2011 (1) TMI 1453

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.... by : Ms. Bahroze Kamdin. O R D E R Per J. Sudhakar Reddy, A.M. : This is an appeal filed by the Revenue directed against the order of the CIT(Appeals)-10, Mumbai dated 24-12-2009 on the following grounds : 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that the claim of loss on valuation of unmatured forward exchange contract is an allowable d....

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.... As far as ground No.1 is concerned, the issue is covered in favour of the assessee by the decision of the Special Bench of the Tribunal in the case of Bank of Bahrain and Kuwait vs. DCIT 132 TTJ 505 wherein at para 59, it held as follows: "59. We accordingly, hold that where a forward contract is entered into by the assessee to sell the foreign currency at an agreed price at a future date fallin....

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.... following the aforesaid decisions, we dismiss ground No. 2 of the Revenue. 5. The cross objection filed by the assessee is on the following grounds : 1(a) Without prejudice to the respondent's contention that the loss on revaluation of unmatured Forward Foreign Exchange Contracts as at 31st March, 1998 ought to be allowed, the respondents submit that in the event the loss of ₹ 6,721,852, f....

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....y directed in this regard. 2. The respondents submit that CIT(A) ought to have directed the AO to grant credit for tax deducted at source (TDS) of ₹ 4,872 (Rs.3,448,392 - ₹ 3,443,520). The respondents pray that the AO be suitably directed in the matter. 3. The CIT(A) ought to have held that the respondents have suffered loss of revenue on account of interest under section 244A on re....