2018 (4) TMI 244

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....by : Shri Amit Jain, Sr. DR ORDER PER SUDHANSHU SRIVASTAVA, J.M. This appeal has been preferred by the department against the order dated 30.06.2014 passed by the Ld. CIT(A)-VIII, Delhi for assessment year 2009-10 wherein vide the impugned order, the Ld. Commissioner of Income Tax(A) has deleted the disallowance of notional foreign exchange loss of Rs. 56,16,520/-. The grounds raised by t....

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....ssee filed the return declaring income of Rs. 90,06,654/- and subsequently the case was selected for scrutiny. During the course of scrutiny proceedings, the Assessing Officer observed that the assessee company had debited an amount of Rs. 2,18,67,706/- on account of loss on foreign exchange and the assessee was required to give a break-up of the same. As per break-up submitted by the assessee, th....

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....ce of the assessee, the said loss was a notional loss which was booked by the assessee on the restatement of liability. It was submitted that the same had been rightly disallowed by the Assessing Officer as the same did not occur during the period under consideration. It was submitted that true profit or loss could be arrived at only on the final settlement of the contract and not during the perio....

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....ign exchange fluctuation as per the exchange rate prevailing on the last date of financial year was allowable as a deduction and was not notional and contingent. 5. We have heard the rival submissions and perused the material available on record. We fully agree with the averment of the Ld. AR that the issue under appeal by the department is covered in favour of the assessee by the judgment of t....