Loss due to fluctuation in foreign exchange liabilities allowable

The assessee debited an amount of Rs. 17,34,716/- being foreign exchange loss that arose due to re-statement of current liabilities. The liability had arisen in the earlier years due to consultancy services rendered by Alfred Mcalphine, UK. The assessee contended that the loss arising due to fluctuation in foreign exchange liabilities, when such liabilities are re-instated as on 31st March, is ascertained liability and not contingent liability. The AO rejected the contention of the assessee. The CIT(A) followed the judgment of Hon’ble Supreme Court in the case of CIT vs. Woodward Governor In...