Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1598 - AT - Income TaxWeighted deduction u/s 35(2AB) - Held that:- We find that the certificate is issued by the prescribed authority i.e. the Secretary to the Govt. of India, Ministry of Science & Technology, Department of Scientific Research and Industrial Research (DSIR), New Delhi. The prescribed authority has approved the expenses claimed by the assessee u/s 35(2AB) of the Act. However, only for the limited purpose of verifying the authenticity of the said documents so produced by the assessee, this issue is set aside to the file of the AO. Ground No.2 is thus treated as allowed for statistical purposes. Disallowance of derivate loss - whether the loss claimed by assessee is only a notional loss and such notional liability would be contingent in nature which is not allowable under any of the provisions of the Act? - Held that:- The loss which is incurred on account of forward contract to sell currency at an agreed price at a future date falling beyond the last date of accounting period is a loss incurred by the assessee on account of the valuation of the contract on the last date of the accounting period and before the date of the maturity of the forward contract and hence is not a contingent liability but an accrued liability and is allowable as an expenditure. We find that the facts of the case before us are similar to the facts of the case before the Special Bench in the case of Bank of Bahrain and Kuwait (2010 (8) TMI 578 - ITAT, MUMBAI).
|