Loss on account of Forward Contracts are not speculative loss

PCIT Vs Simon India Ltd. (Delhi High Court) Delhi High Court held that loss on account of the Forward Contracts cannot be considered as speculative loss and hence loss on Forward Contracts is allowable as a deduction from the income chargeable to tax even if the Forward Contracts have not closed. Facts- The sole controversy in ITA No.976/Del/2013 relates to whether the loss on Forward Cover Purchase Contracts for foreign exchange (hereafter ‘Forward Contracts’) is allowable as a deduction from the income chargeable to tax for the relevant assessment year notwithstanding that the Forward C...