Case Law Details
PCIT Vs Emmsons International Ltd. (Delhi High Court)
Court is of the view that the same was not called for, as the said CBDT Circular No. 3/2010 dated 2nd March, 2010 has been issued in respect of loss on account of trading in foreign exchange derivatives. In the present case, however, the assessee had entered into derivative contracts in order to hedge its exchange risk in respect of export proceeds receivable by it in foreign exchange. Forward contracts entered into by the assessee were not by way of trading per se in foreign exchange derivatives. Consequently, CBDT Circular No. 3/2010 dated 2nd March, 2010 has no application to the facts of the present case.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Present Income Tax Appeal has been filed challenging the Order dated 14th October, 2019 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No.4603/Del/2019 for the Assessment Year 2012-13.
2. Learned Counsel for the Appellant states that the ITAT has erred in deleting the Notional Forex Loss of Rs.8,95,40,121/- disallowed by the Assessing Officer by relying upon the decision of Supreme Court in the case of CIT Vs. Woodward Governor India Ltd., 312 ITR 254(SC) which was rendered in respect of actual transactions in contradiction to notional transactions in the case of Assessee.
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