The assessee was engaged in the business of manufacture and trading of dress and other materials. The assessee sold such goods through export also. On such export sales, there was a possibility of the foreign remittances being delayed for a variety of reasons. The assessee would therefore be exposed to foreign exchange fluctuation risks. To protect itself or at least to minimise the risk, the assessee entered into contracts with the bank. The Assessing Officer was of the opinion that such hedging contracts were speculative in nature and the expenditure incurred in the process was not an allowable deduction. The Commissioner (Appeals) as well as the Tribunal reversed this decision. High Court affirmed the order of the Tribunal.