Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 223 - AT - Income TaxDisallowance of notional loss - Held that:- Finding merit in the plea of assessee that in the statement showing details of loss in open position of F&O as on 31-3-2008 appearing in assessee's paper book the assessee has shown profit of Rs. 6342/- in one transaction and in remaining three transactions the assessee has shown loss of Rs. 1,77,002/- and after adjusting the profit of Rs. 6342/- the net loss of Rs. 1,70,660/- was claimed as a loss in open position of F&O. In Bank of Bahrain and Kuwait (2010 (8) TMI 578 - ITAT, MUMBAI) it has been held that that where a forward contract is entered into by the assessee to sell the foreign currency at an agreed price at a future date falling beyond the last date of accounting period, the loss is incurred to the assessee on account of evaluation of the contract on the last date of the accounting period, i.e., before the date of maturity of the forward contract is allowable. In the absence of any distinguishing feature brought on record by the Revenue the said loss claimed by the assessee is allowable and allow the ground taken by the assessee.
|