Retracted Statement Doesn’t Justify Treating Currency Derivative Loss as Bogus

DCIT Vs Delight Suppliers Pvt. Ltd. (ITAT Kolkata) Currency derivative loss cannot be treated as Bogus on the basis of retracted statement with no corroborative evidence and ITAT allows benefit of safe harbour rule of 5% under 3rd proviso to Section 50C. The case of DCIT Vs Delight Suppliers Pvt. Ltd. before the Income Tax Appellate Tribunal (ITAT) Kolkata for the Assessment Year 2012-13 involves intricate issues concerning currency derivative losses and the application of statutory provisions related to capital gains. Analysis: Bogus Loss on Currency Derivatives: The Revenue contended that th...