CIT v. Badridas Gauridu (P) Ltd.

Essel Propack Ltd, Mumbai vs. DCIT RG 6(2), Mumbai

In the result, appeal of the assessee is allowed whereas appeal of the Revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm M/S. Essel Propack Ltd., Vs. Dcit Rg 6(2) R.No.563, 5Th Floor Top Floor, Times Tower Kamala City, Aayakar Bhavan Senapati Bapat Marg Mumbai – 400 020 Lower Parel, Mumbai – 400013 Pan/Gir No.Aaace1568L Appellant) .. Respondent) Dcit Cir 6(3)(2) Vs. M/S. Essel Propack Ltd., R.No.522, 5Th Floor Top Floor, Times Tower Aayakar Bhavan Kamala City, Mumbai – 400 020 Senapati Bapat Marg Lower Parel, Mumbai – 400013 Pan/Gir No. Aaace1568L Appellant) .. Respondent) Assessee By Shri Madhur Agarwal & Shri Jay Bhansali Revenue By Shri V. Justin

…rdingly, transactions in security derivatives are subject to the provisions of S. 43(5). However, a currency cannot be termed as a commodity so as to attract the provisions of S. 43(5). Jurisdictional Bombay High Court in the case of Badridas Gauridu (P) Ltd. 261 ITR 256 has held that the assessee is not a dealer in foreign exchange but an exporter. In order to hedge against losses, the assessee had booked foreign exchange in forward market with the bank. The loss suffered by assessee on cancellation of such forward contracts is not speculative and loss is deductible as business loss. 13. We noted that similar is…

Arjav Diamonds (India) P.Ltd, Mumbai vs. Addl CIT 5(1), Mumbai

In the result, appeal of the assessee is allowed in part

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Arjav Diamonds (India) Pvt. Vs. Acit – 5(1), Mumbai Ltd., 314, Prasad Chambers, Opera House, Mumbai – 400 004 Pan/Gir No. Aagca2472D Appellant) .. Respondent)

…urpose of section 10B or not,……..‖ 5.5.4 On the other hand, we find that the issue in question is squarely covered in favour of the assessee from the following judgments of Hon‘ble Bombay and Gujarat High Courts: (i) CIT Vs. Badridas Gauridu (P) Ltd – (2003) 261 ITR 256 (Bom):…… (ii) CIT-III Vs. Panchmahal Steel Ltd (2013) 33 taxmann.com 10 (Guj)‖ Thus, the Bangalore bench of Tribunal has taken the view that the decision rendered by the co-ordinate bench in the case of K. Mohan & Co. (Exports) (supra) shall not be applicable to the facts considered by it. Accordingly, by following the two decision of Hon‘ble Bom…

ITO 16(2)(4), Mumbai vs. Surya Gems, Mumbai

The appeal of the Revenue is dismissed

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2009-10 Income Tax Officer-16(2)(4), M/S Surya Gems, बनाम/ 02Nd Floor, Matru Mandir, Flat No.4, 02Nd Floor, Tardeo Road, Bhaveshwar Sgar Patel Vs. Mumbai-400007 Compound 20 Napean Sea Road, Mumbai-400020 (याजस्व /Revenue) (यनधाारयती /Assessee) P.A. No. Aakfs6513Q याजस्व की ओर से / Revenue By Shri B.S. Bist-Dr यनधाारयती की ओर से / Assessee By None ुनवाई की तायीख / Date Of Hearing : 14/02/2017 आदेश की तायीख /Date Of Order: 08/03/2017

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ, ई, म ुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “E”, MUMBAI श्री जोगगन्दय स िंह, न्मायमक दस्म एवुं श्री एन. के. प्रधान, रेखा दस्म, के भक्ष Before Shri Joginder Singh, Judicial Member, and Shri N.K. Pradhan, Accountant Member Assessment Year: 2009-10 Income Tax Officer-16(2)(4), M/s Surya Gems, बनाम/ 02nd Floor, Matru Mandir, Flat No.4, 02nd Floor, Tardeo Road, Bhaveshwar Sgar Patel Vs. Mumbai-400007 Compound 20 Napean Sea Road, Mumbai-400020 (याजस्व /Revenue) (यनधाारयती /Assessee) P.A. No. AAKFS6513Q याजस्व की ओर से / Revenue by Shri B.S. Bist-DR यनधाारयती की ओ…

Asst CIT 16(3), Mumbai vs. Shree Balkrishna Exports, Mumbai

In the result, both the appeals filed by the Revenue and both the cross objections filed by the assessee are dismissed

Bench: Shri B.R. Baskaran (Am)& Shri Pawan Singh (Jm)

…IN THE INCOME TAX APPELLATE TRIBUNAL “E” Bench, Mumbai Before Shri B.R. Baskaran (AM)& Shri Pawan Singh (JM) I.T.A. No. 4185/Mum/2014 (Assessment Year 2009-10) I.T.A. No. 4186/Mum/2014 (Assessment Year 2010-11) ACIT 16(3) M/s. Shree Matru Mandir Vs. Balkrishna Exports 2nd Floor, R.No. 206 411, The Jewel Tardeo Road Tata Road No. 1 Mumbai-400 007. Opera House Mumbai-400 004. (Appellant) (Respondent) C.O. No. 207/Mum/2015 (Assessment Year 2009-10) C.O. No. 208/Mum/2015 (Assessment Year 2010-11) M/s. Shree ACIT 16(3) Balkrishna Exports Vs. Matru Mandir 2nd Floor, R.No. 206 411, The Jewel Tata Road No. 1 Tard…

DCIT 5(2), Mumbai vs. London Star Diamond Co. India P.Ltd, Mumbai

In the result, the appeal filed by the Revenue in ITA No

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 1359/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) The Deputy Commissioner Of London Star Diamond बनाम/ Income Tax 5(2) Company (India) Private V. Room No. 571, Aayakar Limited Bhawan, M K Road, Mumbai- 1610/1611 , 400 020 Prasad Chambers, Opera House, Mumbai-400 004 "थायी लेखा सं./Pan : Aaacl0576B .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

…latively. In large number of transactions, the cancellation of contracts was done only on the maturity and therefore, there are no speculative contracts. Assessee relied on the Bombay High Court judgment in the case of CIT v. Badridas Gauridu (P.) Ltd. [2003] 261 ITR 256 and Ors and mentioned that the said judgment applied to the case of the assessee. Regarding the AO's reliance on AAR Ruling in the case of Sopropha S.A. (supra), assessee submitted that considering the fact that the assessee fulfills couple of conditions and the impugned transactions must be treated as hedging transactions. Further, assessee reli…

JCIT 16(3), Mumbai vs. Shree Ramkrishna Export, Mumbai

In the result, the appeal filed by the assessee in ITA No

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 7311/Mum/2012 ("नधा"रण वष" / Assessment Year : 2009-10) M/S Shree Ramkrishna The Jt. Commissioner Of बनाम/ Exports Pvt. Ltd., Income Tax – 16(3), V. (Earlier Shree Ramkrishna Matru Mandir, Exports) Mumbai – 400 007. Ee 6011, Bharat Diamond Bourse, G Block, Bandra-Kurla Complex, Bandra East, Mumbai – 400 005. "थायी लेखा सं./Pan : Earlier Pan Aaafs6758D (Now Pan Aarcs2442Q) .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

…ing practice consistently . The assessee has relied upon the following decisions : (i) DCIT vs. Bank of Bahrain & Kuwait 132 TTJ 505 (Mumbai)(SB) (ii) Woodward Governor India (P) Ltd. 312 ITR 254(SC) (iii) ONGC 322 ITR 180(SC) (iv) Badridas Gauridu (P) Ltd. 261 ITR 256 (v) Soorajmul Nagarmull 129 ITR 169 (Cal.) The A.O. considered the submissions of the assessee and observed that the assessee has entered into forward foreign exchange contracts , which are outstanding as at the end of the previous year which has been valued by the assessee on the basis of rates applicable on the closing day of the previous year…

Shree Ramkrishna Export, Mumbai vs. Jtcit 16(3), Mumbai

In the result, the appeal filed by the assessee in ITA No

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 7311/Mum/2012 ("नधा"रण वष" / Assessment Year : 2009-10) M/S Shree Ramkrishna The Jt. Commissioner Of बनाम/ Exports Pvt. Ltd., Income Tax – 16(3), V. (Earlier Shree Ramkrishna Matru Mandir, Exports) Mumbai – 400 007. Ee 6011, Bharat Diamond Bourse, G Block, Bandra-Kurla Complex, Bandra East, Mumbai – 400 005. "थायी लेखा सं./Pan : Earlier Pan Aaafs6758D (Now Pan Aarcs2442Q) .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

…ing practice consistently . The assessee has relied upon the following decisions : (i) DCIT vs. Bank of Bahrain & Kuwait 132 TTJ 505 (Mumbai)(SB) (ii) Woodward Governor India (P) Ltd. 312 ITR 254(SC) (iii) ONGC 322 ITR 180(SC) (iv) Badridas Gauridu (P) Ltd. 261 ITR 256 (v) Soorajmul Nagarmull 129 ITR 169 (Cal.) The A.O. considered the submissions of the assessee and observed that the assessee has entered into forward foreign exchange contracts , which are outstanding as at the end of the previous year which has been valued by the assessee on the basis of rates applicable on the closing day of the previous year…

DCIT (Ltu) -1, Mumbai vs. Lupin Ltd, Mumbai

In the result, the appeal of the assessee and revenue are treated as allowed for statistical purposes

Bench: Shri B.R. Baskaran (Am) & Shri Sanjay Garg (Jm)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” Bench, Mumbai Before Shri B.R. Baskaran (AM) & Shri Sanjay Garg (JM) I.T.A. No. 7513/Mum/2014 (Assessment Year 2008-09) DCIT (Large Taxpayer)-1 M/s. Lupin Limited Centre 1, 29th Floor Vs. 159, C.S.T. Road World Trade Centre Kalina, Santacruz Cuffe Parade East Mumbai-40 005. Mumbai-400 098. (Appellant) (Respondent) I.T.A. No. 7274/Mum/2014 (Assessment Year 2008-09) M/s. Lupin Limited DCIT (Large 159, C.S.T. Road Vs. Taxpayer)-1 Centre 1, 29th Floor Kalina, Santacruz East World Trade Centre Mumbai-400 098. Cuffe Parade Mumbai-40 005. (Appellant) (Respondent) PAN No. AA…

DCIT 8(2), Mumbai vs. Hexaware Technologies Ltd, Navi Mumbai

In the result appeal filed by revenue is dismissed whereas Cross objection filed by assessee is allowed in part for statistical purposes

…ply to above loss which is incurred on cancellation of certain foreign exchange contracts. Reliance in this regard could be placed on the following decisions: • Voltas International Ltd v AClT (126 TTJ 702)(Mumbai Tribunal) • C/r vs. Badridas Gauridu {P} Ltd (261 ITR 256)(Bom HC) 5.16 The appellant argued that forex loss is not in the nature of speculative loss. The appellant mentioned that these transactions did not consider a separate and distinct business undertaken by the appellant. Further, the loss had arisen in the process of hedging activity which is not a continued activity or contemplated to be entered…

Asst CIT 16(3), Mumbai vs. K.P. Sanghvi & Sons, Mumbai

In the result, the appeal of the revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am The Asst. Commissioner Of Vs. M/S K P Sanghvi & Sons, Income Tax -16(3), Matru 1301, Prasad Chambers, Mandir, Tardeo Road, Operahouse,Mumbai-4 Mumbai-400007 Pan:Aaafk8390F .. Appellant Respondent Appellant By .. Sri R P Meena Respondent By .. Sri K Shivram Date Of Hearing .. 29-09-2016 Date Of Pronouncement .. 29 -09- 2016 O R D E R Per Mahavir Singh, Jm: This Appeal By The Revenue Is Arising Out Of The Order Of The Cit (Appeals)-27, Mumbai In Appeal No.Cit(A)-27/Ac-16(3)/135/13-14 Dated 22.4.2014. Assessment Was Framed By The Acit- Circle 16(3), Mumbai For The Assessment Year 2009-10 Vide His Order Dated 28.3.2013 U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter “The Act”).

…e has relied upon the decision of the Bangalore Benches of the Tribunal in the case of SAP Labs India (P.) v ACIT in ITA No.398iBangI02;in the case of Bombay Diamond Co Ltd. v. DCIT in ITA No.7488/Mum/07; in the case of c/r v. Badridas Gauridu (P.) Ltd. [2003]261 ITR 256 1[2004] 134 Taxman 376 (Bom). He has further submitted that the premium or discount arising at the 1nception of forward exchange contracts is amortized as expense or income over the life of contract. The exchange difference on such contract are recognized in the profit & loss account for the year in which the exchange rate changes resulting in th…

Mahendra Brothers Exports Pvt. Ltd., Mumbai vs. Addl. C.I.T.5(2), Mumbai

Appeal stands dismissed

Bench: Shri G S Pannu & Shri Amit Shukla

…AYs 2001- 02 to 2004-05, wherein Tribunal has decided this issue in favour, which now has been affirmed by the Hon’ble Bombay High Court also vide order dated 17.01.2011, following the decision of Bombay High Court in the case of Badridas Gauridu, reported in 261 ITR 256. He further submitted that, transactions are carried out as per the Foreign Management Act, 1999 as well as circular issued by the RBI. So far as allegation of the AO that, break-up of option and contracts and position on date of contract and cancellation has not been provided, he submitted that it is not correct observation, because the complete…

DCIT 5(2), Mumbai vs. Mahendra Brothers Exports P. Ltd, Mumbai

Appeal stands dismissed

Bench: Shri G S Pannu & Shri Amit Shukla

…AYs 2001- 02 to 2004-05, wherein Tribunal has decided this issue in favour, which now has been affirmed by the Hon’ble Bombay High Court also vide order dated 17.01.2011, following the decision of Bombay High Court in the case of Badridas Gauridu, reported in 261 ITR 256. He further submitted that, transactions are carried out as per the Foreign Management Act, 1999 as well as circular issued by the RBI. So far as allegation of the AO that, break-up of option and contracts and position on date of contract and cancellation has not been provided, he submitted that it is not correct observation, because the complete…

Asst CIT 15(1), Mumbai vs. R T Star Solitaires, Mumbai

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

Bench: Shri Joginder Singh & Shri Ashwani Tanejaassessment Year: 2009-10 Asst. Cit 15(1) R T Star Solitaires, R.No.104 Matru Mandir, 712M-A, Prasad बनाम/ 1St Floor, Tardeo Rd, Chambers, Tata Rd Vs. Mumbai-400007 No.2 Opera House, Mumbai-400004 (Assessee) (Revenue) P.A. No.Aagfr8565F Revenue By Capt. Pradeep S. Arya (Sr. Dr) Respondent By None 29/06/2016 सुनवाई क" तार"ख / Date Of Hearing : 22/07/2016 आदेश क" तार"ख /Date Of Order: आदेश / O R D E R Per Ashwani Taneja (): This Appeal Has Been Filed By The Revenue Against Order Of Ld. Commissioner Of Income Tax (Appeals) -26, Mumbai, {(In Short ‘Cit(A)’}, Passed Against Assessment Order U/S 143(3) Of The Act, For The A.Y 2009-10 On The Following Grounds:

…ers viz, banks; b) Further, Forex loss on cancellation of forward contracts is not a notional loss but it is an actual loss under section 37(1) of the Income tax Act, 1961 as held by Hon'ble Bombay High Court in the case of CIT Vs. Badridas Gauridu Pvt. Ltd., 261 ITR 256. c)As regards Mark to Market Loss (MTM loss) Appellant submits, whether on account of last year's entry or on account of revaluation of contracts pending at year end, as under : - i) It is only with an intention to mitigate the risk associated with business the appellant has entered into forward exchange contracts; ii) What needs to be seen is wh…

DCIT Cir. - 6(3), Mumbai vs. M/S. Metro Exporters P. Ltd., Mumbai

In the result, appeal filed by the assessee is allowed and the appeal of Revenue is partly allowed

Bench: Shri B.R. Baskaran & Shri Pawan Singh

…ion of exchange rate gain on forward contract entered into by the assessee, for the purpose of computation under Section 80HHC, to the file of the AO with a direction to follow the judgment of the Tribunal in the case of CIT V/so Badridas Gauridu (P) Limited (261 ITR 256) ? b) Whether; on the facts and in the circumstances of the case, the Tribunal was justified in upholding the order of CIT (A) in favour of the assessee company, the issue of exclusion of foreign exchange gain in respect of export profit from the export turnover for the purpose of computation under Section 80HHC of the Act ?" 2. In so far questio…