Loss on forward contracts allowed as business loss

ACIT Vs Gimpex Pvt Ltd (ITAT Chennai) ITAT Chennai held that actual loss arisen on account of cancellation of the forward contracts entered into with the banks to safeguard realization of export proceeds is allowable as business loss. Facts- The assessee being resident corporate assessee is stated to be engaged in manufacturing / export of mineral ores. During assessment proceedings, it transpired that the assessee suffered loss on forward exchange contracts. The Ld. AO held that such transactions are covered under the scope of Sec. 43(5)(a) since the transactions have ultimately been settled ...