The assessee has claimed foreign fluctuation loss as business loss. The Assessing Officer rejected assessee’s claim on ground that assessee failed to substantiate same by bringing relevant material on record. Tribunal remanded the matter.As regards the claim of bad debt,even if deduction of advances written off by assessee during relevant year was not allowable as bad debt, same would not ipso facto jeopardize assessee’s claim for deduction of same as business loss. Matter remanded. (AY. 2013-14)
Futura Polyster Ltd. v. ITO (2020) 184 ITD 158 /( 2021) 213 TTJ 625 (Mum.)(Trib.)
S. 28(i) : Business loss-Foreign exchange fluctuation loss-Matter remanded-Bad debt-Advances written off was not allowable as bad debt, same would not ipso facto jeopardize assessee’s claim for deduction of same as business loss-Matter remanded. [S.36(1)(vii), 36(2), 37(1)]