https://www.taxtmi.com/caselaws?id=204664 ITAT, MUMBAI held that losses on forward foreign exchange contracts maturing after year-end are allowable when measured at the balance-sheet date, because a binding obligation accrues on entering the contract and the liability is crystallised when determinable with reasonable certainty. The tribunal accepted the assessee's consistent accounting treatment, applied AS-11 principles on multi-period exchange differences, and treated forward contracts as akin to stock-in-trade for timing of taxation. Consequently the assessee's claim was allowed; appeals by the revenue were partly allowed for statistical purposes. en-us Fri, 13 Aug 2010 00:00:00 +0530 Thu, 28 Aug 2025 11:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204664 ITAT, MUMBAI held that losses on forward foreign exchange contracts maturing after year-end are allowable when measured at the balance-sheet date, because a binding obligation accrues on entering the contract and the liability is crystallised when determinable with reasonable certainty. The tribunal accepted the assessee's consistent accounting treatment, applied AS-11 principles on multi-period exchange differences, and treated forward contracts as akin to stock-in-trade for timing of taxation. Consequently the assessee's claim was allowed; appeals by the revenue were partly allowed for statistical purposes. Case-Laws Income Tax Fri, 13 Aug 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204664