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TMI Blog2021 (12) TMI 1400X X X X Extracts X X X X X X X X Extracts X X X X ..... /Kol/2014 for the assessment year 2008-09. The revenue has raised the following substantial questions of law for consideration. a. Whether on the facts and in the circumstances of the case the learned Income Tax Appellate Tribunal, "B" Bench, Kolkata has erred in law it allowing the assessee's claim for deduction of marketed-to-market loss of Rs.8,46,64,000/- in respect of unexpired/unmatured for forex derivative contracts on the balance sheet date in relation to previous year 2007-08 relevant to the assessment year 2008-09 ? b. Whether on the facts and in the circumstances of the case the learned Income Tax Appellate Tribunal, "B" Bench, Kolkata has erred in law as well as in facts in appreciating that the instruction of CBDT no.3/2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntending that if such loss is not allowable on accrual basis then the effect of such loss arisen in subsequent year on maturity of contract should be allowed. The CIT[A] by order dated 27.02.2014 allowed the alternate submissions made by the assessee. Aggrieved by the same, the assessee preferred appeal to the Tribunal. The assessee apart from placing materials from the paper book before the Tribunal placed reliance on the decision of the Hon'ble Supreme Court in the case of Commissioner of Income Tax vs. Woodward Governor India [P] Ltd. & Ors., [2007] 210 CTR [Del] 354 [SC]. The revenue resisted the plea raised by the assessee by contending that the Tribunal's circular issued by the CBDT in instruction no.3 of 2010 dated 23.03.2010 was iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y but it would not bind the Court more so when the law has been laid down by the Hon'ble Supreme Court as rightly pointed out by the Tribunal the facts are not in dispute and the revenue did not dispute that the loss is arising in respect of forward contract, which have been expired on the last day of the accounting year and it was also not disputed by the revenue that the assessee was following the mercantile system of accounting. Further, on perusal of the circular, we find that it is not a possible direction by the Board to the Assessing Officer rather Board under law cannot issue any such possible direction as the settled legal principle. The Assessing Officer is an independent authority and none can dictate him as to how and in what m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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