The Income Tax Appellate Tribunal (ITAT) delivered a decision dated 27 July 2012 in the case of Credit Suisse (Singapore) Ltd (ITA No. 8716/Mum/2010) and held that gains earned on cancellation of foreign exchange forward contract are not taxable in India.
(a) Facts. The Taxpayer (i.e. Credit Suisse (Singapore) Ltd) was a company incorporated in and a tax resident of Singapore. It conducted portfolio investments in Indian securities and was registered with the Securities and Ex…