https://www.taxtmi.com/caselaws?id=795694 Gains from cancellation or early settlement of forward foreign exchange contracts used solely to hedge debt investments are characterised as capital gains. The contracts were linked to the value and tenor of the underlying securities, had to be unwound when those securities were sold, and were not shown to involve independent foreign-exchange trading. As hedging instruments, they take the character of the underlying capital investments and constitute capital assets. Their cancellation or early settlement extinguishes contractual rights and obligations, amounting to a transfer. The notes state that consistent earlier decisions on identical facts remain binding absent reversal or stay by a superior forum. en-us Wed, 08 Jul 2026 00:00:00 +0530 Sat, 25 Jul 2026 08:54:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795694 Gains from cancellation or early settlement of forward foreign exchange contracts used solely to hedge debt investments are characterised as capital gains. The contracts were linked to the value and tenor of the underlying securities, had to be unwound when those securities were sold, and were not shown to involve independent foreign-exchange trading. As hedging instruments, they take the character of the underlying capital investments and constitute capital assets. Their cancellation or early settlement extinguishes contractual rights and obligations, amounting to a transfer. The notes state that consistent earlier decisions on identical facts remain binding absent reversal or stay by a superior forum. Case-Laws Income Tax Wed, 08 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795694