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2018 (11) TMI 376 - AT - Income TaxMark to market loss - Allowance of foreign exchange fluctuation loss as notional - Held that:- Even though Board circular No. 3/2010 considered the ‘marked to market losses’ has notional. This issue was examined by the Coordinate Bench and Hon’ble Jurisdictional High Court in the case of VST Industries Ltd.[2013 (8) TMI 941 - ITAT HYDERABAD] has upheld the issue and distinguished that CBDT instruction No. 3/2010 would only apply to derivative transactions and not to transactions in the course of business. Since there is a finding that the loss incurred is not out of derivatives and was incurred in the course of the normal business on the transactions entered into by Assessee, we do not see any reason to interfere with the order of Ld. CIT(A). There is no merit in Revenue grounds and accordingly the same are rejected.
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