Investment Allowance Available On Exchange Rate Fluctuation: Bombay High Court

The Bombay High Court addressed the eligibility of investment allowance under Section 32A of the Income Tax Act, concerning exchange rate fluctuations. It ruled that the fluctuation must be an actual loss or gain, not merely notional, to claim the allowance. The court emphasized the need for a direct nexus between the fluctuation and the investment to qualify for the allowance, ensuring strict adherence to statutory provisions and accounting standards.