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2015 (10) TMI 2771 - AT - Income TaxDisallowance of business loss treating the same as speculation loss arising out of foreign exchange contracts - HELD THAT:- We are of the view when the assessee is not a dealer in foreign exchange but an exporter of commodities and assessee had entered into forward contracts with banks in respect of foreign exchange but some of these contracts could not be honoured by the assessee for which it has to pay and which was debited to the P&L Account and claimed the same as business loss/hedging loss. In order to hedge against losses, the assessee had booked foreign exchange in the forward market with the bank but the export contract entered into by the assessee for export of commodities in some cases failed, the assessee is entitled to claim for deduction of loss as a business loss. Accordingly, respectfully following Hon’ble jurisdictional High court in the case of Soorajmull Nagarmull [1980 (9) TMI 69 - CALCUTTA HIGH COURT] we allow the claim of the assessee. This issue of assessee’s appeal is allowed.
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