https://www.taxtmi.com/caselaws?id=215599 Gains from cancellation of foreign exchange forward contracts entered into to hedge investment exposure were treated as capital gains, because the contracts had a direct nexus with the assessee's investment activity and the dominant purpose was to protect capital assets; treatment under section 115AD did not change that character. The contrary classification as income from other sources was rejected. Interest under section 234B was held to be consequential to the substantive tax adjustment and required recomputation after deletion of the principal addition. The assessee obtained relief on the characterisation issue and consequential relief on interest. en-us Fri, 27 Jul 2012 00:00:00 +0530 Mon, 03 Aug 2026 11:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215599 Gains from cancellation of foreign exchange forward contracts entered into to hedge investment exposure were treated as capital gains, because the contracts had a direct nexus with the assessee's investment activity and the dominant purpose was to protect capital assets; treatment under section 115AD did not change that character. The contrary classification as income from other sources was rejected. Interest under section 234B was held to be consequential to the substantive tax adjustment and required recomputation after deletion of the principal addition. The assessee obtained relief on the characterisation issue and consequential relief on interest. Case-Laws Income Tax Fri, 27 Jul 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215599