Forex loss on year-end reinstatement of genuine business advances is deductible

Sitac Re Pvt. Ltd. Vs DCIT (ITAT Delhi) ITAT Delhi Allows Forex Loss on Business Advances: Disallowance of ₹23.71 Lakh Deleted In a noteworthy ruling, Delhi ITAT has given relief to Assessee by allowing the claim of foreign exchange fluctuation loss on year-end reinstatement of business advances. Tribunal set aside the findings of AO & CIT(A), who had disallowed the loss of ₹23.71 lakh Assessee had advanced a sum of ₹11.25 crore in the course of business. At the close of the financial year, the company revalued the outstanding advance in line with exchange rate movements & book...