https://www.taxtmi.com/caselaws?id=761254 The ITAT Mumbai held that loss from Forward Foreign Exchange Contracts (FCC) constitutes short-term capital loss. The assessee, a registered Foreign Portfolio Investor, entered FCC with a bank to hedge foreign currency fluctuation risk. The Tribunal relied on precedents from Citicorp Investment Bank and D.B. International cases, which treated gains from forward contracts as capital gains. Applying this principle consistently, losses from such contracts must be treated as capital losses eligible for carry forward under capital gains head. Revenue's appeal was dismissed. en-us Tue, 05 Nov 2024 00:00:00 +0530 Wed, 06 Nov 2024 09:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761254 The ITAT Mumbai held that loss from Forward Foreign Exchange Contracts (FCC) constitutes short-term capital loss. The assessee, a registered Foreign Portfolio Investor, entered FCC with a bank to hedge foreign currency fluctuation risk. The Tribunal relied on precedents from Citicorp Investment Bank and D.B. International cases, which treated gains from forward contracts as capital gains. Applying this principle consistently, losses from such contracts must be treated as capital losses eligible for carry forward under capital gains head. Revenue's appeal was dismissed. Case-Laws Income Tax Tue, 05 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761254