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2014 (2) TMI 1030 - AT - Income TaxDisallowance of foreign exchange loss Held that:- The assessee has taken FCNR (B) loan from banks on 27.01.2000 and the same was utilized for repayment of 15% Unsecured Redeemable Non-Convertible Debentures of Rs.10 crores - The amount was an actual expenditure incurred by the assessee for the purchase of forward contracts for repayment of FCNR (B) loan thus, it was not a notional or contingent but actual expenditure - by taking FCNR (B) loan, the assessee has not acquired any fixed asset in foreign currency either in earlier years or in the current years - The provisions of section 43A of the Act could not apply to the facts of the case as the provisions can be invoked only when assets are acquired by raising the FCNR (B) loan by taking the payment in foreign currency on acquisition of capital assets on account of these borrowings Relying upon Radhasoami Satsang vs CIT [1991 (11) TMI 2 - SUPREME Court] the amount has been utilized for repayment of debentures - The purpose of loan was to swap the costlier loan with the cheaper loan - similar expenditure has been allowed in the preceding and succeeding years Decided against Revenue.
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