9911796707
TMI Blog2017 (3) TMI 1797X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the learned CIT(A) in holding that gain on cancellation of forward foreign exchange contracts is to be treated as capital gain. 3. Briefly, the facts are that the assessee is a non-resident company. For the assessment year under consideration, the assessee filed its return of income on 26.09.2009 declaring total income of Rs. 12,63,199/-. During the assessment proceedings, the AO from the return of income as well as accompanying statements found that though the assessee, in the relevant previous year, has made gains of Rs. 21,72,55,371/- on cancellation of forward foreign exchange contract however, had not offered them to tax on the plea that such receipts are in the nature of capital receipt and hence, not chargeable to tax. The AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 2007-08, wherein Tribunal has held that income arising from forward exchange contract is assessable under the head capital gain. The learned DR fairly agreed with the aforesaid submissions of the assessee. 5. We have considered the submissions of the parties and perused the material on record. As could be seen from the material on record, the only issue in dispute between the parties is in relation to the status of gain derived from the forward foreign exchange contract, whether to be assessed as capital gain or income from other sources. Undisputedly, this is a recurring dispute between the assessee and the department from earlier assessment years and in assessee's own case for A.Y. 2001-02 in ITA No. 4436/Mum2005 the Tribunal vide its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame as infructuous. While deciding the department's appeal in the earlier part of this order, we have upheld the decision of the CIT(A) in treating the gain arising from forward foreign exchange contract to be assessable under the head "Capital Gain". Consequentially, the assessee is entitled to set off such gain against brought forward capital loss as per the relevant statutory provisions. We, therefore, direct the AO to verify assessee's claim by examining the material on record and allow consequential relief to the assessee. This ground is allowed for statistical purpose. 9. In the result, the department's appeal is dismissed and the assessee's cross-objection is partly allowed for statistical purpose. Order pronounced in the open co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
