https://www.taxtmi.com/caselaws?id=795935 Section 14A read with Rule 8D does not permit expenditure disallowance where no exempt income is earned or claimed during the relevant assessment year. Consequently, no related adjustment to book profit arises under the MAT provisions where the underlying disallowance does not survive, particularly where book profit is negative. Mark-to-market loss on foreign-currency swap contracts used to convert rupee borrowings and reduce interest costs is deductible when consistently recognised under Accounting Standard-11 and matched by taxation of corresponding gains. Such exchange-fluctuation loss represents an accrued, subsisting liability rather than a contingent or hypothetical loss. en-us Thu, 16 Jul 2026 00:00:00 +0530 Wed, 29 Jul 2026 08:21:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795935 Section 14A read with Rule 8D does not permit expenditure disallowance where no exempt income is earned or claimed during the relevant assessment year. Consequently, no related adjustment to book profit arises under the MAT provisions where the underlying disallowance does not survive, particularly where book profit is negative. Mark-to-market loss on foreign-currency swap contracts used to convert rupee borrowings and reduce interest costs is deductible when consistently recognised under Accounting Standard-11 and matched by taxation of corresponding gains. Such exchange-fluctuation loss represents an accrued, subsisting liability rather than a contingent or hypothetical loss. Case-Laws Income Tax Thu, 16 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795935