TMI Blog2011 (1) TMI 1453X X X X Extracts X X X X X X X X Extracts X X X X ..... E R Per J. Sudhakar Reddy, A.M. : This is an appeal filed by the Revenue directed against the order of the CIT(Appeals)-10, Mumbai dated 24-12-2009 on the following grounds : 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that the claim of loss on valuation of unmatured forward exchange contract is an allowable deduction without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar as ground No.1 is concerned, the issue is covered in favour of the assessee by the decision of the Special Bench of the Tribunal in the case of Bank of Bahrain and Kuwait vs. DCIT 132 TTJ 505 wherein at para 59, it held as follows: 59. We accordingly, hold that where a forward contract is entered into by the assessee to sell the foreign currency at an agreed price at a future date fallin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pectfully following the aforesaid decisions, we dismiss ground No. 2 of the Revenue. 5. The cross objection filed by the assessee is on the following grounds : 1(a) Without prejudice to the respondent s contention that the loss on revaluation of unmatured Forward Foreign Exchange Contracts as at 31st March, 1998 ought to be allowed, the respondents submit that in the event the loss of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the AO be suitably directed in this regard. 2. The respondents submit that CIT(A) ought to have directed the AO to grant credit for tax deducted at source (TDS) of ₹ 4,872 (Rs.3,448,392 - ₹ 3,443,520). The respondents pray that the AO be suitably directed in the matter. 3. The CIT(A) ought to have held that the respondents have suffered loss of revenue on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with law. The AO shall keep in mind the decisions of the Hon ble Supreme Court in the case of Sandvik Asia Ltd. vs. CIT 280 ITR 643 (SC) and in the case of CIT vs. H.E.G. Ltd. 324 ITR 331 (SC). Thus, ground No. 3 is allowed for statistical purposes. 9. In the result, the Revenue s appeal is dismissed and the assessee s cross objection is allowed for statistical purposes. Order pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
