https://www.taxtmi.com/highlights?id=96725 Deductibility of compensation paid for exchange rate loss was tested by analysing the contract and commercial expediency; the High Court found a contractual compensation clause and accepted genuineness of the payment, concluding the expenditure falls within business expenditure principles and should be allowed. The Tribunal's reversal based solely on absence of an express agreement clause was rejected, and the CIT(A)'s allowance on commercial expediency was restored, resulting in relief to the assessee on the tax disallowance. en-us Mon, 09 Feb 2026 10:05:42 +0530 Mon, 09 Feb 2026 10:05:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=96725 Deductibility of compensation paid for exchange rate loss was tested by analysing the contract and commercial expediency; the High Court found a contractual compensation clause and accepted genuineness of the payment, concluding the expenditure falls within business expenditure principles and should be allowed. The Tribunal's reversal based solely on absence of an express agreement clause was rejected, and the CIT(A)'s allowance on commercial expediency was restored, resulting in relief to the assessee on the tax disallowance. Highlights Income Tax Mon, 09 Feb 2026 10:05:42 +0530 https://www.taxtmi.com/highlights?id=96725