Amount paid to authorized dealer for protection from foreign exchange rate fluctuation is revenue expenditure

Brief of the Case

Calcutta High Court held In the case of CIT vs. M/s Britannia Industries Ltd. that bank charges claimed by the assessee are not relatable to the fixed assets. Bank charges are payable in consideration of the risk undertaken by the bank. Therefore, it is in the nature of a fee for the guarantee provided by the banker. So, the consideration paid by the assessee to the authorized dealer of foreign exchange, in order to obtain protection from fluctuation of foreign exchange rates is revenu

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