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2015 (9) TMI 497 - AT - Income TaxForward contracts in respect of forex transactions entered into by the assessee with the banks - whether will not fall under the definition of speculative transaction and holding that assessee is entitled to claim such loss as business loss as held by CIT(A) - Held that:- Forex transactions entered into by the assessee are not derivative transactions. However, it was held that transactions considered for determining the business loss from derivative transactions cannot be more than the total export turnover of the assessee for the assessment year under consideration and if derivative transactions are in excess of export turnover then the loss suffered in respect of portion of that excess transactions are to be considered as speculative loss only since the excess derivative transaction has no proximity with the export turnover. In this case also, it appears that forex transactions entered into by the assessee are more than the export turnover. Therefore, we direct the Assessing Officer to follow the decision of this Tribunal in the case of Majestic Exports (2015 (7) TMI 936 - ITAT CHENNAI ) and recompute the business loss in line with the order of the Tribunal, after calling for details from the assessee and giving opportunity of being heard - Decided partly in favour of revenue for statistical purposes.
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