Exchange fluctuation loss on Business Advances Allowable

Sitae Re Pvt. Ltd. Vs ITO (ITAT Delhi) The issue under consideration is whether the exchange fluctuation loss on Business Advance on Balance Sheet considered as business loss by Appellant are allowable under Section 37(1) of Income Tax Act, 1961? the assessee company had claimed deduction on account of foreign fluctuation loss in its Profits & Loss A/c. The A.O.has disallowed this by considering the loss as notional loss. ITAT are of the considered view that loss suffered by the assessee on account of foreign exchange rate fluctuation as on date of balance sheet is an item of expenditure u...