2003 (1) TMI 61 - HC - Income Tax

Speculative Transaction - forward contract - The assessee was not a dealer in foreign exchange. The assessee was an exporter of cotton. In order to hedge against losses, the assessee had booked foreign exchange in the forward market with the bank. However, the export contracts entered into by the assessee for export of cotton in some cases failed. In the circumstances, the assessee was entitled to claim deduction in respect of Rs. 13.50 lakhs as a business loss. - In the circumstances, the assessee was entitled to claim deduction in respect of Rs. 13.50 lakhs as a business loss.