Foreign Currency Forward Contract Loss is not Speculation Loss

Admittedly, the assessee is not a dealer in foreign exchange. For the purpose of hedging the loss due to fluctuation in foreign exchange while implementing the export contracts, the assessee had entered into forward contract with the banks. In some cases, the export could not be executed and the assessee had to pay certain charges to the Bank and  thereby incurred certain expenses. These expenses the  assessee claimed by way  of expenditure towards business. We do not find that  the transaction can be stated to  be  in speculation as to cover under sub-section (5)  of section 43 of the ...