Held that any loss or gain which arose from the interest rate swap arrangement was in the revenue field since the underlying transaction for such an arrangement was the interest payable on the loan which was a revenue item. Therefore, deletion the disallowance of loss on “interest rate hedging contract” is correct. (AY 2012-13)
Dy.CIT v. Sisecam Flat Glass India Ltd. (2021) 87 ITR 1 (SN) (Kol.)(Trib.)
S. 37 (1) : Business expenditure-Interest rate hedging contract-Underlying transaction was interest payable on loan-loss or gain from interest rate swap arrangement is allowable as revenue expenditure.