Forward contract loss from hedging for foreign exchange fluctuation is allowable deduction

CA Suraj R. Agrawal Brief of the case: ITAT Mumbai has held in the case of ACIT vs. M/s Venus Jewel  that Loss on account of forward contract entered into by the assessee to hedge against the loss arising on account of fluctuations in foreign exchange is an allowable deduction. Facts of the case: After taking note of the claim of forward contracts and the accounting policies, i.e. AS-11 (revised) and applying the ratio laid down by the Apex Court in the case of Woodward Governor India Pvt. Ltd. (supra) the claim of the assessee was allowed by the CIT (A), against which the Revenue is in a...