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2018 (1) TMI 133 - ITAT VISAKHAPATNAMForward contracts loss on foreign exchange transactions assessed as speculation loss u/s 43(5) - Held that:- The assessee is exporter of tobacco and during the year under consideration the assessee entered into foreign exchange forward contract to mitigate the loss on fluctuation of foreign currency. There is no dispute with regard to the fact that the assessee is not trading in currency and the entire transactions were routed through bank. The total export turnover of the assessee was US$ 5,61,17,429 and the value of forward contracts booked by the assessee was US$ 4,22,92,364 which is less than the value of the exports. The facts of the issue are similar to that of the decision of Hon’ble ITAT, Visakhapatnam in the case of Sri Ramalingeswara Rice & Oil Mill [2016 (10) TMI 924 - ITAT VISAKHAPATNAM] and the issue is squarely covered by the order of this Tribunal. - Decided against revenue.
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