Forex Fluctuation Loss in Trading Not a Non-Operating Loss: Delhi HC

PCIT-7 Vs Samsung India Electronics Pvt. Ltd. (Delhi High Court)

In the case of PCIT-7 Vs Samsung India Electronics Pvt. Ltd., the Delhi High Court addressed the issue of foreign exchange fluctuation losses and their treatment in tax assessments. The court upheld the decision of the Income Tax Appellate Tribunal (ITAT) that foreign exchange loss related to trading items should be considered part of the operating revenue/cost, not as a non-operating loss. This was based on the principle that forex losses directly resulting from trading activities cannot be classified as non

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