Dismissing the appeal of the revenue the Court held that, Forward foreign exchange is not contingent in nature it is binding obligation on date of contract against the assessee. Accordingly the deletion of addition by the Tribunal is affirmed. Court also held that question which was not raised before the Tribunal cannot be raised first time before Court during the Course of oral arguments. (Arising from ITA No. 617 /Mum/2014 dt. 28-07-2016) (ITA No. 1097of 2017 dt. 5-11-2019) (AY. 2009 -10)
PCIT v Hotel Leela Venture Ltd. (2019) 112 taxmann.com 377 (Bom.)(HC)
S. 115JB : Book profit-Forward foreign exchange -Not contingent in nature–Binding obligation on date of contract against the assessee-Deletion of addition by the Tribunal is affirmed– Question which was not raised before the Tribunal cannot be raised first time before Court during the Course of oral arguments. [S. 37 (1), 260A]