2013 (12) TMI 1530

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..... of Woodward Governor India Pvt. Ltd.[2009 (4) TMI 4 - SUPREME COURT ] wherein held loss suffered as on the date of balance sheet is an item of expenditure u/s 37(1) Not only the exchange loss on outstanding forward contracts is considered but also exchange gain on outstanding forward contracts is also considered. Hence it is clear that assessee company follows the accounting policies as per A .....

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..... in deleting the disallowance of ₹ 20,88,885/- on account of unrealized foreign exchange loss ignoring the fact that the said loss is neither on actual loss nor an accrued loss and hence not an allowable loss under the provisions of Income-tax Act. 3. The assessee is engaged in manufacturing of garments. For the year under consideration assessee claimed deduction in respect of loss in ex .....

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..... s clear that assessee company follows the accounting policies as per AS-11 prescribed by the Institute of Chartered Accountants of India (ICAI). This accounting policy has been consistently followed irrespective of whether it is gain or loss and hence needs to be accepted and the disallowance deleted. 3.2. I have considered the submissions of the Ld. Counsel and the decision of the Hon'ble .....

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