https://www.taxtmi.com/caselaws?id=404511 The ITAT allowed the Assessee's appeal, directing the AO to delete the disallowed amount of forward contract premium expenses incurred to hedge foreign currency loans. The ITAT held that the premium payment to secure against foreign currency fluctuation losses was deductible under section 37(1) of the Income Tax Act, likening it to insurance policies for business assets. The decision emphasized the consistency in allowing such expenses and distinguished the precedent cited by the CIT (A), ultimately ruling in favor of the Assessee. en-us Mon, 04 Jan 2021 00:00:00 +0530 Thu, 25 Feb 2021 09:09:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404511 The ITAT allowed the Assessee's appeal, directing the AO to delete the disallowed amount of forward contract premium expenses incurred to hedge foreign currency loans. The ITAT held that the premium payment to secure against foreign currency fluctuation losses was deductible under section 37(1) of the Income Tax Act, likening it to insurance policies for business assets. The decision emphasized the consistency in allowing such expenses and distinguished the precedent cited by the CIT (A), ultimately ruling in favor of the Assessee. Case-Laws Income Tax Mon, 04 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404511