Adani Enterprises Ltd. v. ACIT

55 Taxmann.com 375Reported decision2015#10670 most cited

What is Adani Enterprises Ltd. v. ACIT authority for?

Losses incurred by an assessee in currency swap contracts, used for working capital loans essential to its import/export business, are allowable business losses and not speculative losses. Section 43(5) of the Income-tax Act, 1961, does not apply to currencies, allowing such losses to be set off against other income.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2022.

Also referred to as

Adani Enterprises Ltd. v. ACIT · 55 Taxmann.com 375 · Section 43(5) · currency swap contract · speculative loss · business loss · working capital · import export business

Sections most often in play

Section 115JBSection 145Section 14ASection 37(1)

Judgments citing Adani Enterprises Ltd. v. ACIT

DCIT, Circle-1(1)(1), Ahmedabad vs. Adani Petronet (Dahej) Port Pvt. Ltd, Ahmedabad

In the result, the appeal of the Revenue for AY 2014-15 and CO of the assessee for AY 2013-14 are treated as partly allowed

ITA 2045/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad31 May 2022AY 2014-15

Bench: Shri P.M. Jagtap, Vice- & Shri Siddhartha Nautiyalassessment Year : 2012-13 Adani Petronet (Dahej) Port The Dy. Commissioner Of Pvt. Ltd., Vs Income-Tax, 9Th Floor, Shikhar Building, Circle 1(1)(1), Nr. Mithakali Circle, Ahmedabad Navrangpura, Ahmedabad-380009 Pan: Aaeca 5046 R Assessment Year : 2012-13 The Dy. Commissioner Of Adani Petronet (Dahej) Port Income-Tax, Vs Pvt. Ltd., Circle 1(1)(1), Ahmedabad-380009 Ahmedabad Pan: Aaeca 5046 R

For Appellant: Shri Vartik Chokshi, AR &For Respondent: Shri Mudit Nagpal, CIT-DR
Section 14A

…chart(supra) in its written submission which show that from AY 2015-16 to 2017-18, appellant has earned M2M gain for Rs 94.37 crore and such gain has been offered to tax. 4.6 It is observed that Hon'ble Ahmedabad ITAT in the case of Adani Enterprises Limited 55 Taxmann.com 375(2015), group case of appellant has held that "Where assessee company has entered into currency swap contracts for working capital loans which was pre-requisite for its business of export and import of commodities, loss incurred in said contract being in respect of circulating/working capital is allowable business loss". It is also observed…

The Dy.Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad vs. Adani Petronet( Dahej) Port Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue for AY 2014-15 and CO of the assessee for AY 2013-14 are treated as partly allowed

ITA 1792/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad31 May 2022AY 2013-14

Bench: Shri P.M. Jagtap, Vice- & Shri Siddhartha Nautiyalassessment Year : 2012-13 Adani Petronet (Dahej) Port The Dy. Commissioner Of Pvt. Ltd., Vs Income-Tax, 9Th Floor, Shikhar Building, Circle 1(1)(1), Nr. Mithakali Circle, Ahmedabad Navrangpura, Ahmedabad-380009 Pan: Aaeca 5046 R Assessment Year : 2012-13 The Dy. Commissioner Of Adani Petronet (Dahej) Port Income-Tax, Vs Pvt. Ltd., Circle 1(1)(1), Ahmedabad-380009 Ahmedabad Pan: Aaeca 5046 R

For Appellant: Shri Vartik Chokshi, AR &For Respondent: Shri Mudit Nagpal, CIT-DR
Section 14A

…chart(supra) in its written submission which show that from AY 2015-16 to 2017-18, appellant has earned M2M gain for Rs 94.37 crore and such gain has been offered to tax. 4.6 It is observed that Hon'ble Ahmedabad ITAT in the case of Adani Enterprises Limited 55 Taxmann.com 375(2015), group case of appellant has held that "Where assessee company has entered into currency swap contracts for working capital loans which was pre-requisite for its business of export and import of commodities, loss incurred in said contract being in respect of circulating/working capital is allowable business loss". It is also observed…

The Dy.Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad vs. Adani Petronet( Dahej) Port Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue for AY 2014-15 and CO of the assessee for AY 2013-14 are treated as partly allowed

ITA 1470/AHD/2018[2012-13]Status: DisposedITAT Ahmedabad31 May 2022AY 2012-13

Bench: Shri P.M. Jagtap, Vice- & Shri Siddhartha Nautiyalassessment Year : 2012-13 Adani Petronet (Dahej) Port The Dy. Commissioner Of Pvt. Ltd., Vs Income-Tax, 9Th Floor, Shikhar Building, Circle 1(1)(1), Nr. Mithakali Circle, Ahmedabad Navrangpura, Ahmedabad-380009 Pan: Aaeca 5046 R Assessment Year : 2012-13 The Dy. Commissioner Of Adani Petronet (Dahej) Port Income-Tax, Vs Pvt. Ltd., Circle 1(1)(1), Ahmedabad-380009 Ahmedabad Pan: Aaeca 5046 R

For Appellant: Shri Vartik Chokshi, AR &For Respondent: Shri Mudit Nagpal, CIT-DR
Section 14A

…chart(supra) in its written submission which show that from AY 2015-16 to 2017-18, appellant has earned M2M gain for Rs 94.37 crore and such gain has been offered to tax. 4.6 It is observed that Hon'ble Ahmedabad ITAT in the case of Adani Enterprises Limited 55 Taxmann.com 375(2015), group case of appellant has held that "Where assessee company has entered into currency swap contracts for working capital loans which was pre-requisite for its business of export and import of commodities, loss incurred in said contract being in respect of circulating/working capital is allowable business loss". It is also observed…

Adani Petronet( Dahej) Port Pvt. Ltd., Ahmedabad vs. The Dy.Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad

In the result, the appeal of the Revenue for AY 2014-15 and CO of the assessee for AY 2013-14 are treated as partly allowed

ITA 1398/AHD/2018[2012-13]Status: DisposedITAT Ahmedabad31 May 2022AY 2012-13

Bench: Shri P.M. Jagtap, Vice- & Shri Siddhartha Nautiyalassessment Year : 2012-13 Adani Petronet (Dahej) Port The Dy. Commissioner Of Pvt. Ltd., Vs Income-Tax, 9Th Floor, Shikhar Building, Circle 1(1)(1), Nr. Mithakali Circle, Ahmedabad Navrangpura, Ahmedabad-380009 Pan: Aaeca 5046 R Assessment Year : 2012-13 The Dy. Commissioner Of Adani Petronet (Dahej) Port Income-Tax, Vs Pvt. Ltd., Circle 1(1)(1), Ahmedabad-380009 Ahmedabad Pan: Aaeca 5046 R

For Appellant: Shri Vartik Chokshi, AR &For Respondent: Shri Mudit Nagpal, CIT-DR
Section 14A

…chart(supra) in its written submission which show that from AY 2015-16 to 2017-18, appellant has earned M2M gain for Rs 94.37 crore and such gain has been offered to tax. 4.6 It is observed that Hon'ble Ahmedabad ITAT in the case of Adani Enterprises Limited 55 Taxmann.com 375(2015), group case of appellant has held that "Where assessee company has entered into currency swap contracts for working capital loans which was pre-requisite for its business of export and import of commodities, loss incurred in said contract being in respect of circulating/working capital is allowable business loss". It is also observed…

DCIT, Cir-1(1)(1), Ahmedabad vs. Adani Power Maharashtra Ltd., Ahmedabad

In the result, the appeal filed by the Revenue is dismissed

ITA 1471/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad17 Mar 2021AY 2014-15

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedआयकर अपील सं./Ita No. 1471/Ahd/2018 "नधा"रण वष"/Asstt. Year: 2014-2015 D.C.I.T., Adani Power Maharashtra Ltd., Cir.1(1)(1), Vs. 9Th Floor, Shikhar Building, Ahmedabad. Nr.Mithakhali Circle, Navrangpura, Ahmedabad-380009. Pan: Aagca4102J

For Appellant: Shri S.N. Soparkar, Sr.Advocate with Shri Parin Shah, A.RFor Respondent: Shri Mohd. Usman, CIT.D.R
Section 36(1)(Hi)Section 37(1)

…43 crores and such gain has been offered to tax. Further, Appellant has also earned swap realized gain for Rs.37.91 crores in A. Y. 2015-16 which is also offered to tax 3.6. It is observed that Hon'ble Ahmedabad ITAT in the case of Adani Enterprises I Limited 55 Taxmann.com 375(2015), group case of appellant has held that "Where assessee company has entered into currency swap contracts for working capital loans which was pre- requisite for its business of export and imp 311 of commodities, loss incurred in said contract being in respect of circulating/working capital is allowable business loss". It is also observ…

Rajendra Ship Breakers Pvt. Ltd., Ahmedabad vs. The Jt.CIT, Bhavnagar Range- I, Bhavnagar

In the result, appeal filed by the department is dismissed

ITA 1157/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad01 Jan 2019AY 2009-10

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedआयकर अपील सं./Ita No. 1157/Ahd/2014 ("नधा"रण वष"/Assessment Year : 2009-10)

For Appellant: Shri B.R. Popat, ARFor Respondent: Shri L.P. Jain, Sr.DR

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER And SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 1157/Ahd/2014 ("नधा"रण वष"/Assessment Year : 2009-10) Rajendra Ship Breakers The Joint बनाम/ Pvt.Ltd. Commissioner of Vs. D-79, Near Ram Mantra Income=tax Mandir,Kalvibid, Bhavnagar Bhavngar Range-1 Bhavnagar "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AABCR 0105 P .. (अपीलाथ"/Appellant) (""यथ" / Respondent) अपीलाथ" ओर से/ Appellant by : Shri B.R. Popat, AR ""यथ" क" ओर से/Respondent by: Shri L.P. Jain, Sr.DR 27/11/2018 सुनवाई क" तार"ख/ Date of Heari…

ACIT, Bangalore vs. M/S K. Mohan & Company (Exports) Pvt. Ltd., Bangalore

In the result, ITA 1057/B/12 is partly allowed and ITA 1103/B/12 is dismissed

ITA 1103/BANG/2012[2008-09]Status: DisposedITAT Bangalore24 Apr 2015AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri V. Srinivasan, C.AFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 10BSection 10B(3)

…endered by the Tribunal in the case of Assessee K. Mohan & Co. for AY 06-07 pale into insignificance as the decision of the Hon’ble High Court has to be followed. The claim of the Assessee was accordingly upheld. (iv) Adani Enterprises Ltd. Vs. ACIT (2015) 55 Taxmann.com 375 (Ahd.- Trib): In this case it was held that Sec.43(5) of the Act do not apply to currencies and therefore loss incurred by Assessee in currency swap contract cannot be denied to be set off against other heads of income taking it as speculative loss. 28. As can be seen from the above decisions referred to by the learned counsel for the As…

M/S K. Mohan & Company (Exports) Private Limited, Bangalore vs. ACIT, Bangalore

In the result, ITA 1057/B/12 is partly allowed and ITA 1103/B/12 is dismissed

ITA 1057/BANG/2012[2008-09]Status: DisposedITAT Bangalore24 Apr 2015AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri V. Srinivasan, C.AFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 10BSection 10B(3)

…endered by the Tribunal in the case of Assessee K. Mohan & Co. for AY 06-07 pale into insignificance as the decision of the Hon’ble High Court has to be followed. The claim of the Assessee was accordingly upheld. (iv) Adani Enterprises Ltd. Vs. ACIT (2015) 55 Taxmann.com 375 (Ahd.- Trib): In this case it was held that Sec.43(5) of the Act do not apply to currencies and therefore loss incurred by Assessee in currency swap contract cannot be denied to be set off against other heads of income taking it as speculative loss. 28. As can be seen from the above decisions referred to by the learned counsel for the As…

M/S. K. Mohan & Company (Exports) Pvt. Ltd., Bangalore vs. ACIT, Bangalore

In the result, ITA 1057/B/12 is partly allowed and ITA 1103/B/12 is dismissed

ITA 1266/BANG/2010[2007-08]Status: DisposedITAT Bangalore24 Apr 2015AY 2007-08

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri V. Srinivasan, C.AFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 10BSection 10B(3)

…endered by the Tribunal in the case of Assessee K. Mohan & Co. for AY 06-07 pale into insignificance as the decision of the Hon’ble High Court has to be followed. The claim of the Assessee was accordingly upheld. (iv) Adani Enterprises Ltd. Vs. ACIT (2015) 55 Taxmann.com 375 (Ahd.- Trib): In this case it was held that Sec.43(5) of the Act do not apply to currencies and therefore loss incurred by Assessee in currency swap contract cannot be denied to be set off against other heads of income taking it as speculative loss. 28. As can be seen from the above decisions referred to by the learned counsel for the As…

M/S K. Mohan & Compnay (Exports) Pvt. Ltd., Bangalore vs. ACIT, Bangalore

In the result, ITA 1057/B/12 is partly allowed and ITA 1103/B/12 is dismissed

ITA 1093/BANG/2009[2006-07]Status: DisposedITAT Bangalore24 Apr 2015AY 2006-07

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri V. Srinivasan, C.AFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 10BSection 10B(3)

…endered by the Tribunal in the case of Assessee K. Mohan & Co. for AY 06-07 pale into insignificance as the decision of the Hon’ble High Court has to be followed. The claim of the Assessee was accordingly upheld. (iv) Adani Enterprises Ltd. Vs. ACIT (2015) 55 Taxmann.com 375 (Ahd.- Trib): In this case it was held that Sec.43(5) of the Act do not apply to currencies and therefore loss incurred by Assessee in currency swap contract cannot be denied to be set off against other heads of income taking it as speculative loss. 28. As can be seen from the above decisions referred to by the learned counsel for the As…

Adani Enterprises Ltd. v. ACIT (55 Taxmann.com 375) — Cited in 10 Judgments | BharatTax