Bs & B Safety Systems (India) Ltd., ... vs The Additional Cit, Chennai on 25 September, 2017
2.1 In view of the above facts, relying on the Hon'ble Madras High Court
decision in the case of Sri Ranga Vilas Ginning & Oil Mills v. CIT (1982) 133
ITR 85 which held that the loss on forward contract settled not by actual
delivery but by payment of differences as speculative business and the
decision of the Honorable ITAT, Bangalore 'A' Bench in the case of Assistant
Commissioner of Income-tax vs. K. Mohan & Co. (Exports) (P) Ltd. (2010) 39
DTR 97 wherein it was held that settlement of Forward contracts without
actual delivery of currency is a speculative transaction under section 43(5), the
AO held that the net loss of F.10,66,499/- claimed by the assessee towards
:-4-: I.T.A. No.2937/Mds/2016
cancellation of forward contract falls within the ambit of speculative business
which cannot be allowed to be set off against the normal business income as
per Sec.73 and allowed it to be carried forward for set off against any
speculation income that may arise in any succeeding financial years.