Loss claimed on a/c of fluctuation in Rate of Foreign Exchange allowable as expenditure u/s 37(1)
Loss claimed by assessee on account of fluctuation in rate of foreign exchange as on date of balance sheet is allowable as expenditure u/s 37(1).
The decision in the case of CIT v. Woodward Governor India Pvt. Ltd. to the effect that “the loss suffered by the assessee, maintaining accounts regularly on mercantile system and following accounting standards prescribed by the ICAI, on account of fluctuation in the rate of foreign exchange was an item of expenditure under section 37(1).
Source www.forum4finance.com
CAclubindia
