Expenditure towards currency swap contract is allowable as deduction u/s 36(1)(iii)

Mitsubishi Electric Automotive Vs ACIT (ITAT Delhi) ITAT Delhi held that transactions relating to currency swap contracts cannot be considered to be in the nature of speculative transaction covered u/s. 43(5) of the Act. Accordingly, the same is allowable as deduction u/s. 36(1)(iii) of the Act. Facts- AO while examining the audited financial statement of the assessee, noticed that the assessee has debited expenditure of Rs.2,63,36,331 showing it as amortization of premium on derivative on long term borrowings. After calling for necessary details and examining them he found that the assessee h...