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2020 (11) TMI 731 - AT - Income TaxDisallowance being the amount of exchange fluctuation loss provided at the year end on business advance received in foreign exchange - HELD THAT:- The Hon’ble Delhi High Court in the case of Taiko Chander Nagar Chemicals P.Ltd.[2007 (10) TMI 282 - DELHI HIGH COURT] has held that exchange fluctuation loss in respect of business advances received in the course of business on account of reinstatement of outstanding balance at the year end is allowable as business loss. Also see OIL & NATURAL GAS CORPORATION LTD. VERSUS COMMISSIONER OF INCOME TAX [2010 (3) TMI 81 - SUPREME COURT] and M/S WOODWARD GOVERNOR INDIA P. LTD. & M/S HONDA SIEL POWER PRODUCTS LTD. [2009 (4) TMI 4 - SUPREME COURT] Applying the said principle to the facts and circumstances of the case, we hold that the exchange fluctuation loss arising on account of the revaluation of business advances on the close of the year by the assessee is allowable as deduction in the hands of the assessee. Appeal of the assessee is allowed.
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