Loss arising on year-end valuation of an interest rate swap allowable as a deduction – ITAT Mumbai

ABN Amro Securities India Pvt. Ltd. Vs. ITO (ITAT Mumbai)- When anticipated profits on unmatured contracts are held, to be non-taxable, there is no good reason as to why anticipated losses on unmatured contracts can be taken into account while computing business income, we find that there is an inherent fallacy in this approach inasmuch as anticipated losses and anticipated profits are not treated in the same manner in the computation of business profits. These dual standards in recognising anticipated losses and anticipated profits are accepted accounting norms and in the case of Chainrup Sa...