INCOME TAX ACT, 1961

Section 260A

Appeal (High Court) - Substantial question of law - Loss on foreign exchange forward contract loss -

Issue arose for consideration as to whether Tribunal was right in deleting the addition made by AO on account of disallowance of loss on foreign exchange forward contract loss and not appreciating the fact that the said loss was a notional loss and hence cannot be allowed. Held: It was an agreed position between the parties that the issue raised herein stands concluded in favour of assessee by the decisions of this Court in CIT v. D. Chetan & Co (2016) 75 taxmann.com 300 (Bom) : (2016) 243 Taxman 356 (Bom) : 2016 TaxPub(DT) 4887 (Bom-HC) and CIT v. Chaitya [ITA No. 128 of 2015, dated 7-7-2017]. Thus, disallowance of loss on foreign exchange forward contract loss could not be made and accordingly, question as proposed did not give rise to any substantial question of law.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

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