Assessee claimed derivative loss which was booked on a marked-to-market basis on foreign exchange fluctuation at year-end on a mercantile basis. Revenue disallowed the loss on the basis that the same was a provision for the future and was, therefore, notional in nature. High Court dismissed the departmental appeal and held that the loss was allowable as a deduction under section 37(1) of the Act. In this regard, High Court followed its earlier decision in the case of Pr. CIT v. Pricewaterhouse Coopers (P.) Ltd. [ITAT No. 269 of 2017, dated 17-12-2021]. (AY 2011-12)