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 Exchange Board of India (SEBI) as a sub-account of the Taxpayer, also referred to as a SEBI registered Foreign Institutional Investor (FII). In computing its income, the...