HC explains principles for allowability of Foreign Currency Fluctuation loss

Pr. CIT Vs HCLl Comnet Systems & Services Ltd (Delhi High Court) What is important is that in the AY 2009-2010, on account of fluctuation in the currency, the gain, which accrued to the assessee, was, concededly, offered to tax. As a matter of fact, the judgment of the Karnataka High Court relied upon by Mr. Singh uses this indicia almost as a litmus test to ascertain as to whether conditions stipulated in Woodward Governor India P. Ltd. (supra) stand fulfilled. For the sake of convenience, the relevant observations made by the Karnataka High Court in Wipro Finance Ltd. (supra) are extract...