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2024 (3) TMI 1122 - AT - Income TaxNature of loss - Marked to market loss on hedging of the transaction - treated as speculative loss or normal business loss - HELD THAT:- The issue is squarely covered by the various decisions in the case of CIT vs. Soorajmull Nagarmull [1980 (9) TMI 69 - CALCUTTA HIGH COURT] and in the case of CIT v. Badridas Gauridu (P.) Ltd. [2003 (1) TMI 61 - BOMBAY HIGH COURT]. The similar view has taken in the case of Shankara Infrastructure Materials Ltd. [2021 (7) TMI 306 - KARNATAKA HIGH COURT] wherein, it has been held that the loss incurred by the assessee on account of hedging the transaction to avoid higher loss on account of foreign exchange fluctuation was to be allowed as deduction u/s 37(1) of the Act. Appeal of the assessee stands allowed.
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