TMI Blog2014 (9) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... diamonds from the cost of purchase of rough diamonds is held to be correct - the alternate plea that apart from reducing the import cost from the total export turnover, it shall also be reduced from the total turnover which exceeds the export income - once again the question has been considered and decided in the peculiar facts and in relation to the present assessee - No general rule has been laid down - The matter has to be decided on case to case basis - rough diamond constitutes only 0.78% of the total turnover and if those diamonds which are found to be incapable for further processing are sold in unfinished form, that conclusion cannot be termed as perverse or vitiated by any error of law apparent on the face of record – Decided agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffecting the delivery of the foreign currency for which it entered into a contract with the forward market. The forward contract was booked and cancelled on the maturity date of the booking. Thus, in these circumstances, when no evidence was adduced to prove that the cancellation of forward contract before the date of delivery was a hedging contract, therefore, it falls within the ambit of the definition of speculative transaction , which would attract proviso (a) of section 43(5) of the I.T. Act. 4. Mr.Malhotra therefore, submits that the judgment of this Court in the case of Commissioner of Income-Tax V/s. Badridas Gauridu (P) Ltd. reported in 261 I.T.R. 256 was rightly distinguished. When, the Tribunal confirmed such finding of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n receipt of export proceeds. It is in these circumstances that the Division Bench judgment and the ratio thereof was applied and, therefore, the first question cannot be termed as substantial question of law. 7. With regard to the second question, Mr.Pardiwalla submits that while it is true that the assessee's main contention which was raised before the assessing officer was not accepted and to that extent, the order of the assessing officer was correct and upheld. He states that the alternate argument before the assessing officer and the Tribunal shall be noted by this Court as ordinary commercial parlance also recognizes the fact that when the business is of such nature, namely procuring rough diamonds, cutting and polishing them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is in speculative business or speculative dealings is ordinarily a part of his business. We find that any larger question or controversy need not be addressed in the facts of the case before us. Once it is undisputed that the assessee is in the business of exports of diamonds and he credited the exchange difference which is for the purpose of a transaction which was undertaken in foreign exchange and that transaction fell within the parameters of law as laid down by the Division Bench, then, this is not a fit case for interference in further appellate jurisdiction. In para 17 18 of the order under challenge, the Tribunal noted the rival contentions and relied on the Division Bench judgment of this Court. After reverting to the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and in relation to the present assessee. No general rule has been laid down. The matter has to be decided on case to case basis. When considering the fact that rough diamond constitutes only 0.78% of the total turnover and if those diamonds which are found to be incapable for further processing are sold in unfinished form, that conclusion cannot be termed as perverse or vitiated by any error of law apparent on the face of record. 11. In the light of above, it is not necessary to refer to the judgment of the Hon'ble Supreme Court in Punjab Stainless Steel Industries (supra) which deals with a wider question of law. As the Hon'ble Supreme Court has held that this question must be approached in the light of turnover undertaken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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