Deduction allowable on loss suffered by assessee on Foreign Exchange Fluctuation Loss

PCIT Vs United Spirits Ltd. (Karnataka High Court) Conclusion: Loss suffered by an assessee on account of foreign exchange difference as on the date of balance sheet was an item of expenditure under Section 37(1) as the view of AO and CIT (A) that the investments were made on, from the FNCR loans was not based on any supporting material and was only a presumption. Held: Assessee claimed towards the foreign exchange fluctuation loss. AO disallowed the same holding that assessee had not established the nexus for utilization of the funds raised in FNCR were used for the business purposes. AO held...