Foreign exchange fluctuation loss on forward contract could not be considered as a notional loss

CIT Vs The Paper Products Ltd. (Bombay High Court) Loss claimed by the Assessee on account of fluctuation in the rate of foreign exchange as on the date of the balance­ sheet was allowance and the Assessee was entitled adjustment of actual cost of imported assets. The loss due to foreign exchange fluctuation in foreign currency transactions in derivatives has to be considered on the last date of account year and it is deductible under Section 37(1) of the Act. FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT 1 The Appeal pertains to the Assessment year 2008-­09. Mr.Kotangale, the learned coun...