https://www.taxtmi.com/caselaws?id=761251 ITAT Chennai held that foreign exchange forward contracts do not constitute speculative transactions under Section 43(5) of the Income Tax Act. The tribunal ruled that since foreign currency is not a trading commodity and the assessee's contracts were settled by actual delivery rather than on net-to-net basis, Section 43(5) was inapplicable. Following the SC precedent in Woodward Governor India case, ITAT upheld CIT(A)'s order allowing deduction of provision for foreign exchange fluctuations and loss on forward contracts, dismissing the revenue's appeal. en-us Fri, 25 Oct 2024 00:00:00 +0530 Thu, 07 Nov 2024 08:47:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761251 ITAT Chennai held that foreign exchange forward contracts do not constitute speculative transactions under Section 43(5) of the Income Tax Act. The tribunal ruled that since foreign currency is not a trading commodity and the assessee's contracts were settled by actual delivery rather than on net-to-net basis, Section 43(5) was inapplicable. Following the SC precedent in Woodward Governor India case, ITAT upheld CIT(A)'s order allowing deduction of provision for foreign exchange fluctuations and loss on forward contracts, dismissing the revenue's appeal. Case-Laws Income Tax Fri, 25 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761251