https://www.taxtmi.com/caselaws?id=460383 The ITAT Chennai allowed the assessee's claim for foreign exchange loss on external commercial borrowing (ECB) used for domestic asset purchases, holding it revenue in nature following Wipro Finance Ltd SC precedent. The tribunal distinguished that since loan proceeds financed domestic fixed assets rather than foreign purchases, exchange fluctuation losses were revenue expenses. However, the tribunal dismissed the assessee's challenge to section 14A disallowance relating to exempt income expenses, noting insufficient submissions regarding Rule 8D application. The appeal was partly allowed. en-us Tue, 27 Sep 2022 00:00:00 +0530 Tue, 21 Jan 2025 19:07:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460383 The ITAT Chennai allowed the assessee's claim for foreign exchange loss on external commercial borrowing (ECB) used for domestic asset purchases, holding it revenue in nature following Wipro Finance Ltd SC precedent. The tribunal distinguished that since loan proceeds financed domestic fixed assets rather than foreign purchases, exchange fluctuation losses were revenue expenses. However, the tribunal dismissed the assessee's challenge to section 14A disallowance relating to exempt income expenses, noting insufficient submissions regarding Rule 8D application. The appeal was partly allowed. Case-Laws Income Tax Tue, 27 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460383