CIT vs. South India Viscose Ltd. (1980) Tax LR 175 : (1979) 120 ITR 451 (Mad) : TC17R.682, where the same point was involved, was rejected by the Supreme Court on 2nd Aug., 1983, as reported in (1983) 143 ITR (St.) 60.;