Loss on premature cancellation of forward contract is business loss

M/s. Blue Star Diamonds Pvt. Ltd. Vs Addl. CIT (ITAT Mumbai) Conclusion – Assessee sufficiently proved that the loss incurred on premature cancellation of forward contract was a ‘business loss’ inasmuch as the same was incurred in the course of carrying on of the business Facts – Disallowance u/s 14A – AO disallowed INR 6,88,272 u/s 14A by applying rule 8D. Assessee submitted that investment in shares was made during the erstwhile firm, that the assessee-company since taking over of the erstwhile partnership firm had not earned any dividend during the year; and, that the dividend had...