https://www.taxtmi.com/caselaws?id=151896 ITAT allowed the assessee's claim for deduction of foreign-exchange losses on loans on an accrual basis under the mercantile system, rejecting the AO's view that such losses were contingent or notional. The tribunal noted consistent accounting treatment since AY 1982-83, acceptance of corresponding gains in other years, and conformity with ICAI AS-2 requiring restatement of long-term liabilities when conversion yields a net loss. Absent any evidence of tax-avoidance, the assessee's method was held valid and the appeal was allowed. en-us Thu, 01 Aug 2002 00:00:00 +0530 Tue, 30 Sep 2025 15:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151896 ITAT allowed the assessee's claim for deduction of foreign-exchange losses on loans on an accrual basis under the mercantile system, rejecting the AO's view that such losses were contingent or notional. The tribunal noted consistent accounting treatment since AY 1982-83, acceptance of corresponding gains in other years, and conformity with ICAI AS-2 requiring restatement of long-term liabilities when conversion yields a net loss. Absent any evidence of tax-avoidance, the assessee's method was held valid and the appeal was allowed. Case-Laws Income Tax Thu, 01 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151896