CIT v. Woodward Governor India Pvt. Ltd.

294 ITR 451High Court2007#877 most cited

What is CIT v. Woodward Governor India Pvt. Ltd. authority for?

The amendment to Section 43A of the Income Tax Act, 1961, is prospective and applies only from April 1, 2003. This means it governs changes in the actual cost of assets due to exchange rate fluctuations from that date onwards.

120

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2007 to 2025.

Also referred to as

CIT v. Woodward Governor India Pvt. Ltd. · Woodward Governor · 294 ITR 451 · Section 43A · Section 43A amendment · prospective application · retrospective effect · actual cost of asset · depreciation · fixed assets · 1 April 2003 · Delhi High Court

Sections most often in play

Section 1961Section 14ASection 145Section 37(1)Section 115JBSection 142(1)Section 143(2)Section 28
Read the full judgment

Issues it is cited on

section 10b(8)purposive interpretationsection 43abenchmarking analysissection 80hhcsection 41(1)section 80hhsection 139(5)cup methodsection 41section 40(a)(i)most appropriate method

Judgments citing CIT v. Woodward Governor India Pvt. Ltd.

DCIT 4(1), Mumbai vs. Darashaw & Co. Ltd, Mumbai

In the result, both the appeals are partly allowed

ITA 660/MUM/2012[2008-09]Status: DisposedITAT Mumbai21 Feb 2020AY 2008-09

Bench: Shri Saktijit Dey & Shri Rajesh Kumarsl.

For Appellant: Shri Madhur AgarwalFor Respondent: Smt. Jyothilakshmi Nayak
Section 115JSection 254(2)

…loss. In support of such contention, the assessee relied upon the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Woodward Governor ITA Nos. 456 & 660/Mum/2012 & 225 & 229/Mum/2011 Darashaw & Company Pvt Ltd.,, Mumbai. India Pvt Ltd, [2007] 294 ITR 451, subsequently, confirmed by the Hon’ble Supreme Court. Further, the assessee relied upon various other case laws to justify its claim. The Assessing Officer, however, was not convinced with the submissions of the assessee. He observed, while the assessee has debited provision for mark to market loss to the profit and loss account, however, profit…

Darashaw & Company P.Ltd, Mumbai vs. DCIT RG 4(1), Mumbai

In the result, both the appeals are partly allowed

ITA 456/MUM/2012[2008-09]Status: DisposedITAT Mumbai21 Feb 2020AY 2008-09

Bench: Shri Saktijit Dey & Shri Rajesh Kumarsl.

For Appellant: Shri Madhur AgarwalFor Respondent: Smt. Jyothilakshmi Nayak
Section 115JSection 254(2)

…loss. In support of such contention, the assessee relied upon the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Woodward Governor ITA Nos. 456 & 660/Mum/2012 & 225 & 229/Mum/2011 Darashaw & Company Pvt Ltd.,, Mumbai. India Pvt Ltd, [2007] 294 ITR 451, subsequently, confirmed by the Hon’ble Supreme Court. Further, the assessee relied upon various other case laws to justify its claim. The Assessing Officer, however, was not convinced with the submissions of the assessee. He observed, while the assessee has debited provision for mark to market loss to the profit and loss account, however, profit…

Supama Commodities Ltd, Mumbai vs. ITO 4(3)(4), Mumbai

In the result, both the appeals are partly allowed

ITA 229/MUM/2011[2007-08]Status: DisposedITAT Mumbai21 Feb 2020AY 2007-08

Bench: Shri Saktijit Dey & Shri Rajesh Kumarsl.

For Appellant: Shri Madhur AgarwalFor Respondent: Smt. Jyothilakshmi Nayak
Section 115JSection 254(2)

…loss. In support of such contention, the assessee relied upon the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Woodward Governor ITA Nos. 456 & 660/Mum/2012 & 225 & 229/Mum/2011 Darashaw & Company Pvt Ltd.,, Mumbai. India Pvt Ltd, [2007] 294 ITR 451, subsequently, confirmed by the Hon’ble Supreme Court. Further, the assessee relied upon various other case laws to justify its claim. The Assessing Officer, however, was not convinced with the submissions of the assessee. He observed, while the assessee has debited provision for mark to market loss to the profit and loss account, however, profit…

Darashaw & Company P.Ltd, Mumbai vs. DCIT RG 4(1), Mumbai

In the result, both the appeals are partly allowed

ITA 225/MUM/2011[2007-08]Status: DisposedITAT Mumbai21 Feb 2020AY 2007-08

Bench: Shri Saktijit Dey & Shri Rajesh Kumarsl.

For Appellant: Shri Madhur AgarwalFor Respondent: Smt. Jyothilakshmi Nayak
Section 115JSection 254(2)

…loss. In support of such contention, the assessee relied upon the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Woodward Governor ITA Nos. 456 & 660/Mum/2012 & 225 & 229/Mum/2011 Darashaw & Company Pvt Ltd.,, Mumbai. India Pvt Ltd, [2007] 294 ITR 451, subsequently, confirmed by the Hon’ble Supreme Court. Further, the assessee relied upon various other case laws to justify its claim. The Assessing Officer, however, was not convinced with the submissions of the assessee. He observed, while the assessee has debited provision for mark to market loss to the profit and loss account, however, profit…

Housing and Urban Development Corporation Ltd Through Its Authorized Signatory vs. Additional Commissioner of Income Tax Range 12 New Delhi

The appeal is allowed

ITA/541/2019HC Delhi06 Feb 2020

Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA

Section 143(3)Section 260ASection 263

…ITA 541/2019 Page 1 of 33 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 6th November, 2019 Pronounced on: 6th February, 2020 + ITA 541/2019 HOUSING AND URBAN DEVELOPMENT CORPORATION LTD THROUGH ITS AUTHORIZED SIGNATORY..... Appellant Through: Mr. Gagan Kumar and Mr. Amit Kaushik, Advocates. versus ADDITIONAL COMMISSIONER OF INCOME TAX RANGE 12 NEW DELHI ..... Respondent Through: Mr. Zoheb Hossain and Mr. Deepak Anand, Advocates. CORAM: HON’BLE MR. JUSTICE VIPIN SANGHI HON’BLE MR. JUSTICE SANJEEV…

DCIT, New Delhi vs. M/S Ircon International Ltd., New Delhi

In the result, all the three appeals of the assessee for A

ITA 3805/DEL/2008[2003-04]Status: DisposedITAT Delhi31 Oct 2019AY 2003-04

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…277(D- E) and CIT vs. U.P. State Industrial Development Corporation (1997) 139 CTR (SC) 267 : (1997) 225 ITR 703 (SC) and also the judgment of a Division Bench of this Court in CIT vs. Woodward Governor India (P) Ltd. & Ors. (2007) 210 CTR (Del) 354 : (2007) 294 ITR 451 (Del) at p. 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow : "In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant case was in consonance with the general principles of accountancy governing underwriting accounts. It is a well accepted propo…

Ircon International Ltd., New Delhi vs. DCIT, Circle-11(1), Delhi

In the result, all the three appeals of the assessee for A

ITA 705/DEL/2006[2002-2003]Status: DisposedITAT Delhi31 Oct 2019AY 2002-2003

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…277(D- E) and CIT vs. U.P. State Industrial Development Corporation (1997) 139 CTR (SC) 267 : (1997) 225 ITR 703 (SC) and also the judgment of a Division Bench of this Court in CIT vs. Woodward Governor India (P) Ltd. & Ors. (2007) 210 CTR (Del) 354 : (2007) 294 ITR 451 (Del) at p. 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow : "In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant case was in consonance with the general principles of accountancy governing underwriting accounts. It is a well accepted propo…

DCIT, Circle-11(1) vs. Ircon International Ltd

In the result, all the three appeals of the assessee for A

ITA 2234/DEL/2005[2001-2002]Status: DisposedITAT Delhi31 Oct 2019AY 2001-2002

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…277(D- E) and CIT vs. U.P. State Industrial Development Corporation (1997) 139 CTR (SC) 267 : (1997) 225 ITR 703 (SC) and also the judgment of a Division Bench of this Court in CIT vs. Woodward Governor India (P) Ltd. & Ors. (2007) 210 CTR (Del) 354 : (2007) 294 ITR 451 (Del) at p. 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow : "In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant case was in consonance with the general principles of accountancy governing underwriting accounts. It is a well accepted propo…

Ircon International Limited, New Delhi vs. ACIT, New Delhi

In the result, all the three appeals of the assessee for A

ITA 3804/DEL/2008[2003-04]Status: DisposedITAT Delhi31 Oct 2019AY 2003-04

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…277(D- E) and CIT vs. U.P. State Industrial Development Corporation (1997) 139 CTR (SC) 267 : (1997) 225 ITR 703 (SC) and also the judgment of a Division Bench of this Court in CIT vs. Woodward Governor India (P) Ltd. & Ors. (2007) 210 CTR (Del) 354 : (2007) 294 ITR 451 (Del) at p. 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow : "In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant case was in consonance with the general principles of accountancy governing underwriting accounts. It is a well accepted propo…

Ircon International Ltd vs. Addl. CIT, Range-11

In the result, all the three appeals of the assessee for A

ITA 1825/DEL/2005[2001-2002]Status: DisposedITAT Delhi31 Oct 2019AY 2001-2002

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…277(D- E) and CIT vs. U.P. State Industrial Development Corporation (1997) 139 CTR (SC) 267 : (1997) 225 ITR 703 (SC) and also the judgment of a Division Bench of this Court in CIT vs. Woodward Governor India (P) Ltd. & Ors. (2007) 210 CTR (Del) 354 : (2007) 294 ITR 451 (Del) at p. 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow : "In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant case was in consonance with the general principles of accountancy governing underwriting accounts. It is a well accepted propo…

DCIT - CC - 1(1), Mumbai vs. Edelweiss Commodities Services Ltd., Mumbai

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

ITA 5587/MUM/2018[2012-13]Status: DisposedITAT Mumbai25 Oct 2019AY 2012-13

Bench: Shri Ravish Sood () & Shri N.K. Pradhan () Assessment Year: 2012-13

For Appellant: Mr. Ravi Kanth Pathak,ARFor Respondent: Mr. R. Manjunatha Swamy, DR
Section 143(3)

…e market value of the stock is less than the cost value. It was also expounded that the established and well settled practice in this regard should not be disturbed. Similar view was expressed by the Hon’ble Apex Court in the case of CIT vs. Woodward Governor 294 ITR 451 (SC). In this decision, the Hon’ble Apex Court has held that the accounts and the accounting method followed by an assessee continuously for a given period of time needs to be presumed to be correct till the Assessing Officer comes to the conclusion for reasons to be given that the system does not reflect true and correct profits. In the said cas…

ACIT, New Delhi vs. M/S Theolia Wind Power Pvt. Ltd., New Delhi

ITA 503/DEL/2012[2008-09]Status: DisposedITAT Delhi29 Jul 2019AY 2008-09

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Anil Kumar Chopra, FCAFor Respondent: Smt. Naina Soin Kapil, Senior DR
Section 14A

…e of foreign exchange as on the date of the balance-sheet is an 15 ITA No.503/Del./2012 ITA No.134/Del./2014 item of expenditure under section 37(1) of the Income-tax Act, 1961. Decision of the Delhi High Court in CIT v. WOODWARD GOVERNOR INDIA P. LTD. [2007] 294 ITR 451 affirmed. For valuing the closing stock at the end of a particular year, the value prevailing on the last date is relevant. This is because profit/loss is embedded in the closing stock. While anticipated loss is taken into account, anticipated profit in the shape of appreciated value of the closing stock is not brought into account, as no prudent…

M/S. Theolia Wind Power Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 134/DEL/2014[2009-10]Status: DisposedITAT Delhi29 Jul 2019AY 2009-10

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Anil Kumar Chopra, FCAFor Respondent: Smt. Naina Soin Kapil, Senior DR
Section 14A

…e of foreign exchange as on the date of the balance-sheet is an 15 ITA No.503/Del./2012 ITA No.134/Del./2014 item of expenditure under section 37(1) of the Income-tax Act, 1961. Decision of the Delhi High Court in CIT v. WOODWARD GOVERNOR INDIA P. LTD. [2007] 294 ITR 451 affirmed. For valuing the closing stock at the end of a particular year, the value prevailing on the last date is relevant. This is because profit/loss is embedded in the closing stock. While anticipated loss is taken into account, anticipated profit in the shape of appreciated value of the closing stock is not brought into account, as no prudent…

DCIT, Cir-11(1), Kolkata vs. M/S Haldia Petrochemicals Ltd., Kolkata

In the result, this appeal of the revenue is dismissed

ITA 1976/KOL/2016[2003-04]Status: DisposedITAT Kolkata30 Oct 2018AY 2003-04

Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi) Assessment Year: 2003-04 Deputy Commissioner Of Income Tax, Circle-11(1), Kolkata.……......………..…..................Appellant Vs. M/S. Haldia Petrochemicals.....……………...........…………..……………………...……..….…….......Respondent Bengal Eco Intelligent Park (Techno) Tower-1, Block-Em Plot No. 3 Salt Lake City Sector-V, 3Rd Floor Kolkata -91 [Pan : Aaach 7360 R]

Section 250

…egularly followed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144." 31. We also find support from the decision of Hon'ble Delhi High Court in the case of CIT vs Woodward Governor India Private Limited [2007] 294 ITR 451 (Del) where it was held that:- "We affirm the decision of the Income-tax Appellate Tribunal in Oil and natural Gas Corporation Ltd. V. Deputy CIT (Asstt.) [2003] 261 ITR (AT) 1 (Delhi) which rightly follows the settled position as explained in the judgment of the Hon'ble Supreme Court which we have referred to. We, therefore, reject the submissio…

Asst CIT 19(1), Mumbai vs. Dharamchand Paraschand Exports, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 6743/MUM/2016[2012-13]Status: DisposedITAT Mumbai27 Aug 2018AY 2012-13

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm Assistant Commissioner Of Vs. M/S. Dharamchand Paraschand Income Tax- 19(1) Exports, Room No.203, 2Nd Floor Ce/3011-3012, Bharat Matru Mandir, Tardeo Road Diamond Bourse, Bkc Mumbai – 400 007 Bandra (E), Mumbai – 400 051 Pan/Gir No. Aaafd1078M Appellant) .. Respondent)

Section 143(3)

…not allow assessee to trade in the risk mitigating products. Thus, CBDT Instructions is not at all applicable to the Assessee, it is stated. 6.2.3 The appellant drawn the attention to the Supreme Court decision in the case of Woodward Governor India Pvt Ltd (294 ITR 451). In this case, Assessee had debited to its Profit & Loss Account a sum of ₹. 41,06,746 out of which a sum of ₹.29,49,088 was the unrealized loss due to foreign exchange fluctuation on the last date of the accounting year. The AO held that the liability as on the last date of the previous- year under consideration was a contingent liability, it w…

ACIT 3(1)(2), Mumbai vs. Edel Commodities Ltd, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 1643/MUM/2017[2012-13]Status: DisposedITAT Mumbai06 Aug 2018AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am Aayakr Apila Sam./ Ita No. 1643/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2012-13) Acit-3(1)(2), Edel Commodities Ltd. Room No. 607, 6Th Floor, 14Th Floor, Express Tower, Vs. Aayakar Bhavan, Mumbai-20 Nariman Point, Mumbai-400 021 (Apilaaqai- / Appellant) .. (P`%Yaqaai- / Respondent) स्थायी लेखा िं./Pan No. Aacce0323K

For Appellant: Shri DG Pansari, DRFor Respondent: Shri Ravikant Pathak, AR
Section 143(3)

…e market value of the stock is less than the cost value. It was also expounded that the established and well settled practice in this regard should not be disturbed. Similar view was expressed by the Hon’ble Apex Court in the case of CIT vs. Woodward Governor 294 ITR 451 (SC). In this decision, the Hon’ble Apex Court has held that the accounts and the accounting method followed by an assessee continuously for a given period of time needs to be presumed to be correct till the Assessing Officer comes to the conclusion for 5 reasons to be given that the system does not reflect true and correct profits. In the said c…

DCIT, Cir-11(1), Kolkata vs. M/S Haldia Petrochemicals Ltd., Kolkata

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

ITA 168/KOL/2016[2004-05]Status: DisposedITAT Kolkata06 Jul 2018AY 2004-05

Bench: Hon’Ble Shri P.M.Jagtap, Am & Shri S.S.Viswanethra Ravi, Jm ] Assessment Year : 2004-05

For Appellant: Shri Harakamal Chakravorty, ARFor Respondent: Shr P.K.Srihari, CIT
Section 115J

…egularly followed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144." 31. We also find support from the decision of Hon'ble Delhi High Court in the case of CIT vs Woodward Governor India Private Limited [2007] 294 ITR 451 (Del) where it was held that:- "We affirm the decision of the Income-tax Appellate Tribunal in Oil and natural Gas Corporation Ltd. V. Deputy CIT (Asstt.) [2003] 261 ITR (AT) 1 (Delhi) which rightly follows the settled position as explained in the judgment of the Hon'ble Supreme Court which we have referred to. We, therefore, reject the submissi…

Haldia Petrochemicals Ltd., Kolkata vs. ACIT, Cir-8, Kolkata

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

ITA 1533/KOL/2015[2003-2004]Status: DisposedITAT Kolkata06 Jul 2018AY 2003-2004

Bench: Hon’Ble Shri P.M.Jagtap, Am & Shri S.S.Viswanethra Ravi, Jm ] Assessment Year : 2004-05

For Appellant: Shri Harakamal Chakravorty, ARFor Respondent: Shr P.K.Srihari, CIT
Section 115J

…egularly followed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144." 31. We also find support from the decision of Hon'ble Delhi High Court in the case of CIT vs Woodward Governor India Private Limited [2007] 294 ITR 451 (Del) where it was held that:- "We affirm the decision of the Income-tax Appellate Tribunal in Oil and natural Gas Corporation Ltd. V. Deputy CIT (Asstt.) [2003] 261 ITR (AT) 1 (Delhi) which rightly follows the settled position as explained in the judgment of the Hon'ble Supreme Court which we have referred to. We, therefore, reject the submissi…

DCIT, Cir-10(2), Kolkata vs. M/S Philips Carbon Black Ltd., Kolkata

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

ITA 1273/KOL/2015[2009-2010]Status: DisposedITAT Kolkata04 Jul 2018AY 2009-2010

Bench: : Shri M. Balaganesh & Shri S.S.Viswanethra Ravi

For Appellant: Shri D.S. Damle, FCA, ld.ARFor Respondent: Shri S. Dasgupta, Addl. CIT, ld.Sr.DR
Section 14A

…s in foreign currency which has not been settled in the year under consideration as notional loss. However the ld. CIT(A) allowed such loss having reliance on judgment of the Hon’ble Delhi High Court in the case CIT Vs Woodward Governor India Ltd. reported in 294 ITR 451. In rejoinder ld. DR stated that the said judgment of the Hon'ble Delhi High Court was delivered much earlier whereas the Instruction No. 3/2010 was issued dated 23.03.2010. Thus the instruction issued by the CBDT was not considered by the Hon'ble Delhi High Court. However, we find that the instructions issued by the CBDT are not binding on the C…

Mahindra World City Developers Ltd., Chennai vs. ACIT, Chennai

In the result, the corresponding grounds of the assessee are

ITA 2086/CHNY/2016[2012-13]Status: DisposedITAT Chennai27 Jun 2018AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकरअपीलसं/.I.T.A. Nos. 2084, 2085 & 2086/Chny/2016 "नधा"रणवष"/Assessment Years : 2010-11 To 2012-13

For Respondent: Mrs. Ruby George, CIT
Section 14A

…e cases of CIT v. Indo Nippon Chemicals Co. Ltd. [2003] 261 ITR 275 at page 277 (D-E) & CIT v. U.P State Industrial Development Corpn. [1997] 225 ITR 703 and also the judgment of a Division Bench of this Court in CIT v. Woodward Governor India (P) Ltd. [2007] 294 ITR 451 at pages 463-464. The observations of UPSIDC being apposite are extracted hereinbelow:- "In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant case was in consonance with the general principles of accountancy governing underwriting accounts. It is a wellaccepted proposition that for th…