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2014 (8) TMI 1192 - ITAT MUMBAIAllowability of foreign exchange loss - CIT(A) held that the unrealized foreign exchange loss had resulted on capital account - as per assessee ECB borrowings are on general account of expansion of three existing industrial unit and hence, the ECB borrowings are not on capital account - HELD THAT:- As during the assessment year 2009-10, the assessee company has claimed foreign exchange loss which consist of loss of reinstatement of outstanding liability on account of ECB loans in foreign currency and the same has been accepted by the department. It is also pertinent to mention that during the previous AYs from 2001-02 to 2006-07, the department has accepted the gain offered by the assessee as income on account of similar foreign exchange fluctuation. When the facts are being, we do not find any justification on the part of the authorities below to disallow the loss claimed by the assessee during the year under consideration. AO is directed to verify the correct computation and allow the claim of the assessee accordingly. Appeal filed by the Assessee is treated as allowed.
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