12 June 2009
whether foreien exchage adjusted (on f.c. out standing of long term loan for purchase of fixed assets )to the cost of fixed assets be allowed under I.T.Act?
13 June 2009
If the foreign exchange element relates to cost of fixed asset and other expenses normally capitalised as per the applicable Accounting Standard issued by the ICAI it is acceptable Interest on FC Term Loan is also a genuine business expense for which copies of the relevant documents will have to be submitted to the Assessing Officer.
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