2014 (12) TMI 1226

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....e with the help of the learned D.R. 4. Before us the learned D.R. submitted that the assessee had entered into forward contracts. At the end of the financial year the assessee valued the same and claimed loss of Rs. 5,40,82,510/- as business loss. The AO did not allow the same despite the assessee relying upon the binding judgements of Woodward Governor India (P) Ltd. and Bank of Bahrain and Ku....

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....sactions in foreign exchange were carried out during the normal course of the appellant's business and the restatement of the forward contract obligations was done as per AS-11 in a consistent manner over the years. In fact the gain earned on such revaluation was offered to tax and accepted by the AO in the respective years and there is no reason to arrive at a different conclusion at present mere....

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....t's regular business or whether it is tainted with a colour of speculative transaction. At present, it is not the AO's case that the impugned transaction is speculative in nature. Further, the aforesaid issue of allowing the loss on account of revaluation of pending forward contracts was considered by the Hon'ble ITAT Mumbai bench in the case of M/s Bhavani Gems Vs ACIT CC-35 in ITA No. 2855/M....