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TMI Blog2020 (2) TMI 1649X X X X Extracts X X X X X X X X Extracts X X X X ..... action carried out by the assessee in the instant case. This is a simple case of loan given by the assessee to its foreign subsidiary in the earlier years and at the time of re-statement of the said loans in earlier years at the exchange rate prevailing at the end of the year, it had resulted in exchange gain which has been duly offered to tax by the assessee voluntarily and assessed as such by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss and is squarely allowable as deduction. Accordingly, the grounds raised by the assessee are allowed. - ITA No. 2503/Chny/2018 - - - Dated:- 28-2-2020 - SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER For the Appellant : Shri R. Viswanathan, C.A For the Respondent : Mrs. Vijayaprabha, JCIT ORDER PER M. BALAGANESH, ACCOUNTANT MEMBER: T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan to its foreign subsidiary company in the year 2013 and the said loan was received back during the year under consideration. Pursuing to the same, the assessee incurred foreign exchange fluctuation loss. The assessee in A.Y 2014-15 earned exchange gain in respect of the same transaction and had offered the same to tax. The Ld. A.O in the scrutiny assessment proceedings completed u/s. 143(3) d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 23.03.2010 held that the said exchange fluctuation loss is capital in nature and also contingent expenditure. With this observation, he upheld the action of the Ld. AO. We find that the Revenue had not understood the transaction carried out by the assessee in the instant case. This is a simple case of loan given by the assessee to its foreign subsidiary in the earlier years and at the time of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Woodward Governor India (P.) Ltd. reported in [2009] 312 ITR 254(SC) and respectfully following the same, we hold that the exchange fluctuation loss incurred by the assessee during the year under consideration is a regular revenue loss and is squarely allowable as deduction. Accordingly, the grounds raised by the assessee are allowed. 4. In the result, the appeal of the assessee is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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