- (1.) ON an application filed under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following questions for the opinion of the court : "Whether, on the facts and circumstances of the case, the Tribunal was correct in holding that the assessee was not entitled to claim the amount in question as deduction on account of difference in the exchange rate by devaluation on December 22, 1981, which was about two months after the close of the accounting year ?"
(2.) THE relevant assessment year is 1982-83. THE assessee claimed a loss of Rs. 1,05,329 on account of difference in the exchange rate in trade in rough emerald account. THE Income-tax Officer disallowed the claim of the assessee on the ground that the assessee is following the mercantile system of accounting and actually the payment has been made on December 22, 1981, which did not fall in the relevant accounting year and that the loss suffered on account of difference in the exchange rate also comes after the close of the accounting year. In appeal before the Appellate Assistant Commissioner, the Appellate Assistant Commissioner has also confirmed the view taken by the Income-tax Officer. THE Tribunal has also confirmed by the view taken by both the authorities below. While confirming the view taken by both the authorities below, the Tribunal has specifically found that the devaluation of the rupee took place on December 22, 1981, whereas the assessee's accounting year closed on Diwali, i.e., two months before that devaluation. Considering the submissions of learned counsel for the Revenue and material on record, no interference is called for in the view taken by the Tribunal. In the result we answer the question in the affirmative, i.e., in favour of the Revenue and against the assessee. The reference so made stands disposed of accordingly.;