Foreign Exchange Loss Allowable as Liability Recognised Under Mercantile Accounting: ITAT Delhi

ACIT Vs Lurgi IndianInternational Services Private Limited (ITAT Delhi) The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) dismissed the Revenue’s appeal for Assessment Year 2018–19, thereby upholding the order of the Commissioner of Income Tax (Appeals) [CIT(A)]. The dispute involved two principal issues: the allowability of foreign exchange fluctuation loss claimed as a business deduction under section 37 of the Income-tax Act, 1961, and the eligibility of the assessee to carry forward business losses in light of section 79 of the Act. The assessee, engaged in engineering consul...