Tag Archives: Foreign exchange loss

Foreign Exchange Loss is allowable expense under Section 37(1): SC

Section 37(1), read with section 145, of the Income-tax Act, 1961  Subject : Allowability of Business expenditure  Assessment year: 1998-99  Whether expression ‘expenditure’ as used in section 37 may, in circumstances of a particular case, cover an amount which is really a ‘loss’, even though said amount has not gone out from pocket of assessee ?… Read More »

Foreign exchange loss is not Speculative Loss if

When will  Foreign exchange loss in forward contract is not speculative Loss and is allowed as Business Loss ? Foreign exchange loss incurred by assessee on account of entering into forward contracts with banks for purpose of hedging loss in connection with its import/export business has to be regarded as business loss subject to condition that… Read More »