2021 (1) TMI 578

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed this appeal against the order of the Commissioner of Income Tax (Appeals)-2, Chennai, in ITA No. 323/2016-17/A.Y. 2013-14/CIT (A)-2 dated 06.09.2018 for the assessment year 2013-14. 2. M/s. M.L. Exports, the assessee, a firm engaged in the business of tobacco trading and exports, incurred losses on Foreign Currency (FC) utilization, FC cancellation & FC revaluation in the return filed for the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bmitted that the impugned loss was quantified in accordance with AS-11 on the Foreign Exchange forward contracts. The assessee has been consistently following this method of accounting and admitted the profits on revaluation of FCs from AYs 2011-12 onwards. The lower authorities are not justified in treating the loss as notional one and not allowing it. The Ld. AR placed reliance on the decision r....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....en subsequent to the decision of the Hon'ble Apex Court. We, therefore, accept the contention of the assessee and hold that the addition is unsustainable. We, accordingly, direct the Assessing Officer to delete the same." Per contra, the Ld. DR supported the order of the lower authorities. 4. We heard the rival submissions and gone through the relevant material. In this case, the pending for....