Foreign exchange fluctuation loss on ECB loan for acquisition of indigenous assets allowable

DCIT Vs Green Star Fertilizers Ltd. (ITAT Chennai) The issue of disallowance of expenditure on account of foreign exchange fluctuation loss incurred for acquisition of domestic asset is revenue in nature deductible u/s.37(1) or not has been considered by the co­ordinate Bench of this Tribunal in the case of M/s.Hyundai Motor Company Ltd. Vs. DCIT (supra), where the Tribunal considering ratio laid down by the Supreme Court in the cases of CIT vs. Tata Iron & Steel Co.Ltd. (supra) and CIT vs. Woodward Governor India P.Ltd. (supra) held that in absence of applicability of section 43A and in ...