Loss suffered in foreign exchange due to fluctuation in foreign exchange liabilities is allowable as Income Tax Act

Last updated: 25 April 2012

Court :
Income Tax Appeallate Tribunal

Brief :
The fact and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs.17,34,716/- made by the A.O. on account of foreign exchange loss claimed by the assessee without any supporting evidences. and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition without appreciating the facts that the loss is only notional loss and not actually incurred by the assessee as well as it is not backed by any actual transactions”.

Citation :
Asstt. Commr. of Income-tax-8(1),R.No.210, 2nd floor, Aaykar Bhavan,M.K. Road, Mumbai-400 020.Appellant Vs.M/s. Afcons Pauling (India) Ltd.,Afcons House,16, Shah Industrial Estate,Veera Desai Road, Azad Nagar,Andheri (E), Mumbai-400 053.PAN: AAACA9592N.Respondent