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2018 (11) TMI 319
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.... PER B.R. BASKARAN (AM) : The appeal filed by the Revenue is directed against the order dated 1.12.2016 passed by the learned CIT(A)-12, Mumbai and it relates to A.Y. 2009-10. 2. The Revenue is aggrieved by the decision of the learned CIT(A) in holding that loss of Rs. 489.66 lakhs arising on revaluation of foreign exchange outstanding as at the year end is allowable as deduction even thou....
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....ark to market loss is notional loss. Hence, the Assessing Officer disallowed the above said claim of the assessee. 4. The learned CIT(A) took the view that the assessee could claim loss even if it is not accounted for its books of account as per the decision rendered by Hon'ble Supreme Court in the case of Kedarnath Jute Manufacturing Company Limited Vs. CIT (82 ITR 363). The learned CIT(A)....
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....the disallowance of Rs. 489.66 lakhs made by the Assessing Officer. Aggrieved, the Revenue has filed this appeal before us. 5. Having heard the rival contentions, we are of the view that the learned CIT(A) is justified in directed the Assessing Officer to allow loss of Rs. 489.66 lakhs, as the decision rendered the learned CIT(A) is supported by the decisions rendered by Hon'ble Supreme ....
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....so relied upon the books of accounts of the succeeding year i.e. pertaining to A.Y. 2010-11, wherein the assessee has claimed to have accounted for this loss and after setting off this loss it has disclosed net profit of Rs. 301.55 lakhs as foreign exchange fluctuation gains. We noticed that these materials were not confronted to the Assessing Officer. Since the loss of Rs. 489.66 lakhs is held to....