2017 (2) TMI 1243 - HC - Income Tax

Allowability of loss - Tribunal allowing the loss as business loss being related to forward contracts which are integral or incidental to the export of diamonds arising from cancellation of matured contracts - Held that - The issue arising herein stands concluded against the Revenue and in favour of the respondent assessee by the decision of this Court in Commissioner of Income Tax Vs. M/s. D. Chetan & Co. (2016 (10) TMI 629 - BOMBAY HIGH COURT ) held Tribunal was justified in deleting the addition of Mark to Market Loss made by the Assessing Officer on account of disallowance of loss on foreign exchange forward contract loss. - Decided in favour of assessee

Summary

The Bombay High Court dismissed the Revenue's appeal challenging the Income Tax Appellate Tribunal's order related to the Assessment year 2009-10. The Tribunal was justified in allowing the loss of Rs. 7,49,70,430 as business loss related to Forward Contracts in the export of diamonds. The issue raised was concluded against the Revenue based on previous court decisions. The appeal was dismissed with no order as to costs.