TMI Blog2014 (12) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... clusion in this year merely because there is a loss. He accordingly correctly directed the AO to allow the impugned claim of the assessee. - Decided against revenue - ITA No. 6065/Mum/2012 - - - Dated:- 2-12-2014 - <!--[if gte mso 9]> <![endif]--> <!--[if gte mso 9]> Normal 0 false false false EN-IN X-NONE <![endif]--><!--[if gte mso 9]> ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge contracts on the closing date of the accounting year. 3. None appeared on behalf of the assessee despite posting of the case for three times. Considering the covered nature of the issue we proceeds to adjudicate the same with the help of the learned D.R. 4. Before us the learned D.R. submitted that the assessee had entered into forward contracts. At the end of the financial year the assessee valued the same and claimed loss of ₹ 5,40,82,510/- as business loss. The AO did not allow the same despite the assessee relying upon the binding judgements of Woodward Governor India (P) Ltd. and Bank of Bahrain and Kuwait [ITA No. 4404 1883/Mum/2004 (SB)]. However the CIT(A) granted relief. The contentions of para 6 of his order are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and the loss was held allowable in similar circumstances, where the business of ONGC is not that of a foreign exchange dealer. Further, it is not the nature of business or the stock dealt with i.e., currency or commodities or goods like diamonds in the present case that matters. What matters is whether the forward contract transaction was entered during the course of appellant s regular business or whether it is tainted with a colour of speculative transaction. At present, it is not the AO s case that the impugned transaction is speculative in nature. Further, the aforesaid issue of allowing the loss on account of revaluation of pending forward contracts was considered by the Hon'ble ITAT Mumbai bench in the case of M/s Bhavani Gems V ..... X X X X Extracts X X X X X X X X Extracts X X X X
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