Loss on revaluation of foreign exchange cannot be denied for mere failure to debit liabilities in books

DCIT Vs Creative Portico (I) (P) Ltd. (ITAT Mumbai) Assessee could not be debarred from claiming a foreign exchange loss as per Accounting Standard-11 as deduction only for the reason that it had failed to debit liabilities in its books of account. FULL TEXT OF THE ITAT MUMBAI JUDGMENT The appeal filed by the Revenue is directed against the order dated 1.12.2016 passed by the learned CIT(A)-12, Mumbai and it relates to A.Y. 2009- 10. 2. The Revenue is aggrieved by the decision of the learned CIT(A) in holding that loss of ` 489.66 lakhs arising on revaluation of foreign exchange outstanding as...