Foreign exchange forward contract loss: settled precedent barred any substantial question of law, leaving the assessee's position intact.

Prior decisions of the Bombay High Court had already settled the treatment of loss on foreign exchange forward contracts in favour of the assessee on the identical question. Because the issue was covered by that binding precedent, the proposed challenge did not raise any substantial question of law under Section 260-A of the Income-tax Act, 1961. The issue was therefore answered in favour of the assessee and against the Revenue, and the appeal point was not entertained.

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Issues: Whether the Tribunal was right in deleting the disallowance of loss on foreign exchange forward contracts and whether the appeal raised any substantial question of law.

Analysis: The issue stood concluded against the Revenue and in favour of the assessee by prior decisions of the same Court on the identical question. In view of that settled position, the proposed question did not give rise to any substantial question of law under Section 260-A of the Income-tax Act, 1961.

Conclusion: The issue was answered in favour of the assessee and against the Revenue, and the proposed question was not entertained.

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