https://www.taxtmi.com/caselaws?id=457035 ITAT Chennai held that foreign exchange derivative contract losses should be treated proportionally. Losses from derivative transactions matching export turnover qualify as regular business losses under normal business provisions. However, losses from derivative transactions exceeding export turnover constitute speculative losses under section 73, cannot be set off against business income. Additionally, prematurely cancelled forward contracts must be treated as speculative transactions, not business transactions. The matter was remanded to AO for fresh computation following these principles. Revenue's appeal allowed for statistical purposes. en-us Fri, 18 Dec 2015 00:00:00 +0530 Mon, 02 Sep 2024 19:54:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457035 ITAT Chennai held that foreign exchange derivative contract losses should be treated proportionally. Losses from derivative transactions matching export turnover qualify as regular business losses under normal business provisions. However, losses from derivative transactions exceeding export turnover constitute speculative losses under section 73, cannot be set off against business income. Additionally, prematurely cancelled forward contracts must be treated as speculative transactions, not business transactions. The matter was remanded to AO for fresh computation following these principles. Revenue's appeal allowed for statistical purposes. Case-Laws Income Tax Fri, 18 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457035