TMI Blog2024 (3) TMI 1122X X X X Extracts X X X X X X X X Extracts X X X X ..... case of CIT vs. Soorajmull Nagarmull [ 1980 (9) TMI 69 - CALCUTTA HIGH COURT] and in the case of CIT v. Badridas Gauridu (P.) Ltd. [ 2003 (1) TMI 61 - BOMBAY HIGH COURT] . The similar view has taken in the case of Shankara Infrastructure Materials Ltd. [ 2021 (7) TMI 306 - KARNATAKA HIGH COURT ] wherein, it has been held that the loss incurred by the assessee on account of hedging the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The brief facts of the case are that the assessee is in business of purchase and sale of bullions and also manufacturers of gold ornaments. Since the price of gold constantly fluctuates, to safeguard itself from loss, if any, due to fluctuation the appellant had entered into future contracts with the suppliers of gold to safeguard against loss through future price fluctuations in respect of contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and at the end the assessee is guarded against any such unforeseen eventuality. Hence, the disallowance of loss on future transaction by the Assessing Officer is totally wrong and uncalled for. 6. The ld. DR, on the other hand, has relied upon the findings of the lower authorities. 7. We have heard the rival contentions. The issue is squarely covered by the various decisions of the Hon ble High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction in which a contract for the purchase or sale of a commodity is settled otherwise than by the actual delivery or transfer of such commodity. However, as stated above, the assessee was not a dealer in foreign exchange. The assessee was an exporter of cotton. In order to hedge against losses, the assessee had booked foreign exchange in the forward market with the bank. However, the export contr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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