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2014 (4) TMI 1239 - AT - Income TaxDisallowing loss incurred on account of revaluing the outstanding forward contract entered with Banks - Losses on account of outstanding / open foreign exchange forward contracts - Business loss or Notional loss - HELD THAT:- The assessee has demonstrated that forward contract of foreign exchange were entered into by it in regard to its activity of import and export of diamonds. If such is the position then the issue will be covered in favour of the assessee by the aforementioned decisions which have been relied upon by AR. See ACIT CIRCLE–16(3), MUMBAI VERSUS M/S. S. RAJIV & CO. [2015 (5) TMI 38 - ITAT MUMBAI]. Accordingly, we hold that CIT(A) has erred in sustaining the disallowance and the addition sustained by him is deleted. The ground raised by the assessee is allowed.
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