Loss on foreign currency derivative transaction and exchange rate difference allowed as expense

Vardhman Stampings P. Ltd. Vs PCIT-4 (ITAT Ahmedabad) ITAT Ahmedabad held that loss on foreign currency derivative transactions and loss on account of exchange rate difference are not speculative in nature and hence the same is allowable as business expense. Accordingly, order passed by Pr. CIT u/s. 263 directed to be quashed. Facts- The present appeal is filed against order passed by PCIT. It is pointed out that error noted by the Pr.CIT in the assessment order was with respect to the allowance of loss incurred by the assessee on foreign currency derivative transactions amounting to Rs.1,50,1...