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2011 (5) TMI 244 - AT - Income TaxDisallowed - Loss incurred by the assessee on account of fluctuation in the foreign exchange rates - The Hon'ble Supreme Court in the case of Radha Swami Satsand vs. ITO reported in [1991 -TMI - 5353 - SUPREME Court], held that loss suffered by the assessee on account of exchange rate fluctuation is allowable expenditure - The assessee may not be able to produce evidence of the utilisation of the capital before the AO but from the orders of the AO in earlier years and in subsequent years impliedly, it is ascertainable that it is used for the working capital which is in a revenue account - As per the case law and past history of the dispute on this issue, allow this ground of appeal and delete the disallowance - Decided in favour of assessee.
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