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2018 (5) TMI 1534 - AT - Income TaxDisallowance of foreign exchange loss - whether the loss is speculative loss or normal business loss - loss due to forward contract cancellation - Held that:- assessee has given bill wise detail of the exchange loss suffered by it due to forward contract cancellation - since foreign exchange gains has taxed, the loss shall also be allowed - they are the part of the chain of similar transactions - activity of entering into forward contract was in the regular course of its business only to safeguard against the loss on account of foreign exchange variation - thus the transactions entered were only in regular course of business and not speculative - Decided in favor of assessee Disallowance of discount given to sister concern - Held that:- there is no bar in the Act which prohibits giving discount to sister concerns - the genuineness of the payment has not been doubted - the business need of an assessee has to be decided by him and not by the departmental officers - just because payment has been made to sister-entity, it cannot be disallowed - Decided in favor of assessee
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