Disallowance of foreign exchange loss on buyer’s credit- ITAT remanded matter back to AO

K. Uttamlal And Company Vs ACIT (ITAT Mumbai) Introduction: The case of K. Uttamlal & Company vs ACIT (ITAT Mumbai) revolves around the disallowance of foreign exchange loss concerning buyer’s credit. The primary issue is the treatment of foreign exchange loss on the buyer’s credit payable by the assessee. Detailed Analysis: The assessee contends that the foreign exchange loss has occurred on the amount payable as buyer’s credit, restated at the exchange rate as of 31/03/2012, after setting off gains following AS-11. The buyer’s credit, related to the import of item...