TMI Blog2022 (4) TMI 1468X X X X Extracts X X X X X X X X Extracts X X X X ..... of IT(TP)A Nos.130 & 121/Bang/2014) - - - Dated:- 8-4-2022 - SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER For the Appellant : Shri A. Sharath Rao, A.R. For the Respondent : Shri T.N. Prakash, D.R. ORDER PER GEORGE GEORGE K., JUDICIAL MEMBER: The assessee has filed these miscellaneous applications submitting that there is a mistake apparent from record in the common order dated 22.12.2021 passed by the Tribunal against the appeals mentioned in the caption. 2. The mistake pointed out by the assessee relates to appeal No. IT(TP)A No.130/Bang/2014, being the appeal of the assessee. However, since a common order has been passed against the appeals filed by the assessee as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance of MTM losses. 5. It is the submission of the assessee in this petition that the main grounds urged in 5.1 to 5.7, which have not been adjudicated by the Tribunal, requires to be adjudicated. It is further submitted that the assessee is operating 5 STP Units, out of which only one unit is eligible for deduction u/s 10A of the Act. Hence the decision given in respect of alternative contention cited above will resolve the problem only in respect of one unit only, while the disallowance made in respect of remaining four units shall remain. Accordingly, it is submitted that disposal of alternative ground of the assessee would not benefit other four STP units. Accordingly, it is submitted that the ground Nos.5.1 to 5.7 urged by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gain/Loss USD 133,899,168.79 Mark to Market Loss on Forward and Options Contracts (684,273,980.27) Total 56,462,007.73 However, the A.O. has disallowed the loss arising on account of revaluation of forward contracts amounting to Rs.68.42 crores and assessed the gains arising on revaluation of outstanding export receivables. The Ld. A.R. submitted that all the forward contracts are related to export receivables only and hence the loss arising on mark to market loss on forward contract is also related to revenue account. The Ld A.R submitted that the AO has taken the view that the said loss arising on revaluation is a notional or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dinate bench in the case of M/s Quality Engineering and software Technologies P Ltd (supra) are relevant:- 4.5.11 As discussed earlier, in the case on hand, there has been an existing contract with a binding obligation accrued against the assessee when it entered into forex forward contracts. The forward contracts are in respect of consideration for export proceeds, which are revenue items. There is an actual contract for sale of merchandise. In this factual matrix, it is clear in our view that the transaction in question will not qualify to be called as speculative transaction. In view of the facts and circumstances of the case on hand, as discussed above, we hold that the provision on derivative contracts is allowable as expenditure. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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