https://www.taxtmi.com/caselaws?id=775595 The ITAT Cochin upheld the disallowance of the loss claimed on cancellation of a forward contract related to foreign exchange fluctuations. The loss was incurred in connection with advancing funds to a wholly owned subsidiary for acquiring a foreign company. The tribunal held that since the expenditure was directly linked to acquisition and creation of a capital asset, it constituted capital expenditure and not deductible revenue expenditure. The loss was therefore disallowed as a business expense. The appeal by the assessee was dismissed. en-us Tue, 03 Jun 2025 00:00:00 +0530 Mon, 28 Jul 2025 08:27:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775595 The ITAT Cochin upheld the disallowance of the loss claimed on cancellation of a forward contract related to foreign exchange fluctuations. The loss was incurred in connection with advancing funds to a wholly owned subsidiary for acquiring a foreign company. The tribunal held that since the expenditure was directly linked to acquisition and creation of a capital asset, it constituted capital expenditure and not deductible revenue expenditure. The loss was therefore disallowed as a business expense. The appeal by the assessee was dismissed. Case-Laws Income Tax Tue, 03 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775595