What is CIT v. Badridas Gauridu (P) Ltd. authority for?

Losses incurred from foreign exchange forward contracts or derivatives, entered into to hedge currency fluctuations in the course of regular business like exports, are treated as business losses and not as speculative transactions under Section 43(5). Such contracts, when incidental to business and cover exchange rate risks, constitute a business activity.

How many judgments cite CIT v. Badridas Gauridu (P) Ltd.?

114 judgments on BharatTax cite CIT v. Badridas Gauridu (P) Ltd. (261 ITR 256), spanning 2015 to 2026.

Which sections of the Income Tax Act does CIT v. Badridas Gauridu (P) Ltd. come up under?

It is most often cited in judgments turning on Section 43(5), Section 143(3), Section 10A, Section 234B, Section 234C, Section 250.

CIT v. Badridas Gauridu (P) Ltd. (261 ITR 256)

HCL TECHNOLOGIES LTD.,NEW DELHI vs. ACIT, NEW DELHI

The appeal is allowed as indicated above

ITA 5465/DEL/2011[2007-08]Status: DisposedITAT Delhi15 Apr 2026AY 2007-08

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 10ASection 143Section 144Section 144C(13)

…in 268 ITR 37 (which contains the reference of CBDT Circular No. 23D dated 12/09/1960 which was issued in the context of Section 24(1) of the Income Tax Act, 1922) and judgement of Bombay High Court Commissioner Of Income-Tax vs Badridas Gauridu (P) Ltd 2003 261 ITR 256 (Bom) in support of its contention that all the underlying transactions of entering into the forward contracts with the Bankers and the subsequent utilization/pre-mature cancellation/unwinding of the underlying forward covers were carried out by the assessee in the normal course of its business only and the same were purely in the nature of hedgi…

HCL TECHNOLOGIES LTD,NEW DELHI vs. ACIT, NEW DELHI

The appeal is allowed as indicated above

ITA 5624/DEL/2010[2006-07]Status: DisposedITAT Delhi15 Apr 2026AY 2006-07

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 10ASection 143Section 144Section 144C(13)

…in 268 ITR 37 (which contains the reference of CBDT Circular No. 23D dated 12/09/1960 which was issued in the context of Section 24(1) of the Income Tax Act, 1922) and judgement of Bombay High Court Commissioner Of Income-Tax vs Badridas Gauridu (P) Ltd 2003 261 ITR 256 (Bom) in support of its contention that all the underlying transactions of entering into the forward contracts with the Bankers and the subsequent utilization/pre-mature cancellation/unwinding of the underlying forward covers were carried out by the assessee in the normal course of its business only and the same were purely in the nature of hedgi…

DY COMMISSIONER OF INCOME TAX- 2(1)(1) MUMBAI, MUMBAI vs. FOODS AND INNS LIMITED, MUMBAI

In the result, the appeal of the Revenue is dismissed

ITA 5657/MUM/2025[2017-18]Status: DisposedITAT Mumbai17 Nov 2025AY 2017-18

For Appellant: \nMs. N.V.Kulkarni,ARFor Respondent: \nMs. Kavitha Kaushik,(Sr. DR)

Section 115JSection 143(3)Section 43(5)

…of imagination\ncan they be classified as 'speculative business'.\n\n5.3.4 We find that the issue on hand is squarely covered in favour of\nthe assessee by the decision of the Hon'ble Bombay High; Court in the\ncase of CIT vs. Badridas Gauridu (P) Ltd. (2003) 261 ITR 256\n(Bom):\n\n\"The assessee had entered into forward contracts with the Banks in\nrespect of foreign exchange. Some of these contracts could not be\nhonoured by the assessee for which it had to pay some amount which\n\nPage | 6\nITA No. 5657/Mum/2025\nA.Y. 2017-18\nFoods and Inns Limited, Mumbai\n\nwas debited to the P & L account. The assessee cla…

DCIT, NEW DELHI vs. M/S FIEM INDUSTRIES LTD.,, NEW DELHI

In the result, the appeal of the revenue is dismissed

ITA 3696/DEL/2015[2011-12]Status: DisposedITAT Delhi08 Oct 2025AY 2011-12

Bench: Shri Vikas Awasthy & Shri M. Balaganeshdcit, Vs. M/S. Fiem Industries Ltd, Circle-9(1), D-34, Dsidc Packaging New Delhi Complex, Kirti Nagr, New Delhi-110015 (Appellant) (Respondent) Pan: Aaacf1034E Assessee By : Shri Shailesh Gupta, Ca Revenue By: Ms. Namita Khurana, Cit-Dr (On Rotational Duty) Date Of Hearing 13/07/2025 Date Of Pronouncement 08/10/2025

For Appellant: Shri Shailesh Gupta, CAFor Respondent: Ms. Namita Khurana, CIT-DR

Section 143(3)Section 43(5)Section 80I

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER DCIT, Vs. M/s. Fiem Industries Ltd, Circle-9(1), D-34, DSIDC Packaging New Delhi Complex, Kirti Nagr, New Delhi-110015 (Appellant) (Respondent) PAN: AAACF1034E Assessee by : Shri Shailesh Gupta, CA Revenue by: Ms. Namita Khurana, CIT-DR (on rotational duty) Date of Hearing 13/07/2025 Date of pronouncement 08/10/2025 O R D E R PER M. BALAGANESH, A. M.: The appeal in ITA No.3696/Del/2015 for AY 2011-12, arises out of the ld. 1. Commissioner of Income Tax (Appeals)-3, New Del…

DCIT, CC-7(2), MUMBAI vs. M/S. PATANJALI FOODS LTD.,( FORMERLY KNOWN AS RUCHI SOYA INDUSTRIES LTD,, MUMBAI

In the result the appeal filed by the revenue stands dismissed

ITA 1174/MUM/2023[2011-12]Status: DisposedITAT Mumbai17 Sept 2025AY 2011-12

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

Section 132Section 143(3)Section 153ASection 250Section 37(1)

…transaction." 13.5. I am inclined to agree with the appellant that the loss on foreign exchange derivatives contracts cannot be held as speculative in view of the decision of the Hon'ble Bombay High Court in the case of CIT vs Badridas Gauridu Pvt Ltd (2004) 134 Taxmann 376 and CIT vs D Chetan & Co (2016) 75 Taxmann.com 300 (Bom). 13.6. In view of above discussion and following the decision in the case of Perfect Circle India Ltd (supra), the A.O. is directed to allow the marked to market foreign exchange loss on derivatives, after verifying that the maturity of the hedge did not exceed the maturity of the under…

DCIT, CC-7(2), MUMBAI vs. M/S. PATANJALI FOODS LTD.,( FORMERLY KNOWN AS RUCHI SOYA INDUSTRIES LTD,, MUMBAI

In the result the appeal filed by the revenue stands dismissed

ITA 1173/MUM/2023[2011-12]Status: DisposedITAT Mumbai17 Sept 2025AY 2011-12

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

Section 132Section 143(3)Section 153ASection 250Section 37(1)

…transaction." 13.5. I am inclined to agree with the appellant that the loss on foreign exchange derivatives contracts cannot be held as speculative in view of the decision of the Hon'ble Bombay High Court in the case of CIT vs Badridas Gauridu Pvt Ltd (2004) 134 Taxmann 376 and CIT vs D Chetan & Co (2016) 75 Taxmann.com 300 (Bom). 13.6. In view of above discussion and following the decision in the case of Perfect Circle India Ltd (supra), the A.O. is directed to allow the marked to market foreign exchange loss on derivatives, after verifying that the maturity of the hedge did not exceed the maturity of the under…

DCIT CENTRAL CIRCLE 5 4, MUMBAI , MUMBAI vs. L AND T VALDEL ENGINEERING LIMITED, BANGALURU

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4767/MUM/2023[2011-12]Status: DisposedITAT Mumbai30 Oct 2024AY 2011-12