Tuesday, August 16, 2016

Hedging loss suffered by assessee to be allowed as business loss.

ITAT Mumbai bench held that where assessee engaged in manufacture and export of processed food products, in order to safeguard itself against fluctuations in exchange rates of foreign currency, entered into foreign exchange forward contracts with banks against confirmed export order, hedging loss suffered by assessee in respect of said forward contracts was to be allowed as business loss.

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