Assessing Officer following the CBDT Instruction No. 3 of 2010 disallowed loss claimed by assessee holding that same being marked to market loss was speculative and notional in nature. On appeal the Tribunal held that since assessee-company had been consistently following mercantile system of accounting and accounting standards-11 over years and applying closing rate of foreign currency at year end, marked to market loss (MTM Loss) arising on valuation of forward contract on closing date of accounting year was to be allowed as business loss under section 28(i) of the Act.  (AY. 2016-17)