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2016 (9) TMI 1332 - ITAT DELHIAdjustment made by the TPO on account of AMP expenses incurred by the assessee - Held that:- Both the parties agreed that in view of the decision of Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communications Vs. CIT (2015 (3) TMI 580 - DELHI HIGH COURT) the matter needs to be restored back to the file of ld. AO/TPO for de novo consideration. Disallowance of market to market loss of restatement of assets and liabilities as on balance sheet date - Held that:- Accounting Standard 11 states that all unpaid monetary liabilities should be restated at closing value as on the balance sheet date. Any exchange gain or loss arising thereon is considered as an income or an expenditure as the case might be Thereafter ld. DRP considered the CBDT Instruction relied upon by AO and observed that MTM loss claimed by the tax payer was on actual monetary items appearing in the balance-sheet due to their reinstatement and not on forex derivatives. The department has not brought any material to controvert these factual aspects noted by ld. DRP. We, therefore, sustain the order of ld. CIT(A) following the decision of Hon’ble Supreme Court in the case of Woodward Governor India P. Ltd. (2009 (4) TMI 4 - SUPREME COURT) wherein it has been held that the loss incurred by the assessee on the date of balance-sheet is an allowable loss u/s 37(1).
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