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 obs

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