https://www.taxtmi.com/caselaws?id=780800 ITAT (Delhi - AT) allowed the taxpayer's appeal, holding that foreign exchange losses recognized under the mercantile system are admissible where year-end revaluation of outstanding foreign currency liabilities is consistently followed. The tribunal found an actual outstanding US$ liability and that exchange-rate variances recorded at the financial year end correctly reflect profit-and-loss impact, despite being unrealized. It set aside the revisional order denying the claim and held the assessee's method of accounting and resulting forex loss claim to be justified and allowable. en-us Mon, 22 Sep 2025 00:00:00 +0530 Wed, 05 Nov 2025 17:36:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=780800 ITAT (Delhi - AT) allowed the taxpayer's appeal, holding that foreign exchange losses recognized under the mercantile system are admissible where year-end revaluation of outstanding foreign currency liabilities is consistently followed. The tribunal found an actual outstanding US$ liability and that exchange-rate variances recorded at the financial year end correctly reflect profit-and-loss impact, despite being unrealized. It set aside the revisional order denying the claim and held the assessee's method of accounting and resulting forex loss claim to be justified and allowable. Case-Laws Income Tax Mon, 22 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=780800