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2014 (7) TMI 1155 - AT - Income TaxMark to Market’ loss - loss arising on valuation of forward exchange contracts on the closing date of accounting year - whether not a notional loss and therefore, allowable? - Held that:- 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. See ACIT vs. M/s. Rupam Impex [2013 (10) TMI 1364 - ITAT MUMBAI] - Decided in favour of the assessee.
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