https://www.taxtmi.com/caselaws?id=435523 The Tribunal allowed the assessee's appeal, directing the deletion of additions made by the A.O. concerning foreign exchange losses on the ECB loan and losses on derivative contracts. The Tribunal determined that the foreign exchange loss was a trading loss, allowable as revenue expenditure under Section 37, and that the 'Marked to Market loss' on derivative contracts was not notional and thus allowable. The Tribunal's decision was based on precedents set in CIT vs. Woodward Governor India (P.) Ltd. and Cooper Corporation (P.) Ltd. vs. Dy. CIT, concluding that both losses were legitimate business expenditures. en-us Fri, 17 Feb 2023 00:00:00 +0530 Fri, 20 Dec 2024 10:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435523 The Tribunal allowed the assessee's appeal, directing the deletion of additions made by the A.O. concerning foreign exchange losses on the ECB loan and losses on derivative contracts. The Tribunal determined that the foreign exchange loss was a trading loss, allowable as revenue expenditure under Section 37, and that the 'Marked to Market loss' on derivative contracts was not notional and thus allowable. The Tribunal's decision was based on precedents set in CIT vs. Woodward Governor India (P.) Ltd. and Cooper Corporation (P.) Ltd. vs. Dy. CIT, concluding that both losses were legitimate business expenditures. Case-Laws Income Tax Fri, 17 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435523