Foreign exchange loss while implementing export contract was not a speculative loss but a business loss

CIT Vs Quest Global Engineering Services Pvt. Ltd. (Karnataka High Court) Conclusion: Loss sustained by assessee due to fluctuation in foreign exchange while implementing export contract was incidental to assessee’s course of business, therefore, such a loss was not a speculative loss but a business loss. Held: Assessee had entered into forward contract with the bank to buy or sell foreign exchange at an agreed price at a specified future date in order to hedge against possible future financial loss due to fluctuation in the rate of foreign currency.  AO made the additions on the grou...