CIT v. Woodward Governor India Pvt. Ltd.

312 ITR 254Supreme Court of India2009#45 most cited

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

Foreign exchange fluctuations, whether gains or losses, are inextricably linked to the underlying business transaction and must be accounted for under the mercantile system. The Supreme Court also affirmed the standard accounting principle of valuing stock at cost or net realisable value, whichever is lower.

968

judgments rely on this decision, according to BharatTax’s citation analysis of 372,010 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Woodward Governor · 312 ITR 254 · Section 37(1) · Section 43A · Section 145(3) · foreign exchange fluctuation · mercantile system of accounting · stock valuation · closing stock · revenue expenditure

Also reported as

21 DTR 106

Sections most often in play

Section 37(1)Section 143(3)Section 14ASection 115JBSection 147Section 142(1)Section 43(5)Section 40(a)(ia)
Read the full judgment

Issues it is cited on

section 43asection 40(a)(i)mercantile system of accountingbook profitssection 37(1)section 115jrevenue expendituresection 43capital expendituresection 40(a)section 115jbsection 32

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

India Safari and Tours Ltd, New Delhi vs. DCIT, Circle-12(1), New Delhi

In the result, assessee’s appeal is allowed

ITA 4919/DEL/2018[2013-14]Status: DisposedITAT Delhi15 Jun 2022AY 2013-14
For Appellant: Shri D.C. Garg, CAFor Respondent: Ms. Anupama Singla, Senior DR

…Income Tax (Appeals)-22, New Delhi, has erred in law as well as on facts while confirming disallowance of loss incurred on foreign exchange amounting to Rs. 14,404/- by disregarding verdict of Hon'ble Supreme Court in CIT Vs Woodward Governor India Pvt Ltd. [312 ITR 254]. 4. That the Learned Commissioner of Income Tax (Appeals)-22, New Delhi has erred in law as well as on facts and in circumstances of the case in confirming action of the AO in treating legal & professional expenses as capital nature and allowing only depreciation for the part of the year.” 3. Apropos ground no.1 : Brief facts of the case are th…

K.Uttamlal and Company, Mumbai vs. ACIT 17(2), Mumbai

In the result, both the appeals by the assessee are allowed for statistical purpose

ITA 2011/MUM/2021[2013-14]Status: DisposedITAT Mumbai14 Jun 2022AY 2013-14

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Sunil HirawatFor Respondent: Shri Dinesh Chourasia, Sr. AR
Section 143Section 250Section 253(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2011/Mum./2021 ITA no.2010/Mum./2021 (Assessment Year : 2013–14) (Assessment Year : 2012–13) K. Uttamlal And Company 1st Floor, Bhagwan Bhuvan ……………. Appellant 196–198, Samuel Street Musjid Bunder, Mumbai 400 009 PAN – AAIFK9976H v/s Asstt. Commissioner of Income Tax ……………. Respondent Circle–17(2), Mumbai Assessee by : Shri Sunil Hirawat Revenue by : Shri Dinesh Chourasia, Sr. AR Date of Hearing – 20/04/2022 Date of Order – 14/06/2022 O R D E R PER SANDEEP…

K.Uttamlal and Company, Mumbai vs. Joint CIT 17(2), Mumbai

In the result, both the appeals by the assessee are allowed for statistical purpose

ITA 2010/MUM/2021[2012-13]Status: DisposedITAT Mumbai14 Jun 2022AY 2012-13

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Sunil HirawatFor Respondent: Shri Dinesh Chourasia, Sr. AR
Section 143Section 250Section 253(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2011/Mum./2021 ITA no.2010/Mum./2021 (Assessment Year : 2013–14) (Assessment Year : 2012–13) K. Uttamlal And Company 1st Floor, Bhagwan Bhuvan ……………. Appellant 196–198, Samuel Street Musjid Bunder, Mumbai 400 009 PAN – AAIFK9976H v/s Asstt. Commissioner of Income Tax ……………. Respondent Circle–17(2), Mumbai Assessee by : Shri Sunil Hirawat Revenue by : Shri Dinesh Chourasia, Sr. AR Date of Hearing – 20/04/2022 Date of Order – 14/06/2022 O R D E R PER SANDEEP…

M/S. Biocon Limited, Bengaluru vs. Commissioner of Income Tax, Ltu, Bengaluru

In the result, the appeal filed by the assessee is allowed on the legal issue raised in ground no

ITA 1858/BANG/2018[2010-11]Status: DisposedITAT Bangalore09 Jun 2022AY 2010-11

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2010-11 The Joint M/S. Biocon Ltd., Commissioner Of 20Th Km, Hosur Road, Income-Tax, Electronic City, Large Tax Payers Bangalore – 560 100. Unit [Ltu], Pan: Aaacb7461R Vs. Bangalore. Appellant Respondent : Shri Padam Chand Khincha, Assessee By Ca Revenue By : Shri Pradeep Kumar, Cit Dr Date Of Hearing : 20-04-2022 Date Of Pronouncement : 09-06-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Order Dated 28.03.2018 Passed By Ld.Cit(A)-3, Bangalore For A.Y. 2010-11 On Following Grounds Of Appeal: “The Grounds Mentioned Herein Below Are Independent & Without Prejudice To The Other Grounds Preferred By The Appellant. 1. That On Facts & Circumstances Of The ' Case & In Law, The Order Passed By The Learned Commissioner Of Income-Tax Appeals ["Cit(A)"] Dated March 28, 2018 Under Section 250 Of The Income-Tax Act, 1961 ("The Act") For Ay 2010-11 To The Extent Prejudicial To The Appellant, Is Bad In Law & Facts & Liable To Be Quashed. 2. Scope Of Re-Assessment Proceedings

For Respondent: Shri Padam Chand Khincha
Section 147Section 250Section 35

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment Year : 2010-11 The Joint M/s. Biocon Ltd., Commissioner of 20th KM, Hosur Road, Income-tax, Electronic City, Large Tax Payers Bangalore – 560 100. Unit [LTU], PAN: AAACB7461R Vs. Bangalore. APPELLANT RESPONDENT : Shri Padam Chand Khincha, Assessee by CA Revenue by : Shri Pradeep Kumar, CIT DR Date of Hearing : 20-04-2022 Date of Pronouncement : 09-06-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal is filed by assessee against the order dated 28.03…

M/S. Model Infra Corporation Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 1(1), Bangalore

In the result, the appeal filed by assessee stands partly allowed

ITA 11/BANG/2020[2009-10]Status: DisposedITAT Bangalore01 Jun 2022AY 2009-10

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2009-10 M/S. Model Infra Corporation Pvt. Ltd., The Assistant No. 6, Second Floor, Smk Commissioner Of Chambers, Income Tax, First A Main Road, Circle – 1(1), Yelahanka New Town, Vs. Bangalore. Bangalore – 560 064. Pan: Aadcm7125J Appellant Respondent Assessee By : Shri Nitish Ranjan, Ca : Shri Priyadarshi Mishra, Revenue By Addl. Cit (Dr) Date Of Hearing : 29-03-2022 Date Of Pronouncement : 01-06-2022 Order Per Beena Pillaipresent Appeal Arises Out Of Order Dated 25.10.2019 Passed By Ld.Cit(A)-4, Bangalore For A.Y. 2009-10 On Following Grounds Of Appeal: Tax Effect Relating Grounds Of Appeal To Each Ground Of Appeal The Order Of The Ld. Commissioner Of Income- 1. Tax (Appeals) Is Opposed To Law, Facts & Na - Circumstances Of The Case.

For Appellant: Shri Nitish Ranjan, CA
Section 36Section 36(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment Year : 2009-10 M/s. Model Infra Corporation Pvt. Ltd., The Assistant No. 6, Second Floor, SMK Commissioner of Chambers, Income Tax, First A Main Road, Circle – 1(1), Yelahanka New Town, Vs. Bangalore. Bangalore – 560 064. PAN: AADCM7125J APPELLANT RESPONDENT Assessee by : Shri Nitish Ranjan, CA : Shri Priyadarshi Mishra, Revenue by Addl. CIT (DR) Date of Hearing : 29-03-2022 Date of Pronouncement : 01-06-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present ap…

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

…t that foreign exchange loss arising from such transactions are not in revenue nature but M2M losses have been disallowed treating it as contingent and unascertained losses. However, Hon'ble Supreme court in the case of CIT v. Woodward Governor India P. Ltd. (312 ITR 254) has treated such M2M losses as actual loss and not contingent loss. The Hon'ble Supreme Court has held as under: From the Head Notes: "BUSINESS EXPENDITURE—MERCANTILE SYSTEM OF ACCOUNTING — LOAN TAKEN FOR REVENUE PURPOSES — ADDITIONAL LIABILITY ARISING OUT OF FLUCTUATION IN RATE OF EXCHANGE — ALLOWABLE IN YEAR OF INCREASE IN RATE—INCOME-TAX ACT…

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

…t that foreign exchange loss arising from such transactions are not in revenue nature but M2M losses have been disallowed treating it as contingent and unascertained losses. However, Hon'ble Supreme court in the case of CIT v. Woodward Governor India P. Ltd. (312 ITR 254) has treated such M2M losses as actual loss and not contingent loss. The Hon'ble Supreme Court has held as under: From the Head Notes: "BUSINESS EXPENDITURE—MERCANTILE SYSTEM OF ACCOUNTING — LOAN TAKEN FOR REVENUE PURPOSES — ADDITIONAL LIABILITY ARISING OUT OF FLUCTUATION IN RATE OF EXCHANGE — ALLOWABLE IN YEAR OF INCREASE IN RATE—INCOME-TAX ACT…

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

…t that foreign exchange loss arising from such transactions are not in revenue nature but M2M losses have been disallowed treating it as contingent and unascertained losses. However, Hon'ble Supreme court in the case of CIT v. Woodward Governor India P. Ltd. (312 ITR 254) has treated such M2M losses as actual loss and not contingent loss. The Hon'ble Supreme Court has held as under: From the Head Notes: "BUSINESS EXPENDITURE—MERCANTILE SYSTEM OF ACCOUNTING — LOAN TAKEN FOR REVENUE PURPOSES — ADDITIONAL LIABILITY ARISING OUT OF FLUCTUATION IN RATE OF EXCHANGE — ALLOWABLE IN YEAR OF INCREASE IN RATE—INCOME-TAX ACT…

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

…t that foreign exchange loss arising from such transactions are not in revenue nature but M2M losses have been disallowed treating it as contingent and unascertained losses. However, Hon'ble Supreme court in the case of CIT v. Woodward Governor India P. Ltd. (312 ITR 254) has treated such M2M losses as actual loss and not contingent loss. The Hon'ble Supreme Court has held as under: From the Head Notes: "BUSINESS EXPENDITURE—MERCANTILE SYSTEM OF ACCOUNTING — LOAN TAKEN FOR REVENUE PURPOSES — ADDITIONAL LIABILITY ARISING OUT OF FLUCTUATION IN RATE OF EXCHANGE — ALLOWABLE IN YEAR OF INCREASE IN RATE—INCOME-TAX ACT…

Taqa Neyveli Power Company Private Limited, Chennai vs. PCIT, Chennai-3

The appeal stands dismissed

ITA 149/CHNY/2021[2016-17]Status: DisposedITAT Chennai23 May 2022AY 2016-17

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri R. Sivaraman (Advocate) – Ld. ARFor Respondent: Shri ARV Sreenivasan (Addl.CIT) – Ld. Sr. DR
Section 143(3)Section 263

…आयकर अपीलीय अिधकरण ‘ए’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय -ी वी. दुगा3राव, "ाियक सद5 एवं माननीय -ी मनोज कुमार अ9वाल ,लेखा सद5 के सम;। BEFORE HON’BLE SHRI V. DURGA RAO, JUDICIAL MEMBER AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.149/Chny/2021 (िनधा3रणवष3 / Assessment Year: 2016-17) TAQA Neyveli Power Company Pvt. PCIT, Chennai -3, Ltd. No. 121, Mahatma Gandhi Road बनाम/ No. 79, Kasth Nungambakkam uri Avenue, MRC Nagar, Raja Chennai – 34. Vs. Annamalaipuram, Chennai – 600 028. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AACCS-2753-B (अपीलाथ"/Appellant) : (""थ"…

M/S Harman Connected Services Corporation India Pvt. Ltd., Bangalore vs. DCIT, Bangalore

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

ITA 705/BANG/2016[2011-12]Status: DisposedITAT Bangalore23 May 2022AY 2011-12

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.705/Bang/2016 Assessment Year : 2011-12 Dcit, M/S. Harman Connected Services Vs. Circle – 3(1)(2), Corporation India Private Limited, Bengaluru. (Formerly Known Symphony Teleca Corporation India Private Limited), Plot No.3 & 3A, Eoiz Industrial Area, Sy. No.85 & 86, Sadaramangala Village, Krishnarajapuram Hobli, Bengaluru – 560 066. Pan: Aabcg 5658 E Appellant Respondent Assessee By : Shri. T. Suryanarayana, Advocate Revenue By : Shri. Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 22.02.2022 Date Of Pronouncement : 23.05.2022 O R D E R Per B. R. Baskaran:

For Appellant: Shri. T. Suryanarayana, AdvocateFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 10ASection 143(3)Section 40Section 40A

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI B. R. BASKARAN, ACCOUNTANT MEMBER IT(TP)A No.705/Bang/2016 Assessment Year : 2011-12 DCIT, M/s. Harman Connected Services Vs. Circle – 3(1)(2), Corporation India Private Limited, Bengaluru. (formerly known Symphony Teleca Corporation India Private Limited), Plot No.3 and 3A, EOIZ Industrial Area, Sy. No.85 and 86, Sadaramangala Village, Krishnarajapuram Hobli, Bengaluru – 560 066. PAN: AABCG 5658 E APPELLANT RESPONDENT Assessee by : Shri. T. Suryanarayana, Advocate Revenue by : Shri. Sumer Singh Meen…

M/S Regency Property Investments Pvt Ltd., Mumbai vs. ITO Ward 3 (3)(4), Mumbai

In the result, appeal filed by the assessee is partly allowed

ITA 7972/MUM/2019[2013-14]Status: DisposedITAT Mumbai28 Apr 2022AY 2013-14

Bench: Shri Amarjit Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Satish ModyFor Respondent: Shri Ganesh Bare

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER ITA NO. 7181 /MUM/2019 (A.Y: 2014-15) M/s. Regency Property Investment Pvt. Ltd., v. DCIT – 3(3)(1) 77, 7th Floor, Nariman Bhavan Room No. 609, 6th Floor 227, Nariman Point, Mumbai - 4000021 Aayakar Bhavan, M.K. Road Mumbai - 400020 PAN: AACCR7727A (Appellant) (Respondent) M/s. Regency Property Investment Pvt. Ltd., v. Income Tax Officer – 3(3)(4) 77, 7th Floor, Nariman Bhavan Room No. 672, 6th Floor 227, Nariman Point, Mumbai - 4000021 Aayakar Bhavan, M.…

M/S. Kallakurichi Co-Operative Sugar Mills Ltd., Kallakurichi vs. ACIT, Villupuram

In the result, the appeals filed by the assessee in ITA

ITA 410/CHNY/2020[2012-13]Status: DisposedITAT Chennai25 Apr 2022AY 2012-13

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.369/Chny/2019 & Ita Nos.409 & 410/Chny/2020 िनधा"रण वष" /Assessment Year: 2015-16 & Assessment Years: 2011-12 & 2012-13 V. M/S.Kallakurichi Co-Operative- The Asst. Commissioner- Sugar Mills Unit-Ii, Of Income Tax, Cs11, Kachirapalayam, Villupuram Circle, Kallakurichi, Villupuram. Villupuram. [Pan: Aaaak 0655 Q] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Respondent: Mr.Sanat Kumar Raha
Section 143Section 143(3)Section 147Section 2(19)Section 56Section 80PSection 80P(2)(d)

…determining the value of closing stock. The ld. AR relied on the following judgments for the proposition that consistency to be followed in income-tax proceedings: 1. United Commercial Bank v. CIT (240 ITR 355)(SC) 2. CIT v. Woodward Governor India P. Ltd. (312 ITR 254)(SC) 3. Merck Ltd. v. DCIT (2 ITR (Trib)-OL 629 (Mumbai) 4. CIT v. Dhampur Sugar Mills Ltd. (360 ITR 82) (Allahabad) In our opinion, each assessment year is an independent assessment of unit and the wrong method of accounting followed by the assessee cannot be appropriated. In our opinion, the above components are not income from the business o…

M/S. Kallakurichi Co-Operative Sugar Mills Ltd., Kallakurichi vs. ACIT, Villupuram

In the result, the appeals filed by the assessee in ITA

ITA 409/CHNY/2020[2011-12]Status: DisposedITAT Chennai25 Apr 2022AY 2011-12

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.369/Chny/2019 & Ita Nos.409 & 410/Chny/2020 िनधा"रण वष" /Assessment Year: 2015-16 & Assessment Years: 2011-12 & 2012-13 V. M/S.Kallakurichi Co-Operative- The Asst. Commissioner- Sugar Mills Unit-Ii, Of Income Tax, Cs11, Kachirapalayam, Villupuram Circle, Kallakurichi, Villupuram. Villupuram. [Pan: Aaaak 0655 Q] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Respondent: Mr.Sanat Kumar Raha
Section 143Section 143(3)Section 147Section 2(19)Section 56Section 80PSection 80P(2)(d)

…determining the value of closing stock. The ld. AR relied on the following judgments for the proposition that consistency to be followed in income-tax proceedings: 1. United Commercial Bank v. CIT (240 ITR 355)(SC) 2. CIT v. Woodward Governor India P. Ltd. (312 ITR 254)(SC) 3. Merck Ltd. v. DCIT (2 ITR (Trib)-OL 629 (Mumbai) 4. CIT v. Dhampur Sugar Mills Ltd. (360 ITR 82) (Allahabad) In our opinion, each assessment year is an independent assessment of unit and the wrong method of accounting followed by the assessee cannot be appropriated. In our opinion, the above components are not income from the business o…

M/S. Kallakurichi Co-Operative Sugar Mills Ltd., Kallakurichi vs. ACIT, Villupuram

In the result, the appeals filed by the assessee in ITA

ITA 369/CHNY/2019[2015-16]Status: DisposedITAT Chennai25 Apr 2022AY 2015-16

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.369/Chny/2019 & Ita Nos.409 & 410/Chny/2020 िनधा"रण वष" /Assessment Year: 2015-16 & Assessment Years: 2011-12 & 2012-13 V. M/S.Kallakurichi Co-Operative- The Asst. Commissioner- Sugar Mills Unit-Ii, Of Income Tax, Cs11, Kachirapalayam, Villupuram Circle, Kallakurichi, Villupuram. Villupuram. [Pan: Aaaak 0655 Q] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Respondent: Mr.Sanat Kumar Raha
Section 143Section 143(3)Section 147Section 2(19)Section 56Section 80PSection 80P(2)(d)

…determining the value of closing stock. The ld. AR relied on the following judgments for the proposition that consistency to be followed in income-tax proceedings: 1. United Commercial Bank v. CIT (240 ITR 355)(SC) 2. CIT v. Woodward Governor India P. Ltd. (312 ITR 254)(SC) 3. Merck Ltd. v. DCIT (2 ITR (Trib)-OL 629 (Mumbai) 4. CIT v. Dhampur Sugar Mills Ltd. (360 ITR 82) (Allahabad) In our opinion, each assessment year is an independent assessment of unit and the wrong method of accounting followed by the assessee cannot be appropriated. In our opinion, the above components are not income from the business o…

JCIT (OSD), Corporate Circle - 1 (1), Chennai vs. M/S. Aban Offshore Ltd., Chennai

In the result, appeal filed by the Revenue in ITA

ITA 185/CHNY/2020[2012-13]Status: DisposedITAT Chennai06 Apr 2022AY 2012-13

Bench: Shri V. Durga Rao, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.1812/Chny/2019 &

For Appellant: Mr.P.Murali Mohan, CA
Section 143(3)

…, if such assets are acquired within India. Further, it is a well settled principles of law from the decision of various courts, including the decision of the Hon’ble Supreme Court in the case of CIT v. Woodward Governor India Pvt. Ltd., reported in [2009] 312 ITR 254 (SC) that Forex loss difference on account of re-statement of laibility as on the date of balance sheet, was an item of expenditure u/s.37(1) of the Act, even if such loss pertains to loans/liabilities relates to acquisition of asset. The Hon’ble Supreme Court in the case of CIT v. Tata Iron & Steel Co. Ltd., reported in [1998] 231 ITR 285 (SC…

DCIT, Chennai vs. M/S. Aban Offshore Ltd., Chennai

In the result, appeal filed by the Revenue in ITA

ITA 3142/CHNY/2019[2010-11]Status: DisposedITAT Chennai06 Apr 2022AY 2010-11

Bench: Shri V. Durga Rao, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.1812/Chny/2019 &

For Appellant: Mr.P.Murali Mohan, CA
Section 143(3)

…, if such assets are acquired within India. Further, it is a well settled principles of law from the decision of various courts, including the decision of the Hon’ble Supreme Court in the case of CIT v. Woodward Governor India Pvt. Ltd., reported in [2009] 312 ITR 254 (SC) that Forex loss difference on account of re-statement of laibility as on the date of balance sheet, was an item of expenditure u/s.37(1) of the Act, even if such loss pertains to loans/liabilities relates to acquisition of asset. The Hon’ble Supreme Court in the case of CIT v. Tata Iron & Steel Co. Ltd., reported in [1998] 231 ITR 285 (SC…

Aban Offshore Limited, Chennai vs. DCIT Corporate Circle 1(1), Chennai

In the result, appeal filed by the Revenue in ITA

ITA 3063/CHNY/2019[2010-11]Status: DisposedITAT Chennai06 Apr 2022AY 2010-11

Bench: Shri V. Durga Rao, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.1812/Chny/2019 &

For Appellant: Mr.P.Murali Mohan, CA
Section 143(3)

…, if such assets are acquired within India. Further, it is a well settled principles of law from the decision of various courts, including the decision of the Hon’ble Supreme Court in the case of CIT v. Woodward Governor India Pvt. Ltd., reported in [2009] 312 ITR 254 (SC) that Forex loss difference on account of re-statement of laibility as on the date of balance sheet, was an item of expenditure u/s.37(1) of the Act, even if such loss pertains to loans/liabilities relates to acquisition of asset. The Hon’ble Supreme Court in the case of CIT v. Tata Iron & Steel Co. Ltd., reported in [1998] 231 ITR 285 (SC…

Jt.CIT.(OSD), Circle-1(1)(1), Ahmedabad vs. Axis Bank Limited, Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 956/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad29 Mar 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No. 852/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2015-2016 Axis Bank Limited, J.C.I.T., “Trishul”, 3Rd Floor, Vs. Circle-1(1)(1), Opp. Samtheshwar Mahadev, Ahmedabad. Near Law Garden, Ellisbridge, Ahmedabad-380006. Pan: Aaacu2414K

For Appellant: Shri S.N. Soparkar Sr. Advocate with Shri Parin Shah, A.RFor Respondent: Shri Vijaykumar Jaiswal, CIT.D.R
Section 133Section 14ASection 43D

…t and such risk cannot be calculated as can be done in case of a sale of manufactured product. Bank guarantee is a service and not sale of product. Considering the facts and circumstances of the case, the judgments in the case of Woodward Governor India P Ltd 312 ITR 254 and the case laws cited regarding real profits or commercial principles , permissible change in method are not applicable to the facts of the appellant's case. Any actual expenses or loss on account of payment while discharging obligation under the guarantee is always claimed and allowed to the appellant according to the accepted accounting metho…

Axis Bank Limited, Ahmedabad vs. Jt.CIT., Circle-1(1)(1), Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 852/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad29 Mar 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No. 852/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2015-2016 Axis Bank Limited, J.C.I.T., “Trishul”, 3Rd Floor, Vs. Circle-1(1)(1), Opp. Samtheshwar Mahadev, Ahmedabad. Near Law Garden, Ellisbridge, Ahmedabad-380006. Pan: Aaacu2414K

For Appellant: Shri S.N. Soparkar Sr. Advocate with Shri Parin Shah, A.RFor Respondent: Shri Vijaykumar Jaiswal, CIT.D.R
Section 133Section 14ASection 43D

…t and such risk cannot be calculated as can be done in case of a sale of manufactured product. Bank guarantee is a service and not sale of product. Considering the facts and circumstances of the case, the judgments in the case of Woodward Governor India P Ltd 312 ITR 254 and the case laws cited regarding real profits or commercial principles , permissible change in method are not applicable to the facts of the appellant's case. Any actual expenses or loss on account of payment while discharging obligation under the guarantee is always claimed and allowed to the appellant according to the accepted accounting metho…