2016 (10) TMI 1110 - HC - Income Tax

Allowability of loss - Tribunal allowing the loss as business loss being related to forward contracts which are integral or incidental to the export of diamonds arising from cancellation of matured contracts - assessee does not deal in foreign exchange and is a diamond merchant - Held that - The issue arising herein stands concluded against the Revenue and in favour of the respondent assessee by the decision of this Court in Commissioner of Income Tax Vs. M/s. D. Chetan & Co. (2016 (10) TMI 629 - BOMBAY HIGH COURT ) held Tribunal was justified in deleting the addition of Mark to Market Loss made by the Assessing Officer on account of disallowance of loss on foreign exchange forward contract loss. - Decided in favour of assessee

Summary

The High Court of Bombay dismissed the appeal challenging the Income Tax Appellate Tribunal's order allowing a business loss related to forward contracts for the Assessment Year 2009-10. The court cited a previous decision in favor of the respondent assessee and concluded that no substantial question of law arose.