Loss suffered on account of forex derivative contracts (Exotic Cross Currency Option Contracts cannot be treated as speculative loss to the extent that the derivative transactions are not more than the total export turnover of the assessee. If the derivative transaction is in excess of export turnover, the loss in respect of that portion of excess transactions has to be considered as speculative loss because the excess derivative transaction has no proximity with export turnover

M/s. Majestic Exports vs. JCIT (ITAT Chennai)July 24, 2015 (Date of pronouncement)