ITAT Kolkata Holds Forex Derivative Loss is NOT Speculative – Allowed as Normal Business Loss

Ridhi Vincom Pvt. Ltd. Vs ITO (ITAT Kolkata)

Assessee incurred a loss of ₹93,38,052/- from trading in currency derivatives (foreign exchange futures) & debited it to the Profit & Loss account. The AO treated it as speculative loss u/s 43(5) & disallowed set-off. CIT(A) confirmed the disallowance, alleging lack of documentary evidence & holding that forex trading prior to amendment was speculative.

Before the Tribunal, Assessee ar

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