Held loss suffered by the assessee on account of foreign exchange difference as of the date of the balance sheet is allowable as a deduction. Provision for stock on an ad hoc basis and contingent in nature, not allowable as a deduction. Accounting method followed continuously for a given period of time needs to be presumed to be correct till AO comes to conclusion for reasons to be given that said system does not reflect true and correct profits (AY. 2010-11, 2012-13, 2014-15)
Venture Lighting India Ltd. v. ACIT (2022) 195 ITD 109 / (2023) 102 ITR 354 (Chennai)(Trib.)
S. 37(1) : Business expenditure-Foreign exchange difference-As on the date of the balance sheet-Allowable as a deduction-Provision for the stock-Ad-hoc basis-Contingent-Not allowable as a deduction-System of accounting-Followed continuously-Presumed to be correct. [S. 145]