https://www.taxtmi.com/caselaws?id=11919 A foreign exchange forward contract entered into by an exporter as a hedge against exchange fluctuation risk, and linked to actual export orders, is treated as incidental to the regular course of business rather than a speculative transaction under section 43(5). Where the assessee is not a dealer in foreign exchange and the cancellation payment arises from failed hedge contracts booked for export business, the resulting loss is allowable as a business loss and not a speculative loss. The text states that the loss was correctly characterised as business loss in favour of the assessee. en-us Wed, 22 Jan 2003 00:00:00 +0530 Mon, 29 Sep 2025 16:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11919 A foreign exchange forward contract entered into by an exporter as a hedge against exchange fluctuation risk, and linked to actual export orders, is treated as incidental to the regular course of business rather than a speculative transaction under section 43(5). Where the assessee is not a dealer in foreign exchange and the cancellation payment arises from failed hedge contracts booked for export business, the resulting loss is allowable as a business loss and not a speculative loss. The text states that the loss was correctly characterised as business loss in favour of the assessee. Case-Laws Income Tax Wed, 22 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11919