2020 (11) TMI 855

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....s manufacturing, trading and retailing, filed its return of income for the AY.2009-10 on 24- 09-2009, admitting total income of Rs. 3,73,47,310/-. The assessment was completed on 23-12-2011 by treating the loss of Rs. 1,41,07,623/- with regard to derivative transactions as 'speculative loss' and brought it to tax u/s.43(5) of the Income Tax Act [Act]. 2.1. Thereafter, the assessee filed an appeal before the CIT(A) and the matter transferred upto ITAT. The ITAT remitted the issue back to the file of AO for deciding the same afresh in accordance with law. Thus, the assessment was completed u/s.143(3) r.w.s.148 and 254 of the Act. 3. During the remand proceedings, the AO observed that while computing the loss on foreign exchange, booking....

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....d CIT(A) erred both on facts and in law in holding that there is no basis of making addition of Rs. 1,91,84,500/- with respect to loss on derivate transactions. 3. Any other ground that may be urged at the time of hearing". 5. The case is taken up for hearing on 06-10-2020 through video conferencing and both the parties were heard. 6. Ld.DR, relied upon the assessment order while the Ld.Counsel for the assessee supported the orders of the CIT(A). 7. For the sake of ready reference, the relevant para of the CIT(A)'s order is reproduced herein below: "The details of the Foreign Currency Loans availed by the Assessee from SBI by converting the availed balances in Working Capital Facility, under FCNR-B Scheme, were as....