Foreign Exchange Loss Allowed as Not Notional Under Mercantile Accounting

ACIT Vs Lurgi Indian International Services Private Limited (ITAT Delhi) The Income Tax Appellate Tribunal Delhi dismissed the Revenue’s appeal for Assessment Year 2018–19 and upheld the order of the Commissioner of Income Tax (Appeals) [CIT(A)] deleting the disallowance of foreign exchange fluctuation loss and allowing the carry forward of business losses. The appeal arose from an assessment where the Assessing Officer (AO) had disallowed foreign exchange loss of ₹2.89 crore as notional and unrealised, and had also denied carry forward of losses for AYs 2014–15 and 2015–16 by invoki...