https://www.taxtmi.com/caselaws?id=33170 The High Court upheld the Tribunal's decision that the surplus from the cancellation of a forward exchange contract was a capital receipt not subject to tax. It was determined that the surplus was related to discharging an obligation on capital account and not liable to capital gains tax. The Court also affirmed that Section 28(iv) did not apply as the surplus was received in cash. The CIT's exercise of powers under Section 263 was deemed unjustified as the Assessing Officer's view was reasonable and sustainable. The appeal was dismissed without costs. en-us Wed, 18 Feb 2009 00:00:00 +0530 Wed, 01 Sep 2010 16:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33170 The High Court upheld the Tribunal's decision that the surplus from the cancellation of a forward exchange contract was a capital receipt not subject to tax. It was determined that the surplus was related to discharging an obligation on capital account and not liable to capital gains tax. The Court also affirmed that Section 28(iv) did not apply as the surplus was received in cash. The CIT's exercise of powers under Section 263 was deemed unjustified as the Assessing Officer's view was reasonable and sustainable. The appeal was dismissed without costs. Case-Laws Income Tax Wed, 18 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33170