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

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