Tribunal held that the CIT (A) held\u00a0 that the assessee had entered into a forward contract to safeguard against the foreign exchange fluctuation on its revenue receipts from foreign parties. These transactions were in the nature of hedging transactions and they fall under the exempted category of speculative transactions u\/s 43(5)(a). The CIT(A) also held that the quantum of hedging was reasonable having regard to the export turnover and that it was actual loss which the assessee had incurred on account of cancellation of forward contracts entered with banks to safeguard realization of export proceeds.\u00a0 Order of Tribunal is affirmed\u00a0 (AY.\u00a0 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 43(5) : Speculative transaction-Foreign exchange fluctuation-Hedging-loss arising on forwards contract cancelled by the assessee prior to the date of settlement-Not speculative-Allowable as business loss. [S. 28(i), 43(5)(a)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-41790","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aS2","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=41790"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41790\/revisions"}],"predecessor-version":[{"id":41791,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41790\/revisions\/41791"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=41790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=41790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=41790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}