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2018 (6) TMI 170 - AT - Income TaxRevision u/s 263 - allowability of Forward Contract Loss - Held that:- AO in his order passed u/s 143(3) has not held that the “Forward Contract Loss” claimed by the assessee is to be treated as Speculative loss. The AO accepted the expenditure of the assessee. Under these circumstances, it cannot be said that there was non-application of mind by the assessing officer to this issue or that the order was passed without making adequate enquiries or verification which should have been made or that the order was passed allowing relief without enquiring into the claim. It is also not a case where the AO has not examined this issue in the manner it has to be examined. Thus the order in question passed by the assessing officer u/s 143(3) on 24.02.2015, on this issue of ‘Loss on Forward Contract’ is neither erroneous nor prejudicial to the interest of revenue. Whether transaction in question can be called a speculative transaction? - Held that:- As decided in BADRIDAS GAURIDU (P.) LTD. [2003 (1) TMI 61 - BOMBAY HIGH COURT] when the assessee is not dealer in foreign exchange and as a part of his normal business activity, enters into hedging contracts of foreign exchange, the loss in question is normal business loss and cannot be held a “Speculation Loss” as covered by Section 43(5) - The loss in question is allowable as a normal business loss during the year and this loss is not “Speculation Loss”. In view of the above discussion we allow this appeal of the assessee
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