https://www.taxtmi.com/caselaws?id=360712 The High Court held that losses from forward contracts with banks to hedge against foreign exchange fluctuations were not speculative but incidental to the regular course of business for the assessee, who was engaged in manufacturing and trading goods, including exports. The Court allowed the expenses claimed as business deductions, emphasizing that the transactions were not speculative under the Income Tax Act. The Tax Appeal by the Revenue was dismissed, affirming the decision of the Income Tax Appellate Tribunal to delete the addition made by the Assessing Officer regarding the treatment of the loss from speculation business as a hedging loss. en-us Fri, 11 May 2018 00:00:00 +0530 Mon, 21 May 2018 10:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=360712 The High Court held that losses from forward contracts with banks to hedge against foreign exchange fluctuations were not speculative but incidental to the regular course of business for the assessee, who was engaged in manufacturing and trading goods, including exports. The Court allowed the expenses claimed as business deductions, emphasizing that the transactions were not speculative under the Income Tax Act. The Tax Appeal by the Revenue was dismissed, affirming the decision of the Income Tax Appellate Tribunal to delete the addition made by the Assessing Officer regarding the treatment of the loss from speculation business as a hedging loss. Case-Laws Income Tax Fri, 11 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=360712