2015 (10) TMI 2770

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....venue against the order of CIT(A), Mumbai, for the assessment year 2009-10, in the matter of order passed u/s.143(3) of the I.T.Act. 2. The only grievance of the revenue relates to deleting the disallowance made by the AO on account of mark to market loss. Rival contentions have been heard and record perused. The assessee's claim of mark to market loss was declined by the AO. By the impugned orde....

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....n-matured forward foreign exchange contract. The Special Bench has held that deduction is allowable under Income Tax Act in respect of those liabilities which crystallized during the previous year. A contingent liability depends purely on happening or not happening of an event, whereas if an event has already taken place, which, in the present case is of entering into the contract and undertaking ....

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.... principles have to be taken into consideration for deciding such issues. Therefore anticipated losses on account of existing obligation as on 31st March, determinable with reasonable currency, being in the nature of expenditure/ accrued liability, have to be taken into account while preparing financial statement. 5.4 In view of the above decisions and the fact that the department had accepted ....