https://www.taxtmi.com/caselaws?id=216204 A gain arising on early settlement of a forward foreign exchange contract used to hedge a foreign currency loan for acquisition of debentures was treated as capital in nature. The contract was linked to the purchase of capital assets, so the settlement receipt retained the character of the underlying capital transaction rather than becoming income from other sources. The objection that remittance to Singapore had not been proved was not accepted on the record. The addition made by taxing the hedge settlement gain as income from other sources was deleted. en-us Wed, 08 Jun 2011 00:00:00 +0530 Mon, 03 Sep 2012 17:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=216204 A gain arising on early settlement of a forward foreign exchange contract used to hedge a foreign currency loan for acquisition of debentures was treated as capital in nature. The contract was linked to the purchase of capital assets, so the settlement receipt retained the character of the underlying capital transaction rather than becoming income from other sources. The objection that remittance to Singapore had not been proved was not accepted on the record. The addition made by taxing the hedge settlement gain as income from other sources was deleted. Case-Laws Income Tax Wed, 08 Jun 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=216204