CIT v. K. Mohan

130 TTJ 719Income Tax Appellate Tribunal2010#8729 most cited

What is CIT v. K. Mohan authority for?

Forward contracts entered into to safeguard against future fluctuations in foreign exchange rates are incidental to business and not speculative, provided there is no actual delivery of foreign exchange. However, if the nature of forward contracts is speculative, the profits derived therefrom are speculative gains and not business income, even if the Assessing Officer initially treated them as such.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2019 to 2024.

Also referred to as

CIT v. K. Mohan · 130 TTJ 719 · forward contracts · foreign exchange · speculative transaction · business income · incidental to business · actual delivery

Sections most often in play

Section 10ASection 37Section 37(1) of the Income Tax ActSection 43(5)Section 10A of the Income Tax ActSection 194J of the Income Tax ActSection 37(1)Section 43(5) of the Income Tax Act

Issues it is cited on

stpi unittest of enduring benefitsection 203convertible foreign exchangesoftware technology parksection 10(2)section 39speculative transactionscheme of arrangementdemergerinfrastructure facilitysection 194j

Judgments citing CIT v. K. Mohan

DCIT Central Circle 5 4, Mumbai vs. L and T Valdel Engineering Limited, Bangaluru

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4767/MUM/2023[2011-12]Status: DisposedITAT Mumbai30 Oct 2024AY 2011-12

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

DCIT Central Circle 5(4), Mumbai vs. L and T Valdel Engineering Limited, Bangaluru

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4715/MUM/2023[2013-14]Status: DisposedITAT Mumbai30 Oct 2024AY 2013-14

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

DCIT CC -5 (4), Mumbai vs. L and T Valdel Engineering Limited, Mumbai

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4684/MUM/2023[2015-16]Status: DisposedITAT Mumbai30 Oct 2024AY 2015-16

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

DCIT Central Circle 5 4 Mumbai, Mumbai vs. L and T Valdel Engineering Limited, Bangaluru

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4683/MUM/2023[2014-15]Status: DisposedITAT Mumbai30 Oct 2024AY 2014-15

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

DCIT Central Circle 5 4, Mumbai vs. L and T Valdel Engineering Limited, Karnataka

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4682/MUM/2023[2012-13]Status: DisposedITAT Mumbai30 Oct 2024AY 2012-13

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

Larsen & Toubro Limited (Successor to M/S L & T Va;De; Engineering Limited ), Mumbai vs. Assistant Commissioner of Income Tax, Central Circle 5(4) Mumbai (Earlier AO Dcitm Circle 11(5) Bangalore, Mumbai

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4555/MUM/2023[2015-16]Status: DisposedITAT Mumbai30 Oct 2024AY 2015-16

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

Larsen & Toubro Limited (Successor to M/S L & T Valdel Engineering Limited ), Mumbai vs. Assistant Commissioner of Income Tax, Central Circle 5(4), Mumbai

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4554/MUM/2023[2014-15]Status: DisposedITAT Mumbai30 Oct 2024AY 2014-15

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

Larsen & Toubro Limited (Successor to M/S L & T Valdel Engineering Limited ), Mumbai vs. Assistant Commissioner of Income Tax, Central Circle 5(4), Mumbai Earlier AO DCIT, Circle 11(5) Banglore, Mumbai

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4553/MUM/2023[2013-14]Status: DisposedITAT Mumbai30 Oct 2024AY 2013-14

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

Larsen & Toubro Limited (Successor to M/S L & T Valdel Engineering Limited ), Mumbai vs. Assistant Commissioner of Income Tax. Central Circle 5(4) Mumbai(Earlier AO DCIT, Circle 11(5) Bangalore ), Mumbai

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4552/MUM/2023[2012-13]Status: DisposedITAT Mumbai30 Oct 2024AY 2012-13

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

Larsen & Toubro Limited, Mumbai vs. Assistant Commissioner of Income Tax Central Circle 5(4), Mumbai (Earlier AO DCIT, Circle 11(5) Banglore ., Mumbai

In the result, all appeals filed by the assessee stands allowed and appeals filed by the revenue stands dismissed for all assessment years under consideration

ITA 4551/MUM/2023[2011-12]Status: DisposedITAT Mumbai30 Oct 2024AY 2011-12

Bench: Smt. Beena Pillai, Jm & Shri Omkareshwar Chidara, Am

…Ld. AO disallow the same treating it is speculative in nature, since there was no actual delivery of foreign-exchange. The Ld.AR relied on the decision of Hon‟ble Bangalore Tribunal in case of a CIT vs K. Mohan & company (Exports) Pvt. Ltd. reported in (2010) 130 TTJ 719. Aggrieved by the disallowance made, assessee preferre appeal before the Ld. CIT(A) D.2. It is submitted that the Ld. CIT(A) noted that the assessee entered into foreign-exchange forward contracts with banks to safeguard itself against future fluctuation in foreign exchange rates of foreign currency for the future receipts from its customers. It…

M/S. Nalini Jewellers, New Delhi vs. ACIT, New Delhi

In the result, appeal filed by assessee is partly allowed

ITA 4463/DEL/2014[2010-11]Status: DisposedITAT Delhi04 Dec 2019AY 2010-11

Bench: Shri H.S. Sidhu & Shri Anadee Nath Misshra

For Appellant: Shri Nishant Datta, AdvFor Respondent: Ms. Rakhi Vimal, Sr. DR
Section 43(5)

…nsidered view that the Assessing Officer has erred in holding the gains arisen from forward contracts in respect of ‘ Foreign Currency 1 as business income thought he has placed reliance on the decision in the case f K Mohan & Company (Export) (P) Ltd. (2010) 130 TTJ 719. However, the nature of Page 5 of 11 ITA No.- 4463/Del/2014 Nalini Jewellers. forward contracts in respect of ‘Foreign Currency’ as mentioned above is speculation. Thus, both types of transaction; forward contracts in respect of ‘pure gold’ and forward contracts in respect of ‘foreign currency’ being similar hs to be treated on the same footings…

M/S. Nalini Jewellers, New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2178/DEL/2016[2012-13]Status: DisposedITAT Delhi11 Jul 2019AY 2012-13
For Appellant: Sh. Pradeep Bhardwaj, AdvFor Respondent: Ms. Rinku Singh, Sr. DR
Section 143(2)Section 143(3)Section 43(5)

…considered view that the Assessing Officer has erred in holding the gains arisen from Forward contracts in respect of 'Foreign Currency1 as business income though he has placed reliance on the decision in the case of K Mohan & Company (Export) (P) Ltd. (2010) 130 TTJ 719. However, the nature of Forward contracts in respect of 'Foreign Currency' as mentioned above is speculation. Thus, both types of transactions; Forward contracts in respect of 'pure gold' and Forward contracts in respect of 'Foreign Currency' being similar has to be treated on the same footings. Thus, it is hereby held that the profit of Rs.99,22…

CIT v. K. Mohan (130 TTJ 719) — Cited in 12 Judgments | BharatTax