Allowance of exchange fluctuation loss on ECB loan availed by the assessee for the acquisition of indigenous assets by CIT(A)

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Last updated: 06 January 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT), Chennai Bench, has ruled that exchange fluctuation losses incurred on an External Commercial Borrowing (ECB) loan are allowable. This decision pertains to a company that used the loan to acquire indigenous assets. The Tribunal's order clarifies that such losses can be claimed as a deduction for tax purposes.

Court :
ITAT Chennai

Brief :
These two appeals filed by the Revenue are directed against common order of the learned CIT(Appeals)-5, Chennai dated31.10.2019 and pertain to assessment years 2012-13 and 2013-14.Since, the facts are identical and issues are common, for the sake of convenience, they were heard together and disposed of by way of this consolidated order.

Citation :
ITA 35/CHNY/2020

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1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)

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