IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 452 OF 2005 The Commr. Of Income Tax, City-VIII... ....... ......Appellant V/s M/s.Enercon India Ltd. ..... ......Respondent. Mr.Suresh Kumar i/by Mr.Pankaj Kapoor, Adv. For the appellant. Mr.J.D.Mistry i/by M/s. Mulla & Mulla, Adv. For the respondent. CORAM: SWATANTER KUMAR, C.J. & A.P.DESHPANDE, J. DATED: 29th JULY 2008. PC: In the present appeal following question of law is raised: “Whether in the facts and circumstances of the case, the Hon' ble I.T.A.T. Was right in law in deleting the addition made on account of disallowance of loss on account of foreign exchange forward contract?” On this ground the order of the Tribunal is impugned in the present appeal. The Tribunal while accepting the arguments advanced on behalf of the assessee relying upon decisions in the case of Asian 1 Chemicals Company, 194 ITR 634 (Bom) and Kamani Tubes Ltd. 207 ITR 298 (Bom) has answered this question and held that the loss incurred by the assessee on foreign exchange forward contract is disallowable on the ground that it was in the nature of a speculative loss. However finding of fact was also recorded that the assessee had cancelled the contract as it was not possible for the assessee company to remit the amount on the specified date and therefore the amount that has been paid by the assessee company was in the nature of the damages for breach of contract. 2. The view taken by the Income Tax Tribunal is consistent with its earlier view and is in consonance with the Judgment of Division Bench of this Court. Further it has recorded the findings of fact. In our opinion no question arises for consideration. Hence appeal stands dismissed. CHIEF JUSTICE A.P.DESHPANDE, J. 2