Mark to Market Losses cannot be disallowed unless incurred in respect of speculative contracts

CA Saurabh Chokhra Brief of the case: The Hon’ble Bombay HC in the above-cited case held that mark to market loss in respect of forward contracts claimed as loss from Business income cannot be disallowed as the forward contracts were secured for to cover variation in the foreign exchange rate which would impact its business of import and export of diamonds. Therefore, unless the revenue proves that the same is speculative such mark to market losses cannot be disallowed simply treating the same notional. Facts of the case: The assessee was engaged in the business of import and export...