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TMI Blog2018 (11) TMI 1735X X X X Extracts X X X X X X X X Extracts X X X X ..... - "1. Whether on the facts and in the circumstances of the case and in law, the CIT(A) has erred in holding that foreign exchange loss on underlying Forward Foreign Exchange Contracts has to be considered on capital account and hence, constitutes a capital loss even when such a contract is not a Capital Asset? 2. Whether on the facts and in the circumstances of the case and in law, the CIT(A) has erred in holding that foreign exchange loss on underlying Forward Foreign Exchange Contracts is not taxable under the head 'Income from other sources', even when Forward Foreign Exchange Contracts is neither a Capital Asset nor it is business of the assessee to enter into such contracts?" 3. The brief facts of the case are tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the head 'Income from other sources'. The Ld.CIT(A), after considering relevant submissions of the assessee and by following the decision of ITAT in assessee's own case for AY 2001-02 decided the issue in favour of the assessee and held that gain on forward foreign exchange contracts is taxable under the head 'capital gains'. Aggrieved by the order of CIT(A), the revenue is in appeal before us and the assessee has filed cross objection. 5. At the time of hearing, the Ld.AR for the assessee submitted that the issue involved in this appeal is squarely covered in favour of the assessee by series of decision of ITAT, Mumbai Benches in assessee's own case from AYs 2001-02 to 2009-10 wherein under similar set of facts and circumstances, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see's own case for A.Y. 2001-02 in ITA No. 4436/Mum2005 the Tribunal vide its order dated 21.12.2005 has held that income arising from forward foreign exchange contract is assessable under the head "Capital gains". The same view was reiterated by the Tribunal in assessee's own case for A.Y. 2007-08 in ITA No. 7044/Mum/2010 vide order dated 16.01.2013. Respectfully following the aforesaid decisions of the co-ordinate Bench, we hold that the gains arising from forward foreign exchange contract are assessable under the head "Capital gain" and not as "Income from other sources". Hence, grounds raised by the department on this issue are dismissed." 7. In this view of the matter and consistent with the view taken by the coordinate bench, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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