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2021 (1) TMI 578 - ITAT CHENNAILoss on account of FC revaluation which was a marked to market (MTM) loss - Addition as such loss as a notional loss and contingent in nature - CIT (A), relying on the CBDT instruction dated 23.03.2010, held that the MTM losses on account of foreign derivatives were a difference between the purchase price and the value as on the valuation date, which is a notional loss and therefore, not an allowable expenditure and thus upheld the disallowance - HELD THAT:- In this case, the pending forward contracts were restated on the basis of foreign exchange rate as on 31.03.2013. There is no dispute on the details furnished by the assessee. The losses are booked by the assessee in compliance of mandatory accounting standard AS-11 from AY 2011-12 onwards and it admitted the corresponding profits as income in the respective year. Since, the facts of this case are similar to the case decided in EMMSONS INTERNATIONAL LTD.[2019 (10) TMI 761 - ITAT DELHI] following it, we hold that the addition is unsustainable. We, accordingly direct the AO to delete the same. - Decided in favour of assessee.
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