Foreign Exchange Fluctuation Loss arising out of Re-Statement of ECB Allowed

 Pharmabase India P. Ltd. V DCIT (ITAT Mumbai)

The issue under consideration is whether CIT(A) was justified in confirming the disallowance of foreign exchange fluctuation loss arising out of re-statement of External Commercial Borrowings (ECB) at the year end rates in accordance with Accounting Standard – 11 (AS-11)?

ITAT states that, there is no reason for the AO to take a divergent stand during the year under consideration by disallowing the foreign exchange loss, wh

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