TMI Blog2017 (3) TMI 1797X X X X Extracts X X X X X X X X Extracts X X X X ..... e arising from forward foreign exchange contract is assessable under the head Capital gains . Hence we hold that the gains arising from forward foreign exchange contract are assessable under the head Capital gain and not as Income from other sources . Hence, grounds raised by the department on this issue are dismissed. - ITA No. 5479/Mum/2014, CO No. 19/Mum/2016 (Arising out ITA No.5479/Mum/2014 ) - - - Dated:- 24-3-2017 - Shri G S Pannu, AM, Shri Saktijit Dey, JM Revenue By: Shri B S Bisti [CIT-DR] Cross-objector By: Shri Arvind Sonde ORDER Saktijit Dey, The captioned appeal and the cross-objection by the department and the assessee respectively are against the com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ultimately held that gain arising on forward foreign exchange contract cannot be treated as business transactions and gain on cancellation of the forward foreign exchange contract gives rise to income under the head Income from other sources. Accordingly, he completed the assessment. Being aggrieved by the assessment order so passed, the assessee preferred appeal before the CIT(A). The learned CIT(A) noticing that in assessee s own case for A.Y. 2001-02, the ITAT has held that gain derived from cancellation of forward foreign exchange contract is to be treated as capital gain, which was subsequently followed by his predecessor while deciding assessee s own case for A.Ys 2006-07 and 2007-08, held that gain derived from forward foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised by the department on this issue are dismissed. 5. In the result, the department s appeal is dismissed. 6. CO No. 19/Mum/2016 : Ground nos. 1 and 2 are not pressed. Hence, these two grounds are dismissed as not pressed. 7. Ground no.3 is on disallowance of assessee s claim of set off of brought forward capital loss against the gains from forward foreign exchange contract. 8. We have heard the parties and perused the material on record. The learned AR has submitted before us that the gain derived from the forward foreign exchange contract since has been held to be capital gain; the same should be set off against the capital loss. As could be seen from the impugned order of the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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