https://www.taxtmi.com/caselaws?id=424437 Foreign exchange loss on year-end restatement of foreign currency loans advanced to a foreign subsidiary for business purposes was treated as deductible business expenditure under section 37(1). The accounting revaluation of the outstanding loan, in line with the assessee's method of accounting, was not regarded as a capital loss merely because the loan remained unpaid at the balance sheet date. The objection that the loss was notional was not accepted, particularly where the corresponding foreign exchange gain in an earlier year had been recognised and the accounting treatment had not been disputed. The loss was therefore allowable as a deduction. en-us Tue, 28 Jun 2022 00:00:00 +0530 Thu, 30 Jun 2022 09:35:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424437 Foreign exchange loss on year-end restatement of foreign currency loans advanced to a foreign subsidiary for business purposes was treated as deductible business expenditure under section 37(1). The accounting revaluation of the outstanding loan, in line with the assessee's method of accounting, was not regarded as a capital loss merely because the loan remained unpaid at the balance sheet date. The objection that the loss was notional was not accepted, particularly where the corresponding foreign exchange gain in an earlier year had been recognised and the accounting treatment had not been disputed. The loss was therefore allowable as a deduction. Case-Laws Income Tax Tue, 28 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424437