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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 ..... 02 [2012 (12) TMI 1195 - ITAT MUMBAI ] has held that income arising from forward foreign exchange contract is assessable under the head Capital gains . Hence 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. - I.T.A No.6510/Mum/2016, C.O. 69/Mum/2018 (Arising out of I.T.A No.6510/Mum/2016) - - - Dated:- 16-11-2018 - Shri Pawan Singh (Judicial Member) And Shri G Manjunatha (Accountant Member) Assessee by Shri Madhur Agarwal Revdenue by Shri Abi Rama Kartikeyan ORDER G Manjunatha, AM : This appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he DRP against draft assessment order. Accordingly, the assessment has been completed u/s 143(3) r.w.s. 144C(3) of the Income-tax Act, 1961 determining total income at ₹ 9,38,11,065 interalia making addition towards gain on cancellation and rollover of forward foreign exchange contracts under the head Income from other sources as against assessee s claim of capital receipts being not taxable under the Act. 4. Aggrieved by the assessment order, assessee preferred appeal before the CIT(A). Before the CIT(A), assessee has stated that gain on forward foreign exchange contracts is neither taxable under the head capital gains nor under the head Income from business or profession because such receipts are capital in nature, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gain or under the head Income from other sources , is no longer res integra. The co-ordinate benches of ITAT in assessee s own case right from AY 2001-02 to AY 2009-10 had considered similar issue. The ITAT, in ITA No.5479/Mum/2014 for AY 2009-10 dated 24-03-2017 has considered similar issue and by following its earlier orders, held that gain derived from cancellation / roll over of forward foreign exchange contracts is to be treated as capital gain. The relevant portion of the order is extracted below:- 4. At the outset the learned AR submitted before us that the issue stands covered by the decision of the ITAT in assessee s own case for A.Y 200102, 2006-07 and 2007-08, wherein Tribunal has held that income arising from forwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... findings of Ld.CIT(A) and dismiss appeal filed by the revenue. CO No.69/Mum/2018 8. The assessee has filed cross objection by taking a ground that receipt on cancellation / roll over of forward foreign exchange contracts should be considered as capital receipts not exigible to tax in India. At the time of hearing, the Ld.AR for the assessee submitted that he did not want to press the cross objection as the matter has been decided in favour of the assessee. Hence, we dismiss the cross objection filed by the assessee as withdrawn. 9. In the result, appeal filed by the revenue and the cross objection filed by the assessee are dismissed. Order pronounced in the open court on 16th November, 2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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