TaxTMI 
TaxTMI 
2014 (3) TMI 1179
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.....K.NARAYANAN, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER For the Appellant : Mr. R. Vijayaraghavan, Advocate, Mr. Anirudh Rai, IRS, CIT For the Respondent : Mr. Anirudh Rai, IRS, CIT, Mr. S. Sridhar, Advocate ORDER PER Dr. O.K. NARAYANAN, VICE-PRESIDENT These two appeals are cross appeals; filed by the assessee and by the Revenue. The relevant assessment year is 2008-09. These appeal....
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....ncurred on foreign exchange contract on account of exchange fluctuation is only in the revenue field and ought to have allowed as a revenue deduction. 3. The Assessing Officer has considered this as an item of derivative loss. The Assessing Officer held that the transactions entered into by the assessee, as specified in the provisions of sec.43(5) qualified to be treated as speculative transactio....
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....he assessee and Shri Anirudh Rai, the learned Commissioner of Income-tax appearing for the Revenue. 5. The learned counsel relied on the judgment of the Hon'ble High Court of Gujarat in the case of CIT vs. Panchmahal Steel Ltd. (215 Taxman 140. The court has held in the said case that the loss incurred on account of cancellation of forward contract is an allowable deduction in computing the taxab....
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....ssessee while dealing in derivatives is in the nature of speculation loss, as explained by the Assessing Officer. Therefore, we confirm the orders of the lower authorities on this point and reject the grounds raised by the assessee. 7. In the appeal filed by the Revenue, the ground is that the Commissioner of Income-tax(Appeals) has erred in allowing the deduction under sec.80JJAA of the Act. The....