https://www.taxtmi.com/caselaws?id=763757 Washout charges arising from closing commodity hedge contracts were treated as business income where the transactions were linked to underlying delivery contracts and used to manage price risk in the physical palm oil business. Genuine hedging activity was recognised as part of the trading business, not as an independent speculative venture, and section 43(5) was applied to exclude such contracts from speculative treatment. The India-Singapore DTAA was read as taxing business income under Article 7 without distinguishing speculative from non-speculative business receipts, while Article 23 was found inapplicable where the income was covered by an earlier article. In the absence of a permanent establishment in India, the receipts were not taxable in India because the Indian payer was only the source of payment, not the source of income. en-us Wed, 18 Dec 2024 00:00:00 +0530 Fri, 27 Dec 2024 09:00:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763757 Washout charges arising from closing commodity hedge contracts were treated as business income where the transactions were linked to underlying delivery contracts and used to manage price risk in the physical palm oil business. Genuine hedging activity was recognised as part of the trading business, not as an independent speculative venture, and section 43(5) was applied to exclude such contracts from speculative treatment. The India-Singapore DTAA was read as taxing business income under Article 7 without distinguishing speculative from non-speculative business receipts, while Article 23 was found inapplicable where the income was covered by an earlier article. In the absence of a permanent establishment in India, the receipts were not taxable in India because the Indian payer was only the source of payment, not the source of income. Case-Laws Income Tax Wed, 18 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763757