Hedging Transactions to Safeguard Loss arising out of Fluctuation in Foreign Currency not Speculative in Nature: ITAT [Read Order]

Hedging Transactions - Safeguard Loss - Fluctuation in Foreign Currency - Foreign Currency - Speculative in Nature - Income Tax - ITAT - taxscan

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), held that Hedging transactions to safeguard loss arising out of fluctuation in foreign currency are not speculative in nature. The assessee, PCL Foods Pvt. Ltd is engaged in the business of purchasing paddy, removing husk and bran layers there from, extracting rice from the purchased…

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