TMI Blog2021 (1) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... rice and the value as on the valuation date, which is a notional loss and therefore, not an allowable expenditure and thus upheld the disallowance - HELD THAT:- In this case, the pending forward contracts were restated on the basis of foreign exchange rate as on 31.03.2013. There is no dispute on the details furnished by the assessee. The losses are booked by the assessee in compliance of mandator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A)-2 dated 06.09.2018 for the assessment year 2013-14. 2. M/s. M.L. Exports, the assessee, a firm engaged in the business of tobacco trading and exports, incurred losses on Foreign Currency (FC) utilization, FC cancellation FC revaluation in the return filed for the AY 2013-14. In the assessment made, the AO allowed all the losses except the loss on account of FC revaluation which was a mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has been consistently following this method of accounting and admitted the profits on revaluation of FCs from AYs 2011-12 onwards. The lower authorities are not justified in treating the loss as notional one and not allowing it. The Ld. AR placed reliance on the decision reported in CIT Vs. Woodward Governor India Pvt. Ltd., 312 ITR 254 SC and the Tribunal decision in the case of Emmsons Interna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the addition is unsustainable. We, accordingly, direct the Assessing Officer to delete the same. Per contra, the Ld. DR supported the order of the lower authorities. 4. We heard the rival submissions and gone through the relevant material. In this case, the pending forward contracts were restated on the basis of foreign exchange rate as on 31.03.2013. There is no dispute on the detail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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