Held that the foreign exchange fluctuation was not on capital account. Hence the loss which arose on restatement of outstanding liabilities was on revenue items and was allowable as deduction. Accordingly, the order of the Commissioner (Appeals) was to be set aside and the Assessing Officer was directed to allow the loss arose on account of restatement of liabilities of revenue items. (AY.2002-03)
Herbalife International India Pvt. Ltd. v. Dy. CIT (2022) 100 ITR 456 (Bang.) (Trib)
S. 28(i) : Business loss-Fluctuation in foreign exchange-Restatement of outstanding liabilities on revenue items-Allowable as revenue expenditure. [S. 37(1)]