PTC INDIA FINANCIAL SERVICES LTD,NEW DELHI vs. ADDL. CIT, SPECIAL RANGE- 7, NEW DELHI

ITA 6081/DEL/2019Status: HeardITAT Delhi21 December 2023AY 2015-16Bench: SHRI SAKTIJIT DEY (Vice President), SHRI N.K. BILLAIYA (Accountant Member)19 pages
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What did the Tribunal hold?

The Tribunal held that the foreign exchange fluctuation loss is an allowable expenditure, following its own previous decisions and the Supreme Court's ruling in CIT vs Woodward Governor India (P) Ltd. The Tribunal also upheld the Commissioner (Appeals)'s decision regarding depreciation on Windmill Turbine Generators and the disallowance under Section 14A.

What were the facts?

The assessee, a Non-banking Financial Company, claimed a foreign exchange fluctuation loss on External Commercial Borrowings and hedging contracts. The Assessing Officer disallowed this loss, treating it as notional. The Commissioner (Appeals) upheld this disallowance.

What were the issues?

Whether foreign exchange fluctuation loss on ECBs and hedging contracts is an allowable business expenditure. Whether depreciation on Windmill Turbine Generators is allowable.

Which sections of the Income-tax Act were involved?

Section 37,Section 36(1)(viii),Section 14A

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Cases cited in this judgment(2)Show list

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

Before: SHRI SAKTIJIT DEY, VICE- & SHRI N.K. BILLAIYA

Hearing: 21.12.2023Pronounced: 21.12.2023

PER SAKTIJIT DEY, VICE-PRESIDENT

Captioned cross appeals arise out of two separate orders of learned Commissioner of Income Tax (Appeals)-38, New Delhi,

pertaining to assessment years 2015-16 and 2016-17. Assessment Year : 2015-16

2.

Ground no. 1 is a general ground, hence, does not require

adjudication.

3.

In ground no. 2, the a

The order continues below.

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