In an appeal preferred by the Revenue, the Hon’ble Bombay High Court had to decide on questions relating to the allowability of foreign exchange losses towards loans taken at the touchstone of section 43A of the Act. However, the Hon’ble Court observed that the foreign exchange losses must also be considered at the touchstone of section 37(1) of the Act, upon which there was no deliberation by the Tribunal. The controversy dealt with by the Tribunal was about the scope of section 43A but it was also important for the Tribunal to have examined whether the expenditure would qualify as revenue expenditure for purposes of section 37(1) of the Act and whether it can be stated conclusively that such expenditure cannot be regarded as capital expenditure. In absence of analysis from the Tribunal, the matter was accordingly remanded back to the Tribunal for effective adjudication on this issue. (AY. 2009-10)