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TMI BlogTreatment of loss due to foreign exchange fluctuationsX X X X Extracts X X X X X X X X Extracts X X X X ..... Treatment of loss due to foreign exchange fluctuations X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated in Income tax ?? Reply By Rama Krishana: The Reply: I am not an expert but wish you to put your views and understanding first so that the same may be discussed further. Reply By Sanjeev Sharma: The Reply: Perplexed at your comments. I find nothing in Income tax Act which applies to this situation. Sec 43A also does not apply to this, being indegenous machinery. I had a problem and tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is the reason for this query. If you know, I would appreciate your reply to the query. Reply By Rama Krishana: The Reply: I hope your issue would be solved with the help of Supreme Court decision reported in 2009 -TMI - 32906 - SUPREME COURT - in this case, supreme court has allowed the deduction on account of foreign exchange fluctuation. In this case, a detailed discussion on cost u/s 43A ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been made and reasoned decision has been delivered. Reply By Sanjeev Sharma: The Reply: You mean Woodworth case. That does not apply to this situation.It says loss on account of revenue a/c and on account of capital a/c. Loss on account of revenue a/c is allowed as an expense. We have loss on account of capital a/c. In 43A situation, it is capitalised. In non 43A situation, will it be entirel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y disallowed ?? X X X X Extracts X X X X X X X X Extracts X X X X
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