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TMI Blog2014 (8) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal by the assessee is preferred against the order of the Ld. CIT(A)-9, Mumbai dt. 27.02.2013 pertaining to assessment year 2009-10. 2. The assessee has raised two substantive grounds of appeal. Ground No. 1 relates to the disallowance of Rs. 2,28,01,707/- being marked to market losses on account of exchange rate fluctuation and ground No. 2 relates to the disallowance of expenditure of Rs. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of marked to market loss. The AO was of the opinion that the same has to be disallowed as per Instruction No. 3 of 2010 dt. 23.3.2010. 3.2. The assessee was show caused to explain why the exchange rate fluctuation loss should not be treated as speculation loss. The assessee explained the difference between forward contracts and option contracts. The AO did not accept the detailed submission of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of CIT Vs Woodward Governor India Pvt. Ltd. 312 ITR 254. 6. The Ld. Departmental Representative fairly conceded to this. 7. We find force in the contention of the Ld. Counsel. The Hon'ble Supreme Court in the case of Woodward Governor India (Supra) has held that loss suffered by the assessee on account of fluctuation in the rate of foreign exchange as on the date of the balance sheet is an i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supported the findings of the lower authorities. 10. We have carefully perused the orders of the authorities below. We find force in the contention of the Ld. Counsel. The AO has not referred to the balance sheet figures of the assessee. The AO has also not given any findings whether the borrowed funds were also used for making the investments. The AO has also not considered the claim of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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