https://www.taxtmi.com/caselaws?id=767231 Foreign exchange fluctuation loss on closing balances in EEFC accounts was treated as a real revenue loss, not a notional or capital loss, because the balances represented export proceeds used in the ordinary course of business and retained the character of circulating capital. Restatement at year-end exchange rates, when consistently recognised under the regular method of accounting, was accepted as reflecting a monetary trading item. Applying the settled principle that exchange gains or losses on trading assets or circulating capital are revenue in nature, the loss was allowable as a business deduction under section 37(1) and the disallowance was deleted. en-us Tue, 25 Feb 2025 00:00:00 +0530 Wed, 12 Mar 2025 09:07:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767231 Foreign exchange fluctuation loss on closing balances in EEFC accounts was treated as a real revenue loss, not a notional or capital loss, because the balances represented export proceeds used in the ordinary course of business and retained the character of circulating capital. Restatement at year-end exchange rates, when consistently recognised under the regular method of accounting, was accepted as reflecting a monetary trading item. Applying the settled principle that exchange gains or losses on trading assets or circulating capital are revenue in nature, the loss was allowable as a business deduction under section 37(1) and the disallowance was deleted. Case-Laws Income Tax Tue, 25 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767231