Business-Linked Losses: ITAT Confirms Deductibility of Exchange – Difference Derivatives for Exporters

DCIT Vs Fiem Industries Ltd (ITAT Delhi) Hedging losses not speculative – ITAT Delhi upholds ₹ 18.6 Cr business loss on forward contracts- Only genuine hedging, not gambling – ITAT Delhi reaffirms s. 43(5) protection for exporters Revenue filed appeal against the order of CIT(A) deleting additions of ₹ 17.70 crore & ₹ 0.89 crore made by AO on account of loss on settlement of target-redemption forward contracts & exchange-difference derivatives respectively. Assessee, a manufacturer of automotive lighting, mirrors & sheet-metal components supplied to OEMs such as HMSI, TVS...