The assessee claimed a foreign exchange fluctuation loss arising on the reinstatement of assets and liabilities as on the balance sheet date. Assessing Officer treated it as a notional loss and disallowed the deduction. Allowability of foreign exchange fluctuation loss computed on the basis of the exchange rate prevailing on the balance sheet date was settled by the Supreme Court in CIT v. Woodward Governor India (P.) Ltd.(2009) 312 ITR 254 (SC). Such loss was not merely notional and was allowable as business expenditure. Accordingly, the disallowance was rightly deleted. (AY. 2012-13, 2014-15, 2015-16)\u00a0\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1): Business expenditure-Foreign exchange fluctuation loss -Mark-to-market loss -Reinstatement of assets and liabilities -Allowable as a deduction. [S.28(1)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62507","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ggb","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62507"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62507\/revisions"}],"predecessor-version":[{"id":62508,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62507\/revisions\/62508"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}