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2018 (3) TMI 2003 - HC - Income TaxForeign exchange loss - assessee had received amounts in the normal course of its business at the agreed contractual rates, from the foreign purchasers and that consequently the loss was purely speculative - Whether a speculative transaction, hit by Section 43(5)? - As per ITAT action of the CIT (A) in accepting the explanation of the assessee and in deleting the disallowance in question made by the Assessing Officer thus cannot be held unjustified - HELD THAT:- This Court is of the opinion that the findings of fact by the CIT(A) and the ITAT are concurrent and based upon sound reasons. Both the appellate authorities have relied upon CIT Vs. Woodward Governor India (P) Ltd. [2009 (4) TMI 4 - SUPREME COURT]. The hedging transaction was necessary for the assessee to protect itself from currency fluctuation risks it was inevitably exposed in the case of export trade. The assessee had reported identical transactions in the past which were accepted by the Revenue. For these reasons, the Court holds that no substantial question of law arises. Advance of interest free loans to a related party - HELD THAT:- The findings of fact again are that the lending was on the basis of commercial expediency. TDS u/s 195 - Non deduction of TDS on account of export commission - HELD THAT:- The findings of fact are that the foreign entity receiving the amounts were not Indian residents and subject to tax and that the services rendered were rendered outside India.
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