TMI Blog2003 (1) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... e export contracts entered into by the assessee for export of cotton in some cases failed. In the circumstances, the assessee was entitled to claim deduction in respect of Rs. 13.50 lakhs as a business loss. - In the circumstances, the assessee was entitled to claim deduction in respect of Rs. 13.50 lakhs as a business loss. - - - - - Dated:- 22-1-2003 - Judge(s) : S. H. KAPADIA., J. P. DEVADHA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llation of forward booking of foreign exchange with the banks in respect of export orders. The Assessing Officer disallowed the deduction on the ground that the assessee had short sold the foreign exchange and that the payments made were not in the nature of damages, but they were made to settle the transaction without delivery and, therefore, the said amount of Rs. 13.50 lakhs was a speculation l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... speculative transactions. Accordingly, the Tribunal allowed the appeal. Being aggrieved, the Department has come by way of appeal to this court. Findings : The assessee was not a dealer in foreign exchange. The assessee was a cotton exporter. The assessee was an export house. Therefore, foreign exchange contracts were booked only as incidental to the assessee's regular course of business. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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