https://www.taxtmi.com/caselaws?id=161192 HC upheld the ITAT, ruling the taxpayer was entitled to deduct losses on forward contracts used to swap foreign currency borrowings into rupees in AY 1995-96. The court found the liability and corresponding expenditure crystallized on the date of the forward contract under accrual accounting, so the difference between the forward and spot rates was allowable in that year. While revenue expenditure is normally allowed in the year incurred, the court noted spreading requested by the taxpayer is permissible only where matching principles and continuing business benefit are satisfied. Decision for the assessee against the revenue. en-us Fri, 04 Sep 2009 00:00:00 +0530 Thu, 13 Nov 2025 11:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161192 HC upheld the ITAT, ruling the taxpayer was entitled to deduct losses on forward contracts used to swap foreign currency borrowings into rupees in AY 1995-96. The court found the liability and corresponding expenditure crystallized on the date of the forward contract under accrual accounting, so the difference between the forward and spot rates was allowable in that year. While revenue expenditure is normally allowed in the year incurred, the court noted spreading requested by the taxpayer is permissible only where matching principles and continuing business benefit are satisfied. Decision for the assessee against the revenue. Case-Laws Income Tax Fri, 04 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161192