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TMI Blog2022 (3) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 vs. India Advantage Securities Ltd. [ 2015 (6) TMI 140 - BOMBAY HIGH COURT] to hold that the provisions of Section 14A read with Rule 8D will not be applicable to investment of shares and securities held as stock in trade. Nothing is placed to indicate, as to why this judgment of the Bombay High Court was not applicable to the facts in hand. No interest is disallowable under Rule 8D2(ii) as assessee has more interest free funds than the investments - ITAT has accepted that the assessee has demonstrated that the interest income earned during the relevant previous years far exceeds the interest expenditure. The ITAT has also relied upon a judgment of this Court in Commissioner of Income Tax 2, MumbaI vs. HDFC Bank Ltd. [ 2014 (8) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losing stock-in-trade without appreciating that the contracts by themself have not value per-se but only on account of differential the income or loss gets generated on the expiry date or settlement and 31.03.2008 being neither of these there is no value as on said date. (C) Whether on the facts and in the circumstances of the case and in law, the Hon ble ITAT was justified in holding mark-to-market loss on interest rate swaps as ascertained loss without appreciating that it is not the value that is pertinent and under question but the expiry date of the contract which results in crystalization and determination of loss. (D) Whether on the facts and in the circumstances of the case and in law, the Hon ble ITAT was justified in hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The first three questions (A to C) of law related to the valuation of mark-to-market loss as on 31st March, 2008. A Division Bench of this Court in Commissioner of Income Tax 16, Mumbai vs. D. Chetan Co. 2016 (75) taxmann.com 300 (Bombay)., has held that so long as it is not a case of speculative transaction and the loss incurred was of forward contract in the regular course of business, the loss incurred as forward contract should be allowed as business loss. 3. So far as the substantial question (D) proposed, the Tribunal has followed a judgment of this Court in Commissioner of Income Tax - 9 vs. India Advantage Securities Ltd. [2017] 79 taxmann.com 370 (Bombay)., to hold that the provisions of Section 14A read with Rule 8D w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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