Premium on forward exchange contract deductible as revenue expenditure

CLP Wind Farm (India) Ltd. Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad held that as per Accounting Standard 11 premium on forward exchange contracts is to be amortized as expense means writing it off as revenue expenditure in the profit and loss account. Facts- The assessee carried on the business of generation of power and during the impugned year it had claimed expenses amounting to Rs. 38,96,97,000/-on account of forward cover premium. The same were incurred on account of forward contracts for foreign exchange entered into by the assessee company to mitigate any foreign currency exposure arisin...