Ridhi Vincom Pvt. Ltd. Vs. ITO, Ward 4(1)
Parties Involved
Facts Summary
The assessee, Ridhi Vincom Pvt. Ltd., filed its return of income on 30.09.2013, declaring a total income of ₹55,320/-. The case was selected for scrutiny, and the assessee provided all required evidence to the Assessing Officer (AO). The AO disallowed a loss of ₹93,38,052/- incurred in future trading transactions in foreign exchange, treating it as a speculative loss. The assessee appealed this decision to the Commissioner of Income-tax (Appeals) [CIT(A)], who dismissed the appeal. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT), arguing that the loss was not speculative but covered under exceptions provided under Section 43(5)(d) of the Income Tax Act.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the loss of ₹93,38,052/- incurred in future trading transactions in foreign exchange is a speculative loss.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
8 precedents cited in this judgement.
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