TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
Functional comparability governs software-service benchmarking: dissimilar companies are excluded, while related-party filters, margins and working-ca...
The assessee, a Foreign Portfolio Investor registered in India, entered into Forward Foreign Exchange Contracts (FCC) with HDFC Bank to safeguard against foreign currency fluctuation risk. The issue pertained to the treatment of loss arising from FCC as a short-term capital loss. The Tribunal held that while considering a similar issue, the coordinate bench in Citicorp Investment Bank (Singapore) Ltd. ruled that profit earned by a Singaporean bank on termination of forward contracts entered for safeguarding against foreign exchange fluctuation in respect of debentures purchased in India would be a capital gain exempt under the Indo-Singaporean DTAA. Additionally, in D.B. International (Asia) Ltd., it was held that the gain from a forward foreign exchange contract should be treated as a capital gain, and consequently, the loss arising from such a contract should be treated as a capital loss. Thus, the Tribunal found no infirmity in considering the loss on rollover/cancellation of FCC as a short-term capital loss eligible for carry forward under the head "capital gains," dismissing the grounds raised by the Revenue.
The assessee, a Foreign Portfolio Investor registered in India, entered into Forward Foreign Exchange Contracts (FCC) with HDFC Bank to safeguard against foreign currency fluctuation risk. The issue pertained to the treatment of loss arising from FCC as a short-term capital loss. The Tribunal held that while considering a similar issue, the coordinate bench in Citicorp Investment Bank (Singapore) Ltd. ruled that profit earned by a Singaporean bank on termination of forward contracts entered for safeguarding against foreign exchange fluctuation in respect of debentures purchased in India would be a capital gain exempt under the Indo-Singaporean DTAA. Additionally, in D.B. International (Asia) Ltd., it was held that the gain from a forward foreign exchange contract should be treated as a capital gain, and consequently, the loss arising from such a contract should be treated as a capital loss. Thus, the Tribunal found no infirmity in considering the loss on rollover/cancellation of FCC as a short-term capital loss eligible for carry forward under the head "capital gains," dismissing the grounds raised by the Revenue.
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