https://www.taxtmi.com/caselaws?id=194034 The Tribunal held that the mark to mark loss on the valuation of a forward exchange contract was allowable as a business loss, not a notional loss. The decision was based on the transaction being part of the assessee's regular business activities to hedge against foreign exchange rate variations impacting import and export operations. The Tribunal's ruling aligned with the precedent set by the jurisdictional High Court, which considered similar transactions as business activities rather than speculative. The Revenue's failure to challenge the business nature of the transactions during assessment and the reliance on Accounting Standard-11 were noted. The Tribunal dismissed the Revenue's appeal, affirming the decision that the loss was a revenue loss connected to business activities. en-us Tue, 31 Jan 2017 00:00:00 +0530 Sat, 26 Aug 2017 10:20:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=194034 The Tribunal held that the mark to mark loss on the valuation of a forward exchange contract was allowable as a business loss, not a notional loss. The decision was based on the transaction being part of the assessee's regular business activities to hedge against foreign exchange rate variations impacting import and export operations. The Tribunal's ruling aligned with the precedent set by the jurisdictional High Court, which considered similar transactions as business activities rather than speculative. The Revenue's failure to challenge the business nature of the transactions during assessment and the reliance on Accounting Standard-11 were noted. The Tribunal dismissed the Revenue's appeal, affirming the decision that the loss was a revenue loss connected to business activities. Case-Laws Income Tax Tue, 31 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=194034