https://www.taxtmi.com/caselaws?id=259732 The case involved a dispute regarding the treatment of mark-to-market losses on forward contract agreements for a business engaged in import and export of diamonds. The Revenue contended that such losses were notional and not allowable, while the CIT(A) held that they were allowable business losses. The appellate court upheld the CIT(A)'s decision, emphasizing that the forward contracts were integral to the business, had underlying assets, and were entered into to mitigate foreign exchange risks. The court cited relevant accounting standards and previous judicial decisions supporting the allowance of such losses. Consequently, the Revenue's appeals were dismissed. en-us Fri, 27 Mar 2015 00:00:00 +0530 Wed, 20 May 2015 07:56:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=259732 The case involved a dispute regarding the treatment of mark-to-market losses on forward contract agreements for a business engaged in import and export of diamonds. The Revenue contended that such losses were notional and not allowable, while the CIT(A) held that they were allowable business losses. The appellate court upheld the CIT(A)'s decision, emphasizing that the forward contracts were integral to the business, had underlying assets, and were entered into to mitigate foreign exchange risks. The court cited relevant accounting standards and previous judicial decisions supporting the allowance of such losses. Consequently, the Revenue's appeals were dismissed. Case-Laws Income Tax Fri, 27 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=259732