Foreign exchange loss allowed as revenue expense: ITAT Mumbai

Macrotech Developers Limited (MDL) Vs DCIT (ITAT Mumbai) ITAT Mumbai held that consulting charges is revenue item and accordingly, foreign exchange loss arising thereon is allowable as revenue expenditure. Accordingly, appeal of revenue dismissed. Facts- During assessment, the assessing officer noted that assessee has made a provision of doubtful debts against the advances made to various parties. The assessing officer doubted advances of Rs. 1.83 crore though the assessee has made provision of 3.13 crore. CIT(A) allowed relief to the assessee on appreciating the fact that assessee has claimed...