9911796707
TMI Blog2014 (12) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... ; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0cm; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee had entered into forward contracts. At the end of the financial year the assessee valued the same and claimed loss of Rs. 5,40,82,510/- as business loss. The AO did not allow the same despite the assessee relying upon the binding judgements of Woodward Governor India (P) Ltd. and Bank of Bahrain and Kuwait [ITA No. 4404 & 1883/Mum/2004 (SB)]. However the CIT(A) granted relief. The con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business and the restatement of the forward contract obligations was done as per AS-11 in a consistent manner over the years. In fact the gain earned on such revaluation was offered to tax and accepted by the AO in the respective years and there is no reason to arrive at a different conclusion at present merely because there is a loss during the year. Apparently, the AO was of the view that the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present, it is not the AO's case that the impugned transaction is speculative in nature. Further, the aforesaid issue of allowing the loss on account of revaluation of pending forward contracts was considered by the Hon'ble ITAT Mumbai bench in the case of M/s Bhavani Gems Vs ACIT CC-35 in ITA No. 2855/Mum/2010 dated 30/3/2011 in AY 2006-07 and the said loss was allowed as business loss and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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