The AO disallowed the loss against a forward contract entered into hedge the risk against foreign exchange fluctuations to cover exports and imports as speculative in nature , relying on the Instruction No 3\/2010 dt. 23- 3 \u2013 2010. \u00a0Tribunal allowed the claim . On appeal by Revenue \u00a0Dismissing the Court held that Loss arising on reinstatement of the forward cover purchase\u00a0 contracts is\u00a0 not speculative . CBDT Instructions and circulars which are contrary to law are not binding . Loss is allowable as revenue expenditure. ( AY. 2009 -10 )<\/p>\n
\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" S.37(1): Business expenditure \u2013 Marked -to -Market loss \u2013 Loss arising on reinstatement of the forward cover purchase contracts \u2013 Not speculative -CBDT Instructions and circulars which are contrary to law are not binding – Allowable as revenue expenditure . [ S. 43(5), 73 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-32740","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-8w4","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32740","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=32740"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32740\/revisions"}],"predecessor-version":[{"id":32741,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32740\/revisions\/32741"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=32740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=32740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=32740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}