https://www.taxtmi.com/caselaws?id=372570 The High Court held that profits from hedging contracts were eligible for deduction under Section 80IB of the Income Tax Act as they were directly linked to the manufacturing activity. The Court emphasized the essential role of hedging in stabilizing costs and making manufacturing profits predictable. Additionally, the Court allowed losses from hedging contracts to be set off against business income, stating that such losses were not speculative but inherent to the business operation. The Court dismissed the revenue's appeals, affirming the decisions of the lower authorities. en-us Mon, 17 Dec 2018 00:00:00 +0530 Tue, 25 Dec 2018 08:25:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=372570 The High Court held that profits from hedging contracts were eligible for deduction under Section 80IB of the Income Tax Act as they were directly linked to the manufacturing activity. The Court emphasized the essential role of hedging in stabilizing costs and making manufacturing profits predictable. Additionally, the Court allowed losses from hedging contracts to be set off against business income, stating that such losses were not speculative but inherent to the business operation. The Court dismissed the revenue's appeals, affirming the decisions of the lower authorities. Case-Laws Income Tax Mon, 17 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=372570