9911796707
TMI Blog2014 (8) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... le-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%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 01/09/2009 declaring loss of Rs. 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 claimed mark to market losses amounting to Rs. 32,95,500/-. The assessee was asked to justify its claim. After considering the reply filed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee 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 of fluctuation in foreign exchange. The assessee was entering into forward contract to hedge itself. Forward contract in foreign exchange are booked in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [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 Rs. 32,99,550/- as business loss. Appeal filed by the assessee is accordingly allowed.
6. In the result, appeal filed by the assessee is allowed.
Order pronounced in the open court on 06/08/2014 X X X X Extracts X X X X X X X X Extracts X X X X
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