Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 1364 - AT - Income TaxMarket to market loss arising on valuation of forward exchange contracts on the closing date of accounting year - Hedl that:- Hon'ble Supreme Court in case of ONGC vs. CIT (2010 (3) TMI 81 - SUPREME COURT ), following the earlier decision in the case of CIT vs. Woodward Governor India (P.) Ltd. (2009 (4) TMI 4 - SUPREME COURT ), have held that the Assessee having maintained account on mercantile system of accounting, loss claimed by the Assessee on account fluctuation in the rate of foreign exchange as on the date of balance sheet in respect of loans taken for Revenue purpose is allowable as expenditure u/s. 37(1) notwithstanding the fact that liability has not been actually discharged in the year in which the fluctuation rate of foreign exchange is accrued. Therefore, we find no infirmity in the order passed by the ld. CIT(A) holding that Market to market loss of ₹ 1,06,47,416/- arising on valuation of forward exchange contracts on the closing date of accounting year is not a notional loss and, therefore, allowable - Decided in favour of assessee
|