Mark to Market Loss Disallowed: Tax Appeal Ruling

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

Daily Limit Reached