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2019 (1) TMI 1909 - BOMBAY HIGH COURT'Mark to Market' loss arising on valuation of forward exchange contracts on the closing date of accounting year - HELD THAT:- The issue is squarely covered against the department by virtue of the judgment of this Court in the case of CIT Vs. M/s. D. Chetan & Co. [2016 (10) TMI 629 - BOMBAY HIGH COURT] we find that there was no submission recorded on behalf of the Revenue that the Respondent assessee should be called upon to explain the nature of its transactions. Thus, the submission now being made is without any foundation as the stand of the assessee on facts was never disputed - On present facts, it was never the Revenue's contention that the transaction was speculative but only disallowed on the ground that it was notional - thus as held that forward contract in foreign exchange when incidental to carrying on business of cotton exporter and done to cover up losses on account of differences in foreign exchange valuations, would not be speculative activity but a business activity. - Decided against revenue.
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