https://www.taxtmi.com/caselaws?id=386348 Foreign exchange fluctuation loss on year-end restatement of external commercial borrowing used for business purposes was held allowable as revenue expenditure. The restatement complied with mandatory Accounting Standard 11, the loss had consistently been recognised in earlier years and accepted by the revenue, and the fluctuation did not alter the cost of fixed assets. Section 43A was found inapplicable because the assets were purchased in India. The Tribunal applied the principle of consistency and treated the loss as a real liability, not a notional item, so the disallowance was unsustainable. en-us Wed, 07 Aug 2019 00:00:00 +0530 Fri, 08 Nov 2024 12:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=386348 Foreign exchange fluctuation loss on year-end restatement of external commercial borrowing used for business purposes was held allowable as revenue expenditure. The restatement complied with mandatory Accounting Standard 11, the loss had consistently been recognised in earlier years and accepted by the revenue, and the fluctuation did not alter the cost of fixed assets. Section 43A was found inapplicable because the assets were purchased in India. The Tribunal applied the principle of consistency and treated the loss as a real liability, not a notional item, so the disallowance was unsustainable. Case-Laws Income Tax Wed, 07 Aug 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=386348