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Liability due to Exchange Fluctuation


Last updated: 11 August 2008

Court :

Brief :
The assessee obtained orders from foreign buyers with advance payment to be adjusted against supplies to be made. The assessee had to supply in future more quantities than what was originally agreed due to rupee devaluation. The assessee treated this excess quantity to be supplied as a trading loss.

Citation :

The court applying the Sutlej Cotton Mills Ltd (116 ITR 1) case declined the claim of the assessee.
 
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