Spanish company, advanced loan to its Indian Permanent Establishment in foreign currency for execution of project in India, which incurred foreign exchange fluctuation loss on account of differential value in INR, such fluctuation loss was allowable as deduction in hands of Indian Permanent Establishment.( AY.2014-15)
Cobra Instalaciones Y Servicios SA v. DCIT (2018) 65 ITR 714 / 172 ITD 18/ 171 DTR 198 / 195 TTJ 1038(Delhi) (Trib.)
S. 37(1) : Business expenditure – Foreign exchange fluctuation loss- Advance of loan to Indian Permanent Establishment – loss is allowable as deduction – DTAA- India -Spain [S.9(1)(i), art .7 ]