9911796707
TMI Blog2015 (10) TMI 2770X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Bank of Bahrain and Kuwait, [ 2010 (8) TMI 578 - ITAT, MUMBAI] which have been elaborately dealt by the CIT(A) while reaching to the conclusion that mark to market loss on account of foreign contract done to hedge the risk of exchange fluctuations is allowable as business loss and which has been determined as per accounting method regularly followed by the assessee. Accordingly, we do not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed assessee s claim after observing as under :- 5.2 I have considered the submissions of the appellant and the order of the AO. The transactions of the appellant are for the purpose of hedging only. The appellant has been following the same system of accounting for the last several years and the department had accepted the same. 5.3 Similar issue has been considered by Special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to meet the liability, and only consequential effect of the same is to be determined, then, it cannot be said that it is in the nature of contingent liability. It was further stated that in case of loss/expense, it is the concept of reasonable certainty to meet an existing obligation which comes into play which in legal terminology is said to be 'crystallization of liability'. When ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accounting method of the appellant for last several years, the mark to market losses on account of foreign exchange forward contracts done to hedge the risk of exchange fluctuations is allowed. The AO is directed to delete the addition and the ground of appeal of the appellant is allowed. 3. We have considered rival contentions and found from the record that forward contracts were hedge ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
