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 argued that such derivatives were traded through recognized stock exchange platforms & thus covered by the exception in Section 43(5)(d), which exc...