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TMI Blog2017 (2) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim of the assessee was allowed in A.Y. 2009-10 by him and hence the assessee would be eligible for set off brought forward loss. Accordingly, he directed the Assessing Officer to grant consequential relief to the assessee. The Revenue is aggrieved by the said decision the learned CIT(A). We have heard the parties and perused the record. In the preceding paragraph, we have upheld the decision rendered by the learned CIT(A) in A.Y. 2009-10 and hence direction given by the learned CIT(A) in A.Y. 2010-11 to the Assessing Officer to grant consequential relief to the assessee does not call for any interference. - I.T.A. No. 4185/Mum/2014, I.T.A. No. 4186/Mum/2014, C.O. No. 207/Mum/2015, C.O. No. 208/Mum/2015 - - - Dated:- 8-2-2017 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y only in respect of outstanding debtors, creditors or other usual items of assets/liabilities available in the Balance sheet. He further took the view that ultimate economic benefit arising in the case of forward contracts in foreign exchange is contingent upon occurrence or otherwise of several events and hence loss claimed by the assessee is a notional loss. Accordingly, he disallowed the claim of ` 5.03 crores referred above. The learned CIT(A) however allowed the claim of the assessee and hence the Revenue has filed this appeal before us. 4. Learned Departmental Representative submitted that the impugned forward contracts are not hedging contracts as prescribed in section 43(5)(c) of the Act and hence the impugned loss should be tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o protect its assets whenever exports are made. He also submitted that the assessee has revalued all assets and liabilities having foreign currency exposure as at the year end and such revaluation has resulted in loss during the year under consideration. He further submitted that this loss would be offset when the foreign exchange liability/asset/forward contracts are ultimately settled. He submitted that the revaluation has resulted in gains in the succeeding years. Learned AR further submitted that the assessee has revalued assets as per the Accounting Standard 11 issued by ICAI and also decisions rendered in various cases wherein it has been held that mark to market loss on account of revaluation of foreign exchange liability/asset is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red above. Under these set of facts, we are of the view that the Ld CIT(A) was justified in holding that mark to market loss on account of revaluation of foreign currency forward contract outstanding as on 31.3.2009 cannot be considered as a Notional Loss and hence allowable as deduction while computing income under the head business. Accordingly, we uphold the order passed by the learned CIT(A) on this issue. 9. We shall now take up the appeal filed by the Revenue for A.Y. 2010-11. 10. In the assessment relating to A.Y. 2010-11, the assessee claimed that the loss brought forward from A.Y. 2009-10 should be set off against income relating to A.Y. 2010-11. The Assessing Officer noticed that the loss claimed by the assessee on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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