Silicon Graphics Systems (India) Pvt. Ltd vs. DCIT (ITAT Delhi)

S. 37(1): Foreign exchange fluctuation loss arising consequent to restatement of current liabilities as per the year end rates in accordance with Accounting Standard-11 (AS-11) is allowable as a deduction

The accounting standard-11 provides that at each balance sheet date the outstanding foreign currency monetary items should be reported using the closing rates. It clarifies that that when the transaction is not settled in the same accounting period in which it had occurred then in all the intervening period till the transaction is settled, the exchange differences have to be duly accounted for

Silicon Graphics Systems (India) Pvt. Ltd vs. DCIT (ITAT Delhi)

 

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