https://www.taxtmi.com/caselaws?id=23588 HC held that the estimated profit booked on unsettled forward exchange contracts, computed with reference to prevailing exchange rates on the last day of the accounting year, constituted merely notional income and was not chargeable to tax for AYs 1972-73 and 1973-74. Rejecting the Tribunal's view that year-end events alone determine profit or loss regardless of subsequent settlement, HC ruled that taxable income arises only upon actual settlement of the forward contracts. The common question was answered in the negative, in favour of the assessee, with costs. en-us Tue, 13 Feb 1990 00:00:00 +0530 Thu, 04 Dec 2025 16:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23588 HC held that the estimated profit booked on unsettled forward exchange contracts, computed with reference to prevailing exchange rates on the last day of the accounting year, constituted merely notional income and was not chargeable to tax for AYs 1972-73 and 1973-74. Rejecting the Tribunal's view that year-end events alone determine profit or loss regardless of subsequent settlement, HC ruled that taxable income arises only upon actual settlement of the forward contracts. The common question was answered in the negative, in favour of the assessee, with costs. Case-Laws Income Tax Tue, 13 Feb 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23588