COMMISSIONER OF INCOME TAX DELHI-IV vs. HONEYWELL INTERNATIONAL (INDIA) PVT. LTD.

ITA - 95 / 2010HC Delhi03 February 20101 pages

For Petitioner: PC YADAV

AI SummaryDismissed

What did the High Court hold?

The High Court held that the issue of loss on account of foreign exchange fluctuation has already been decided by the Supreme Court in the case of CIT v. Woodward Governor India Private Limited: 312 ITR 254 (SC). In view of this binding precedent, the High Court found no reason to entertain the appeal filed by the Revenue. The ratio decidendi is that if a specific issue has been conclusively decided by the Supreme Court, subsequent appeals on the same issue by subordinate authorities or lower courts should be dismissed in accordance with the Supreme Court's ruling. The operative direction was the dismissal of the appeal. No issue was expressly left undecided.

What were the facts?

The Revenue, Commissioner of Income Tax Delhi-IV, filed an appeal against the order of the Income Tax Appellate Tribunal (ITAT) in ITA 1359/Del/2007. This order pertained to the assessment year 2003-2004 and concerned the issue of loss arising from foreign exchange fluctuation. The ITAT had decided this issue against the Revenue. The appeal was filed with a delay, which was condoned by the High Court. The assessee, Honeywell International (India) Pvt. Ltd., was represented by None.

What were the issues?

1. Whether the High Court should decide the appeal on the issue of loss on account of foreign exchange fluctuation, given that the Supreme Court has already ruled on this matter. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the High Court's decision implies that the assessee would likely rely on the Supreme Court's ruling. Revenue's Contention: The Revenue filed the appeal against the ITAT's order which was against them on the issue of foreign exchange fluctuation loss. They are challenging the ITAT's decision. The Revenue relies on the Supreme Court's decision in CIT v. Woodward Governor India Private Limited: 312 ITR 254 (SC) to support their dismissal of the appeal.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI ITA 95/2010 . COMMISSIONER OF INCOME TAX DELHI-IV ..... Appellant Through : Mr N. P. Sahni . versus . HONEYWELL INTERNATIONAL (INDIA) PVT. LTD ..... Respondent Through : None CORAM: HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE SIDDHARTH MRIDUL . O R D E R 03.02.2010 CM 1131/2010 The delay in re-filing the appeal is condoned. This application stands disposed of. ITA 95/2010 This appeal by the revenue against the order of the Income Tax Appellate Tribunal in ITA 1359/Del/2007 dated 25.04.2008 in relation to the assessment year 2003-2004, deals with the question of loss on account of foreign exchange fluctuation. The said issue has been decided against the revenue by the Supreme Court in the case of CIT v. Woodward Governor India Private Limited: 312 ITR 254 (SC). In view of the said decision, the appeal is dismissed. . BADAR DURREZ AHMED, J . . . SIDDHARTH MRIDUL, J FEBRUARY 03, 2010 SR . 22

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