Disallowance of mark to market loss claimed by the appellant

Last updated: 10 August 2021
Quick Summary
This Income Tax Appellate Tribunal ruling concerns a company that claimed a significant unrealised loss on forward contracts due to foreign currency fluctuations. The Assessing Officer disallowed this loss, citing a CBDT instruction regarding notional and speculative losses. While the lower appellate authority upheld this disallowance, the Tribunal ultimately allowed the company's claim. They reasoned that disallowing the loss would be prejudicial, especially as the loss was reversed in the subsequent year when the contracts matured and similar gains had been accepted as income.

Court :
ITAT Mumbai

Brief :
Captioned appeal by the assessee is against the order dated 23.10.2019 of learned Commissioner of Income Tax (Appeals)�14, Mumbai for the assessment year 2016-17

Citation :
ITA No. 7834/MUM/2019

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

3 Months PLAN
999
(Excl. of GST ₹179)

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