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On 1 January 20X9, ZL entered into a forward contract for the purchase of raw materials to be used in its business to guard against
On 1 January 20X9, ZL entered into a forward contract for the purchase of raw materials to be used in its business to guard against loss through price fluctuations. On the date of maturity of the forward contract, ZL did not take the delivery of the raw materials but the contract was settled by making a payment of Rs. 500,000.Required: Explain the taxability of the above transactions
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