M/S KOHINOOR FOODS LTD.,DELHI vs. ACIT, NEW DELHI

ITA 1549/DEL/2016Status: DisposedITAT Delhi22 August 2025AY 2011-12Bench: SHRI PRAKASH CHAND YADAV (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal allowed the disallowance of forex derivative losses by following the High Court's decision. It also allowed the ground regarding notional interest on delayed receivables, stating the amendment to Section 92B was not applicable and no interest was charged from non-AEs.

What were the facts?

The assessee, engaged in food products, faced transfer pricing adjustments and other additions by the AO. These included disallowance of forex derivative losses, notional interest on loans and receivables, and corporate guarantee commission.

What were the issues?

Whether losses on forex derivatives are speculative and if notional interest on delayed receivables is an international transaction subject to transfer pricing adjustment.

Which sections of the Income-tax Act were involved?

Section 92B

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Cases cited in this judgment(7)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘H’: NEW DELHI

Before: SHRI PRAKASH CHAND YADAV & SHRI MANISH AGARWAL

For Appellant: Ms. Ananya Kapoor, Adv. &, Shri Utkarsh Gupta, Adv
For Respondent: Shri S.K. Jadhav, CIT-DR
Hearing: 31/07/2025Pronounced: 22/08/2025

PER PRAKASH CHAND YADAV, JM: Both these appeals of the assessee are arising from the order of Assessing Officer dated 02.02.2015 and 28.01.2016 and relates to Assessment Years 2011- 11 and 2011-12 respectively.

2.

Since, common issues are involved in these appeals, we are deciding these appeals by way of this consolidated order. We are taking Asst. Year 2010-11 as a lead year and discussing the facts of this year.

3.

Brief facts of the case as coming out from the order of authorities below are that assessee is a company and engaged in the business of processing and trading of rice and pulses and food produ

The order continues below.

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