Loss accrued to HCL on account of Foreign Currency Fluctuation can be claimed as Business Loss: Delhi HC
The Delhi High Court ruled that the loss accrued to HCL on account of the foreign currency fluctuation can be claimed as a business loss. The revenue has challenged that whether in the facts and circumstances of the case and in law, ITAT erred in deleting the disallowance of unrealized foreign exchange loss on account of reinstatement of assets and liabilities of Rs.15,97,25,873 ignoring...
The Delhi High Court ruled that the loss accrued to HCL on account of the foreign currency fluctuation can be claimed as a business loss.
The revenue has challenged that whether in the facts and circumstances of the case and in law, ITAT erred in deleting the disallowance of unrealized foreign exchange loss on account of reinstatement of assets and liabilities of Rs.15,97,25,873 ignoring the fact that this is a notional loss and not allowable to be set off against the taxable income in view of the CBDT’s instruction no. 3 of 2010 dated March 23, 2010.
Insofar as the question of law,is concerned, as would be evident upon a perusal of the question of law suggested by the revenue, it appears to be the revenue’s contention that the disallowance of loss on account foreign fluctuation should not have been deleted by the Tribunal in view of CBDT’s instruction no. 3 of 2010, dated March 23, 2010.
“The revenue, having not laid an edifice concerning the purported non-fulfilment of any of the conditions, stipulated by the Supreme Court in Woodward Governor India P. Ltd. (supra), cannot, for the first time, without even taking a ground in the instant appeal, argue before us that the loss which accrued to the assessee on account of the foreign currency fluctuation cannot be claimed by it as a business loss,” the division bench of Justices Rajiv Shakdher and Talwant Singh said.
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