Allowability of forex loss on restatement of loans/advances

This query is : Resolved

Siva Kumar.V (Querist)
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17 November 2008 Whether forex loss on restatement of loans/advances can be allowed as deduction for AY 2006-07. Please quote relevant case laws.

Thanks in advance

Jitender

Jitender (Expert)
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17 November 2008 it is not allowed
it is allowed on payament basis. refer sec 43A.

Sanjay

Sanjay (Expert)
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17 November 2008 Yet it is allowable if it is on revenue account. Pl. see Mumbai Tribunal decision in ONGC case. 43A is not relevant in this case as the section gets attracted only whether the exchange fluctuation arises on account of a capital asset

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