ORDER

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of National Faceless Appeal Centre (NFAC), Delhi, vide order no. ITBA/NFAC/S/250/2024-25/1073857593(1), dated 28.02.2025, passed against the assessment order by Assistant Commissioner of Income-tax, Circle – 7(2)(2), Mumbai, u/s. 143(3) of the Income-tax Act (hereinafter referred to as the “Act”), dated 29.02.2016 for Assessment Year 2012-13.

2. Grounds taken by assessee are reproduced as under:

Ground No. 1: Disallowance of losses arising on fair valuation of Benchmark Linked Debentures (BLD') amounting to INR 1,84,97,467.

The Ld. NFAC erred in law in upholding the order of the Ld. AO and rejecting the claim of INR 1,84,97,467 arising on fair valuation of BLDs as on 31 March 2012. While rejecting the Appellant's claim, the Id. NFAC inter alia erred on following counts:

1.1. Considering the unrealized losses of INR 1,84,97,467 arising on fair valuation of BL.Ds as contingent liability.

1.2. Not following the decision of the Honorable Supreme Court of India in the case of Woodward Governor India Pvt. Ltd 312 ITR 254 and stating in the order that the Appellant is not following the condition l