TMI Blog2014 (8) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... export of diamonds substantial portion of its transaction are denominated in US dollars and accordingly current assets and liabilities are also denominated in US dollars to hedge itself against risk out of fluctuation in foreign exchange. The assessee was entering into forward contract to hedge itself. Forward contract in foreign exchange are booked in the assessee’s regular course of business, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lse false EN-IN X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be allowed as expenditure. 3. The assessee is in the business of manufacturing, importing and exporting of diamonds. The return was filed on 01/09/2009 declaring loss of ₹ 1.30 crores. The return was selected for scrutiny assessment; the statutory notices were issued and served upon the assessee. During the course of scrutiny assessment proceedings, the AO noticed that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in the favour of the revenue. 6. We have carefully perused the order of the authorities below. Facts emerging out of the assessment record show that assessee is in the business of import and export of diamonds substantial portion of its transaction are denominated in US dollars and accordingly current assets and liabilities are also denominated in US dollars to hedge itself against risk out o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 294 ITR 451 and is squarely covered in favour of the assessee by the decision of Special Bench of the Tribunal in the case of Bank of Behrain and Kuwait [2010] 5 ITR (Trib.) 301 (Mumbai)(SB). Considering all these judicial decisions and facts of the case, we set aside the findings of the ld. CIT(A) and direct the AO to allow the loss of ₹ 32,99,550/- as business loss. Appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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