https://www.taxtmi.com/caselaws?id=358133 The ITAT dismissed the department's appeal and upheld the decision of the Ld. CIT(A) to delete the addition of notional foreign exchange loss as a deduction. The ITAT ruled that the increase in liability due to foreign exchange fluctuation was allowable as a deduction as the liability accrued when the contract was entered into, and the fluctuation was factual, not notional. This decision aligns with the precedent set by the Delhi High Court, affirming that foreign exchange fluctuation losses are deductible based on the prevailing exchange rate at the end of the financial year. en-us Tue, 30 Jan 2018 00:00:00 +0530 Fri, 06 Apr 2018 07:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=358133 The ITAT dismissed the department's appeal and upheld the decision of the Ld. CIT(A) to delete the addition of notional foreign exchange loss as a deduction. The ITAT ruled that the increase in liability due to foreign exchange fluctuation was allowable as a deduction as the liability accrued when the contract was entered into, and the fluctuation was factual, not notional. This decision aligns with the precedent set by the Delhi High Court, affirming that foreign exchange fluctuation losses are deductible based on the prevailing exchange rate at the end of the financial year. Case-Laws Income Tax Tue, 30 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=358133