This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Loss from Hedging Contracts of Foreign Exchange is Normal Business Loss
Case Law Details
- Case Name
- M/s ITT Shipping Pvt. Ltd. Vs Pr. CIT-3 (ITAT Kolkata)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All ITAT, ITAT Kolkata
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
M/s ITT Shipping Pvt. Ltd. Vs Pr. CIT (ITAT Kolkata)
When the assessee is not dealer in foreign exchange and as a part of his normal business activity, enters into hedging contracts of foreign exchange, the loss in question is normal business loss and cannot be held a “Speculation Loss” as covered by Section 43(5) of the Act. The Vishakhapatnam Bench of the ITAT in the case of DCIT, Circle-1(2), vs. B Enterprise Pvt. Ltd. reported in (2017) 80 Taxman 362 (Vishakhapatnam Trib.) at para 16 and 17 held as follows:
“16. The next issue that came up for our consideration for the assessment yea...
