‘Mark to Market’ loss on forward and further contracts are not contingent in nature

ACIT Vs Sopra India Pvt. Ltd. (ITAT Delhi) ITAT Delhi held that ‘mark to market’ loss on future and forward contracts are not notional loss of contingent nature. Accordingly, foreign exchange fluctuation loss as claimed by the assessee allowed. Facts- The assessee is engaged in the business of development of software and providing IT solutions and software engineering services. In the course of assessment u/s. 143(3) of the Act, AO observed that assessee has debited and claimed foreign exchange fluctuation expenses of Rs.5,65,36,341/-. AO noted that the aforesaid loss on account of exchang...