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2013 (7) TMI 255 - AT - Income TaxMark-to-market loss claim on revaluation of the pending forward contract on the closing day - assessee is a partnership firm engaged in the business of manufacturing, trading as well as import and export of diamonds - Held that:- As decided in Bank of Bahrain & Kuwait (2010 (8) TMI 578 - ITAT, MUMBAI) concluded that a liability is said to have crystallized when a pending obligation on the balance sheet date is determinable with reasonable certainty. As per AS-II when the transaction is not settled in the same accounting period as that in which it occurred, the exchange difference arises over more than one accounting period. In view of the decision of the Supreme Court in the case of Woodward Governor India (I) P. Ltd. [2009 (4) TMI 4 - SUPREME COURT] the Appellant's claim is allowable. Thus the assessee in the said case was holding foreign currency as stock-in-trade, the distinction so made by the A.O. was irrelevant and immaterial as rightly pointed out by the CIT(A) relying on the decision of ONGC (2010 (3) TMI 81 - SUPREME COURT) wherein a similar issue was decided in favour of the assessee despite the fact that ONGC was not a dealer in foreign exchange. Also see DCIT vs. Banque Indosuez (Known as Credit Agricole Indosuez) reported [2012 (12) TMI 730 - ITAT MUMBAI] & Societe Generale vs. DDIT (International Taxation) (2013 (5) TMI 374 - ITAT MUMBAI). In favour of assessee.
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