2018 (3) TMI 2003

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....hatia, Sr.Standing counsel For the Respondent : Mr. Salil Aggarwal with Mr.Madhur Aggarwal and Mr.Uma Shankar, Advs. ORDER The revenue appeals the concurrent findings of fact and urges that the ITAT fell into error in not holding that the foreign exchange loss reported by the assessee, was essentially a speculative transaction, hit by Section 43(5). The assessee is an exporter and had ....

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.... 10. Having gone through the above cited decisions, we find that it has been unanimously held therein that forward contracts transactions when entered into with the banks for hedging the losses due to foreign exchange fluctuation on the export proceeds, are to be considered integral or incidental to the export activity of the assessee. Therefore, the losses or gains constitute the busines....

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....ead of loss, if the assessee earns income, then same is not exempted from tax as per the above decision of the Hon'ble Supreme Court in the case of CIT Vs. Woodward Governor India (P) Ltd. (supra). The action of the ld. CIT (Appeals) in accepting the explanation of the assessee and in deleting the disallowance in question made by the Assessing Officer thus cannot be held unjustified. The first app....

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....ccepted by the Revenue. For these reasons, the Court holds that no substantial question of law arises. The other two questions of law with respect to advance of interest free loans to a related party, the findings of fact again are that the lending was on the basis of commercial expediency. The last question was with respect to non deduction of TDS on account of export commission. The findings ....