2015 (4) TMI 1368

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....tment of losses on account of derivatives transactions by the assessee. So far as the first question is concerned, this Court in an common order in ITA No.62/2015 and connected matters has today rejected the Revenue's contentions and held firstly that the treatment of the stock in previous years, which had attained finality, showed that there was nothing irregular in the books maintained by the assessee and that since the assessee had been consistently reporting high yield recovery, i.e., second highest in the industry which was 67% - as against the normal rate of 63-65%, the conclusions drawn by the AO were unsupportable. Besides, the assessee had already shown higher G.P. return rates in the concerned assessment year including the curren....

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....ation the written submissions from both the sides on this issue. The assessee is engaged in the export of rice and other processed goods. The assessee also deals in agro commodities which are imported for domestic consumption. Assessee also involved in import of machinery for processing of rice and also units for food processing. Thus, assessee is exposed to the risk of fluctuation in foreign exchange. The assessee is eligible to cover the risk by following the RBI guidelines in this regard by way of entering into hedging contracts which also includes hedging through cross currency hedging contracts. This type of hedging contracts can be entered only through authorized dealers. The assessee has submitted copy of invoices related to export f....