Dismissing the appeal of the revenue the Court held that , Fluctuation in rate of exchange in case of loans utilised for working capital of the business is held to be allowable expenditure .Relied CIT v. Woodward Governor India Pvt Ltd (2009) 312 ITR 254 (SC) (ITANo.806 of 2015 dt.26-02-2018)( AY. 2009-10)
PCIT v. Aloka Exports ( Bom)(HC) ( 2018) BCAJ -May. 62
S.28(i):Business loss-Fluctuation in rate of exchange in case of loans utilised for working capital of the business is held to be allowable expenditure [ S.37(1) ]