CIT v. Badridas Gauridu (P) Ltd.

261 ITR 256High Court2003#932 most cited

What is CIT v. Badridas Gauridu (P) Ltd. authority for?

Losses incurred from foreign exchange forward contracts or derivatives, entered into to hedge currency fluctuations in the course of regular business like exports, are treated as business losses and not as speculative transactions under Section 43(5). Such contracts, when incidental to business and cover exchange rate risks, constitute a business activity.

114

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Badridas Gauridu (P) Ltd. · Section 43(5) · speculative transaction · foreign exchange loss · forex forward contract · hedging transactions · business loss · export business · currency fluctuation loss · non-speculative activity

Also reported as

134 Taxmann 376

Sections most often in play

Section 43(5)Section 143(3)Section 10ASection 234BSection 234CSection 250Section 37(1)Section 115JB

Issues it is cited on

stpi unittest of enduring benefitsection 203speculative transactionconvertible foreign exchangesoftware technology parksection 43(5)section 10(2)speculation losssection 39scheme of arrangementdemerger

Judgments citing CIT v. Badridas Gauridu (P) Ltd.

Lupin Ltd., Mumbai vs. The Dy CIT, Circle-3(4), Mumbai

In the result, the appeal of the assessee in I

ITA 77/MUM/2021[2013-14]Status: DisposedITAT Mumbai18 Mar 2024AY 2013-14

Bench: Shri Pavan Kumar Gadale, Jm & Ms Padmavathy S, Am

For Appellant: Shri Rajan Vora, Shri PranayFor Respondent: Ms. Manju Thakur, Sr. DR
Section 10ASection 115JSection 143(3)Section 154Section 271(1)(c)Section 37(1)

…. Vinodkumar Diamonds (P.) Ltd. (supra), the Tribunal held the forward contract on facts before it to be speculative in nature in view of Section 43(5) of the Act. However, it appears that the decision of this court in CIT v. Badridas Gauridu (P.) Ltd. [2003] 261 ITR 256/[2004] 134 Taxman 376 (Mum.) was not brought to the notice of the Tribunal when it rendered its decision in S. Vinodkumar Diamonds (P.) Ltd. (supra). In the above case, this court has held that forward contract in foreign exchange when incidental to carrying on business of cotton exporter and done to cover up losses on account of differences in f…

Asstt. CIT -Circle-3(4), Mumbai vs. M/S. Lupin Ltd., Mumbai

In the result, the appeal of the assessee in I

ITA 1241/MUM/2021[2013-14]Status: DisposedITAT Mumbai18 Mar 2024AY 2013-14

Bench: Shri Pavan Kumar Gadale, Jm & Ms Padmavathy S, Am

For Appellant: Shri Rajan Vora, Shri PranayFor Respondent: Ms. Manju Thakur, Sr. DR
Section 10ASection 115JSection 143(3)Section 154Section 271(1)(c)Section 37(1)

…. Vinodkumar Diamonds (P.) Ltd. (supra), the Tribunal held the forward contract on facts before it to be speculative in nature in view of Section 43(5) of the Act. However, it appears that the decision of this court in CIT v. Badridas Gauridu (P.) Ltd. [2003] 261 ITR 256/[2004] 134 Taxman 376 (Mum.) was not brought to the notice of the Tribunal when it rendered its decision in S. Vinodkumar Diamonds (P.) Ltd. (supra). In the above case, this court has held that forward contract in foreign exchange when incidental to carrying on business of cotton exporter and done to cover up losses on account of differences in f…

Lupin Ltd., Mumbai vs. The Dy CIT, Circle-3(4), Mumbai

In the result, all the appeals of the assessee and revenue are treated as partly allowed

ITA 1921/MUM/2020[2010-11]Status: DisposedITAT Mumbai25 Jan 2024AY 2010-11

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

…IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “A” Bench, Mumbai. Before Shri B.R. Baskaran (AM) & Shri Pavan Kumar Gadale (JM) I.T.A. No. 1921/Mum/2020 (A.Y. 2010-11) I.T.A. No. 1922/Mum/2020 (A.Y. 2011-12) I.T.A. No. 1923/Mum/2020 (A.Y. 2012-13) C.O. No. 128/Mum/2021 (A.Y. 2010-11) C.O. No. 131/Mum/2021 (A.Y. 2011-12) C.O. No. 130/Mum/2021 (A.Y. 2012-13) Vs. DCIT, Circle-3(4) M/s. Lupin Limited 7th Floor, Kalpataru 29th Floor Inspire, Off Western Center 1, World Express Highway Trade Centre Santacruz East Cuffe Parade Mumbai-400 055. Mumbai-400 005. (Appellant) (Respondent) I.T.A. No. 394/Mum/2021 (A.Y. 2010-11…

Concentrix Services India Private Limited (Formerly Known As Minacs Private Limited, Minacs Limited & Adity Birla Minacs Worldwide Limited ), Mumbai vs. Joint Commissioner of It (OSD)10(2)(2)Assistant Commissioner of Income Tax-9(2)(2), Mumbai

ITA 5764/MUM/2017[2012-13]Status: DisposedITAT Mumbai18 Oct 2023AY 2012-13
For Appellant: Shri Yogesh TharFor Respondent: Shri Ajit Pal Singh Daia
Section 143(3)Section 144C(3)Section 92(1)Section 92B

…Assessee had claimed deduction for foreign exchange loss of INR 7,15,92,175/- booked by the Assessee as ‘Mark to Market’ loss. However, the Assessing Officer disallowed deduction for the same concluding as under: “8.6 In the case of Badridas Gauridu Pvt. Ltd. 261 ITR 256, the Hon'ble Bombay High Court had decided this issue in the favour of the assessee, however, the said judgement of the Hon'ble Bombay High Court was delivered on 22.01.2003. It was in the year 2010, the CBDT came with Instruction No.3 of 2010 dated 23.03.2010. In the said circular, CBDT has held as under: "Marked to Market Losses' & ITA No. 582…

Concentrix Services India Private Limited (Formerly Known As Minacs Private Limited, Minacs Limited & Adity Birla Minacs Worldwide Limited ), Mumbai vs. Deputy Commissioner of Income Tax-10(2)(2), Mumbai

ITA 5260/MUM/2017[2011-12]Status: DisposedITAT Mumbai18 Oct 2023AY 2011-12
For Appellant: Shri Yogesh TharFor Respondent: Shri Ajit Pal Singh Daia
Section 143(3)Section 144C(3)Section 92(1)Section 92B

…Assessee had claimed deduction for foreign exchange loss of INR 7,15,92,175/- booked by the Assessee as ‘Mark to Market’ loss. However, the Assessing Officer disallowed deduction for the same concluding as under: “8.6 In the case of Badridas Gauridu Pvt. Ltd. 261 ITR 256, the Hon'ble Bombay High Court had decided this issue in the favour of the assessee, however, the said judgement of the Hon'ble Bombay High Court was delivered on 22.01.2003. It was in the year 2010, the CBDT came with Instruction No.3 of 2010 dated 23.03.2010. In the said circular, CBDT has held as under: "Marked to Market Losses' & ITA No. 582…

Joint Commissioner of Income Tax, Special Range, Panaji vs. Goa Carbon Ltd., Panaji

In the result, both the appeals of the Revenue are allowed for statistical purposes

ITA 178/PAN/2019[2016-17]Status: DisposedITAT Panaji20 Sept 2023AY 2016-17

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhury(Through Virtual Hearing)

For Appellant: Shri Mihir NaniwadekarFor Respondent: Shri Prabhakar Anand DJ, DR
Section 37(1)

…allowable as a business expenditure under sec. 37(1) of the Act as held by the Hon’ble Supreme Court in the case of CIT Vs. Woodward Governor India P. Ltd., 312 ITR 254. Further, the Hon’ble Bombay High Court in the case of CIT Vs. Badridas Gauridu (P) Ltd., 261 ITR 256 has held that loss due to fluctuation in foreign exchange while implementing the export contracts was expenditure incurred towards the business of the assessee and allowable deduction under sec. 37(1) of the Act. Recently, the Chennai Bench of the Tribunal in the case of Majestic Exports Vs. JCIT in I.T.A.Nos. 1336 & 3072/MDS/2014 order dated 24/…

Joint Commissioner of Income Tax, Special Range, Panaji vs. Goa Carbon Ltd., Panaji

In the result, both the appeals of the Revenue are allowed for statistical purposes

ITA 177/PAN/2019[2013-14]Status: DisposedITAT Panaji20 Sept 2023AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhury(Through Virtual Hearing)

For Appellant: Shri Mihir NaniwadekarFor Respondent: Shri Prabhakar Anand DJ, DR
Section 37(1)

…allowable as a business expenditure under sec. 37(1) of the Act as held by the Hon’ble Supreme Court in the case of CIT Vs. Woodward Governor India P. Ltd., 312 ITR 254. Further, the Hon’ble Bombay High Court in the case of CIT Vs. Badridas Gauridu (P) Ltd., 261 ITR 256 has held that loss due to fluctuation in foreign exchange while implementing the export contracts was expenditure incurred towards the business of the assessee and allowable deduction under sec. 37(1) of the Act. Recently, the Chennai Bench of the Tribunal in the case of Majestic Exports Vs. JCIT in I.T.A.Nos. 1336 & 3072/MDS/2014 order dated 24/…

DCIT Central Circle 1(1), Chennai vs. Coastal Energy Pvt Ltd., Chennai

In the result, both the appeals filed by the assessee as well as Revenue are dismissed

ITA 1354/CHNY/2018[2009-10]Status: DisposedITAT Chennai06 Sept 2023AY 2009-10

Bench: Shri V. Durga Rao & Shri Manjunatha, G.आयकर अपील सं./I.T.A. No.1337/Chny/2018 िनधा"रण वष"/Assessment Year: 2009-10 M/S. Coastal Energy Pvt. Ltd., Vs. The Deputy Commissioner Of No. 4, Buharia Towers, 5Th Floor, Income Tax, Moores Road, Chennai 600 006. Corporate Circle 1(2), Chennai. [Pan:Aaacc4160A] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.1354/Chny/2018 िनधा"रण वष"/Assessment Year: 2009-10 The Deputy Commissioner Of Vs. M/S. Coastal Energy Pvt. Ltd., No. 4, Buharia Towers, 5Th Floor, Income Tax, Central Circle 1(1), Moores Road, Chennai 600 006. Chennai. (अपीलाथ"/Appellant) (""थ"/Respondent) Assessee By : Shri B. Ramakrishnan, Fca Department By : Shri R. Mohan Reddy, Cit सुनवाई की तारीख/ Date Of Hearing : 26.06.2023 घोषणा की तारीख /Date Of Pronouncement : 06.09.2023 आदेश /O R D E R Per V. Durga Rao: Both The Cross Appeals Filed By The Assessee As Well As Revenue Are Directed Against The Order Of The Ld. Commissioner Of Income Tax

For Appellant: Shri B. Ramakrishnan, FCAFor Respondent: Shri R. Mohan Reddy, CIT
Section 143(3)

…g the decision in the case of Araska Diamond P. Ltd. 152 ITD 203, and after following the judgments of Calcutta High Court in the case of Bengal & Assam Co. Ltd. v. CIT 227 CTR 399, and Bombay High Court judgment in the case of CIT v. Badridas Gauridu P. Ltd. 261 ITR 256, the Tribunal came to the conclusion that the transactions, which were prematurely cancelled, cannot be considered as business transaction and it is to be considered as speculative transaction. 49. This view has again been reiterated by the Chennai Bench of the ITAT in the case of Cotton Blossom India P. Ltd. v. JCIT (2016) 68 Taxman.com 38. Ther…

Coastal Energy Pvt Ltd., Chennai vs. DCIT Corporate Circle 1(2), Chennai

In the result, both the appeals filed by the assessee as well as Revenue are dismissed

ITA 1337/CHNY/2018[2009-10]Status: DisposedITAT Chennai06 Sept 2023AY 2009-10

Bench: Shri V. Durga Rao & Shri Manjunatha, G.आयकर अपील सं./I.T.A. No.1337/Chny/2018 िनधा"रण वष"/Assessment Year: 2009-10 M/S. Coastal Energy Pvt. Ltd., Vs. The Deputy Commissioner Of No. 4, Buharia Towers, 5Th Floor, Income Tax, Moores Road, Chennai 600 006. Corporate Circle 1(2), Chennai. [Pan:Aaacc4160A] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.1354/Chny/2018 िनधा"रण वष"/Assessment Year: 2009-10 The Deputy Commissioner Of Vs. M/S. Coastal Energy Pvt. Ltd., No. 4, Buharia Towers, 5Th Floor, Income Tax, Central Circle 1(1), Moores Road, Chennai 600 006. Chennai. (अपीलाथ"/Appellant) (""थ"/Respondent) Assessee By : Shri B. Ramakrishnan, Fca Department By : Shri R. Mohan Reddy, Cit सुनवाई की तारीख/ Date Of Hearing : 26.06.2023 घोषणा की तारीख /Date Of Pronouncement : 06.09.2023 आदेश /O R D E R Per V. Durga Rao: Both The Cross Appeals Filed By The Assessee As Well As Revenue Are Directed Against The Order Of The Ld. Commissioner Of Income Tax

For Appellant: Shri B. Ramakrishnan, FCAFor Respondent: Shri R. Mohan Reddy, CIT
Section 143(3)

…g the decision in the case of Araska Diamond P. Ltd. 152 ITD 203, and after following the judgments of Calcutta High Court in the case of Bengal & Assam Co. Ltd. v. CIT 227 CTR 399, and Bombay High Court judgment in the case of CIT v. Badridas Gauridu P. Ltd. 261 ITR 256, the Tribunal came to the conclusion that the transactions, which were prematurely cancelled, cannot be considered as business transaction and it is to be considered as speculative transaction. 49. This view has again been reiterated by the Chennai Bench of the ITAT in the case of Cotton Blossom India P. Ltd. v. JCIT (2016) 68 Taxman.com 38. Ther…

M/S Gimpex Pvt. Ltd., Chennai vs. ACIT, Central Circle-1(2), Chennai

Appeals stands dismissed

ITA 77/CHNY/2022[2012-13]Status: DisposedITAT Chennai09 Aug 2023AY 2012-13

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manomohan Das

For Appellant: Shri D. Anand (Advocate)-Ld. ARFor Respondent: Dr. R. Mohan Reddy,(CIT) –Ld. DR
Section 143Section 43(5)Section 43(5)(a)

…iled and therefore the assessee was held to be entitled to claim deduction in respect of the said amount as business loss". It will be beneficial to refer to the decision of the Bombay High court in the case of JTVs. Badridas Gauridu Pvt Ltd reported in(2003) 261 ITR 256]. In that case, the assessee was not a dealer in foreign exchange, but was an exporter of cotton as in the case before us. The assessee therein booked foreign exchange contracts, which were held to be only incidental to the assessee's regular course of business.” The Bombay High Court relied on the decision of the Calcutta High Court in the case…

DCIT, Central Circle 1(2), Chennai vs. M/S.Gimpex Limited, Chennai

Appeals stands dismissed

ITA 176/CHNY/2022[2012-13]Status: DisposedITAT Chennai09 Aug 2023AY 2012-13

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manomohan Das

For Appellant: Shri D. Anand (Advocate)-Ld. ARFor Respondent: Dr. R. Mohan Reddy,(CIT) –Ld. DR
Section 143Section 43(5)Section 43(5)(a)

…iled and therefore the assessee was held to be entitled to claim deduction in respect of the said amount as business loss". It will be beneficial to refer to the decision of the Bombay High court in the case of JTVs. Badridas Gauridu Pvt Ltd reported in(2003) 261 ITR 256]. In that case, the assessee was not a dealer in foreign exchange, but was an exporter of cotton as in the case before us. The assessee therein booked foreign exchange contracts, which were held to be only incidental to the assessee's regular course of business.” The Bombay High Court relied on the decision of the Calcutta High Court in the case…

Lupin Ltd., Mumbai vs. The Dy CIT, Circle-3(4), Mumbai

In the result, the appeal filed by the assessee and the revenue are treated as partly allowed

ITA 1920/MUM/2020[2009-10]Status: DisposedITAT Mumbai03 Feb 2023AY 2009-10

Bench: Shri B.R. Baskaran (Am) & Smt. Kavitha Rajagopal (Jm)

Section 115JSection 131Section 132(3)Section 132(4)Section 139(1)Section 143(1)Section 143(2)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI ‘A’ BENCH, MUMBAI. Before Shri B.R. Baskaran (AM) & Smt. Kavitha Rajagopal (JM) I.T.A. No. 1920/Mum/2020 (A.Y. 2009-10) C.O. No. 129/Mum/2021 (A.Y. 2009-10) Vs. DCIT, Circle-3(4) M/s. Lupin Limited 7th Floor, Kalpataru Inspire 29th Floor Off. Western Express Center 1, World Highway, Santacruz East Trade Centre Mumbai-400 055. Cuffee Parade Mumbai-400 005. (Appellant) (Respondent) I.T.A. No. 395/Mum/2021 (A.Y. 2009-10) Vs. M/s. Lupin Limited ACIT, Circle-3(4) 29th Floor 7th Floor, Kalpataru Inspire Center 1, World Off. Western Express Trade Centre Highway, Santacruz…

Sotc Travel Services P.Ltd, Mumbai vs. DCIT RG 3(3)(1), Mumbai

In the result, appeal by the assesse is allowed for statistical purpose

ITA 3656/MUM/2016[2009-10]Status: DisposedITAT Mumbai10 Oct 2022AY 2009-10

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Madhur Agrawal &For Respondent: Shri Chetan M. Kacha
Section 14Section 14ASection 250Section 254(1)Section 40

…in S. Vinodkumar Diamonds (P) Ltd (supra), the Tribunal held the forward contract on facts before it to be speculative in nature in view of Section 43(5) of the Act. However, it appears that the decision of this court in CIT v Badridas Gauridu (P) Ltd [2003] 261 ITR 256/[2004] 134 Taxman 376 (Mum.) was not brought to the notice of the Tribunal when it rendered its decision in S. Vinodkumar Diamonds (P) Ltd. (supra). In the above case, this court has held that forward contract in foreign exchange when incidental to carrying on business of cotton exporter and done to cover up losses on account of differences in fo…

DCIT Circle- 1, Thane vs. M/S Everest Industries Ltd, Delhi

In the result, appeal of the Revenue is partly

ITA 554/MUM/2020[2010-11]Status: DisposedITAT Mumbai29 Jul 2022AY 2010-11

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Sh Chaitanya Joshi &For Respondent: Shri Amol Kirtane, CIT-DR
Section 143(3)Section 250(6)Section 32(1)(iia)Section 43B

…s. In support of this contention, he 33 ITA.No.7791/Mum./2019 & ITA.No.554/Mum./2020 Everest Industries Limited, Noida. U.P. relied on several decisions of Hon’ble Jurisdictional Bombay High Court in the cases of CIT vs., Badridas Gauridu (P) Ltd., [2003] 261 ITR 256; CIT vs., D Chetan & Co. [2016] 75 taxmann.com 300; CIT vs., C.J. Exporters [2020] 121 taxmann.com 8 and other High Courts and Tribunals. 20. We have heard the rival submissions of both the parties and perused the material available on record. We find that the A.O. treated the swap loss arose on account of conversion of foreign exchange basic…

Everest Industrial Ltd., Noida vs. Dy CIT Circle-1, Thane

In the result, appeal of the Revenue is partly

ITA 7791/MUM/2019[2010-11]Status: DisposedITAT Mumbai29 Jul 2022AY 2010-11

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Sh Chaitanya Joshi &For Respondent: Shri Amol Kirtane, CIT-DR
Section 143(3)Section 250(6)Section 32(1)(iia)Section 43B

…s. In support of this contention, he 33 ITA.No.7791/Mum./2019 & ITA.No.554/Mum./2020 Everest Industries Limited, Noida. U.P. relied on several decisions of Hon’ble Jurisdictional Bombay High Court in the cases of CIT vs., Badridas Gauridu (P) Ltd., [2003] 261 ITR 256; CIT vs., D Chetan & Co. [2016] 75 taxmann.com 300; CIT vs., C.J. Exporters [2020] 121 taxmann.com 8 and other High Courts and Tribunals. 20. We have heard the rival submissions of both the parties and perused the material available on record. We find that the A.O. treated the swap loss arose on account of conversion of foreign exchange basic…

Deputy Commisssioner of Income Tax, Circle -1, Aurangabad vs. Endurance Technologies Pvt. Ltd, Aurangabad

Appeals are dismissed in above terms

ITA 1694/PUN/2017[2012-13]Status: DisposedITAT Pune15 Jul 2022AY 2012-13

Bench: Shri S.S.Godara, Jm & Shri Dr. Dipak P. Ripote, Am आयकर अपीऱ सं. / Ita No. 989/Pn/2015 ननधधारण वषा / Assessment Year : 2010-11

For Appellant: Shri Nikhil Pathak & Abhay A. AvchatFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 14ASection 154Section 43(5)Section 73(4)

…s—AO disallowed loss holding it as speculative in nature and therefore covered u/s 43(5)—CIT(A) confirmed order of AO—Tribunal reversed order of CIT(A) deleting disallowance relying on decision of Bombay High Court in case of CIT v. Badridas Gauridu (P) Ltd., 261 ITR 256— Held, Bombay High Court in case of Badridas Gaurida (P) Ltd., following decision of Calcutta High Court in case of Soorajmull Nagarmull held that expenditure would not be covered u/s 43(5) as speculative transaction—Foreign exchanges were only incidental to assessee's regular course of business and loss was thus not speculative loss but incident…

Deputu Commissioner of Income-Tax vs. Endurance Technologies Pvt. Ltd., Aurangabad

Appeals are dismissed in above terms

ITA 958/PUN/2016[2011-12]Status: DisposedITAT Pune15 Jul 2022AY 2011-12

Bench: Shri S.S.Godara, Jm & Shri Dr. Dipak P. Ripote, Am आयकर अपीऱ सं. / Ita No. 989/Pn/2015 ननधधारण वषा / Assessment Year : 2010-11

For Appellant: Shri Nikhil Pathak & Abhay A. AvchatFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 14ASection 154Section 43(5)Section 73(4)

…s—AO disallowed loss holding it as speculative in nature and therefore covered u/s 43(5)—CIT(A) confirmed order of AO—Tribunal reversed order of CIT(A) deleting disallowance relying on decision of Bombay High Court in case of CIT v. Badridas Gauridu (P) Ltd., 261 ITR 256— Held, Bombay High Court in case of Badridas Gaurida (P) Ltd., following decision of Calcutta High Court in case of Soorajmull Nagarmull held that expenditure would not be covered u/s 43(5) as speculative transaction—Foreign exchanges were only incidental to assessee's regular course of business and loss was thus not speculative loss but incident…

Assistant Commissioner of Income-Tax vs. Endurance Technologies Pvt. Ltd., Aurangabad

Appeals are dismissed in above terms

ITA 989/PUN/2015[2010-11]Status: DisposedITAT Pune15 Jul 2022AY 2010-11

Bench: Shri S.S.Godara, Jm & Shri Dr. Dipak P. Ripote, Am आयकर अपीऱ सं. / Ita No. 989/Pn/2015 ननधधारण वषा / Assessment Year : 2010-11

For Appellant: Shri Nikhil Pathak & Abhay A. AvchatFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 14ASection 154Section 43(5)Section 73(4)

…s—AO disallowed loss holding it as speculative in nature and therefore covered u/s 43(5)—CIT(A) confirmed order of AO—Tribunal reversed order of CIT(A) deleting disallowance relying on decision of Bombay High Court in case of CIT v. Badridas Gauridu (P) Ltd., 261 ITR 256— Held, Bombay High Court in case of Badridas Gaurida (P) Ltd., following decision of Calcutta High Court in case of Soorajmull Nagarmull held that expenditure would not be covered u/s 43(5) as speculative transaction—Foreign exchanges were only incidental to assessee's regular course of business and loss was thus not speculative loss but incident…

Orient Cement Limited, Kolkata vs. DCIT, Circle - 6(1), Kolkata

In the result, the appeal of the assessee is treated as partly allowed

ITA 1272/KOL/2018[2013-14]Status: DisposedITAT Kolkata16 Mar 2022AY 2013-14

Bench: Shri Sanjay Garg&Shri Girish Agrawali.T.A. No.1272/Kol/2018 Assessment Year: 2013-14 Orient Cement Ltd...................................................................…………………Appellant 9/1, R.N. Mukherjee Road, Kolkata-1. [Pan:Aabco5420A] Vs. Dcit, Circle-6(1), Kolkata…............…...........……………….....………..…..Respondent Appearances By: Shri Akkal Dudhwewala, Fca, Appeared On Behalf Of The Appellant. Shri Sallong Yaden, Addl. Cit, Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : February 08, 2022 Date Of Pronouncing The Order : March 16, 2022 Hearing Through Video Conferencing Order Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 14.05.2018 Of The Commissioner Of Income Tax (Appeals)-2, Kolkata [Hereinafter Referred To As ‘Cit(A)’]Passed U/S 250 Of The Income Tax Act(Hereinafter Referred To As The ‘Act’). The Assessee In This Appeal Has Taken The Following Grounds Of Appeal:

Section 143(3)Section 250Section 36Section 37

…S. Vinodkumar Diamonds (P.) Ltd. (supra), the Tribunal held the forward contract on facts before it to be speculative in nature in view of Section 43(5) of the Act. However, it appears that the decision of this court in CITv. BadridasGauridu (P.) Ltd. [2003] 261 ITR 256/[2004] 134 Taxman 376 (Mum.) was not brought to the notice of the Tribunal when it rendered its decision in S. Vinodkumar Diamonds (P.) Ltd. (supra). In the above case, this court has held that forward contract in foreign exchange when incidental to carrying on business of cotton exporter and done to cover up losses on account of differences in f…

DCIT Circle-2 (1)(2), Mumbai vs. M/S Foods and Inns Ltd., Mumbai

In the result, appeals filed by the Revenue are dismissed and cross objections filed by the assessee is allowed for statistical purpose

ITA 6862/MUM/2019[2015-16]Status: DisposedITAT Mumbai21 Feb 2022AY 2015-16

Bench: Shri Laliet Kumar, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Nitin KulkarniFor Respondent: Shri Achal Sharma
Section 14ASection 40Section 43(5)

…tretch of imagination can they be classified as 'speculative business’. 5.3.4 We find that the issue on hand is squarely covered in favour of the assessee by the decision of the Hon'ble Bombay High; Court in the case of CIT vs. BadridasGauridu (P) Ltd. (2003) 261 ITR 256 (Bom): "The assessee had entered into forward contracts with the Banks in respect of foreign exchange. Some of these contracts could not be honoured by the assessee for which it had to pay some amount which was debited to the P & L account. The assessee claimed the same as business loss being payment on account of cancellation of forward booking…