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.

Tanglin Developments Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result, assessee’s appeals are allowed

ITA 143/BANG/2021[2013-14]Status: DisposedITAT Bangalore31 Jan 2022AY 2013-14

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri C Ramesh, C.AFor Respondent: Shri Jairam Raipura, CIT(DR OSD)
Section 43A

…and hence not allowable. Exchange fluctuation loss allowable on reinstatement 20. He also relied on the following judgments for the above issue: i) CIT V. Indian Toners & Developers Ltd (2010) 326 ITR 435 (Delhi) ii) Woodward Governor India (F) Ltd (2009) 312 ITR 254 (SC) iii) Oil & Natural Gas Corprn. Ltd V. CIT, Dehradun (2010) 189 Taxman 292 (SC) ITA No.143 - 146/Bang/2021 Page 8 of 31 iv) M/s.Coffeeday Global Ltd for the A.Ys.2013-14 & 2014-15 in ITA Nos.3040 & 3041/Bang/2018. v) Pr.Commissioner of Income Tax V. Albasta Wholesale Services Ltd (2020) 117 Taxmann.com 166 (SC) vi) DCIT, Circle-13(1), New D…

Bramhani Industries Limited, Jammalamadugu, Kadapa vs. DCIT, Circle-1(3), Hyderabad

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

ITA 512/HYD/2017[2010-11]Status: DisposedITAT Hyderabad06 Jan 2022AY 2010-11

Bench: Shri A. Mohan Alankamony & Sri Chandra Mohan Garga.Y. 2010-11 Bramhani Industries Limited, Vs. Dcit, Jammalamadugu. Circle-1(3), Pan: Aadcb 1666 M Hyderabad. (Appellant) (Respondent) Ay: 2010-11 Dcit, Vs. Bramhani Industries Circle-1(2), Limited, Hyderabad. Jammalamadugu. Pan: Aadcb 1666 M (Appellant) (Respondent) Assessee By Sri Gowtham Jain Revenue By Sri K.V. Aravind, Sr. Standing Counsel For Dr Date Of Hearing: 12/10/2021 Date Of Pronouncement: 06/01/2022 Order

Section 144Section 234ASection 249(3)Section 68

…holding the order of the ld.AO who had made addition of Rs. 15,99,60,041/- on account of notional gain arising out of the foreign exchange fluctuation relying on the decision of the Hon’ble Apex Court in the case CIT vs. Woodward Governor India Pvt Limited in 312 ITR 254 wherein the facts are not identical. 3) The Ld. CIT (A) has erred in upholding the order of the ld.AO who had made addition of Rs. 61,95,95,194/- by holding that the business of the assessee has not commenced operation accordingly the expense has to be capitalised. 4) The Ld. CIT (A) has erred in upholding the order of the ld.AO who had made addi…

DCIT, Circle-1(2), Hyderabad vs. Bramhani Industries Limited, Jammalamadugu, Ysr Dist.

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

ITA 398/HYD/2017[2010-11]Status: DisposedITAT Hyderabad06 Jan 2022AY 2010-11

Bench: Shri A. Mohan Alankamony & Sri Chandra Mohan Garga.Y. 2010-11 Bramhani Industries Limited, Vs. Dcit, Jammalamadugu. Circle-1(3), Pan: Aadcb 1666 M Hyderabad. (Appellant) (Respondent) Ay: 2010-11 Dcit, Vs. Bramhani Industries Circle-1(2), Limited, Hyderabad. Jammalamadugu. Pan: Aadcb 1666 M (Appellant) (Respondent) Assessee By Sri Gowtham Jain Revenue By Sri K.V. Aravind, Sr. Standing Counsel For Dr Date Of Hearing: 12/10/2021 Date Of Pronouncement: 06/01/2022 Order

Section 144Section 234ASection 249(3)Section 68

…holding the order of the ld.AO who had made addition of Rs. 15,99,60,041/- on account of notional gain arising out of the foreign exchange fluctuation relying on the decision of the Hon’ble Apex Court in the case CIT vs. Woodward Governor India Pvt Limited in 312 ITR 254 wherein the facts are not identical. 3) The Ld. CIT (A) has erred in upholding the order of the ld.AO who had made addition of Rs. 61,95,95,194/- by holding that the business of the assessee has not commenced operation accordingly the expense has to be capitalised. 4) The Ld. CIT (A) has erred in upholding the order of the ld.AO who had made addi…

Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore vs. M/S Thought Works Technologies India Private Limited, Bangalore

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

ITA 590/BANG/2019[2012-13]Status: HeardITAT Bangalore04 Jan 2022AY 2012-13

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.V.Sridhar, CAFor Respondent: Sri.Jairam Raipura, CIT-DR
Section 143(3)Section 43A

…rds referred to by the assessee, the AO was of the view that these submissions are irrelevant as the amounts are not deductible under the Income Tax Act. As regards Hon’ble Supreme Court’s judgment in the case of CIT Vs Woodward Governor India Pvt Ltd [(2009) 312 ITR 254 (SC)], the Assessing Officer was of the view that this decision does not apply to the fats of the case. It was held that “no doubt, foreign exchange loss in respect of import payable and export receivable is an allowable expenditure” but in the present case the transactions are not in respect of exports and imports and “therefore, these expenses…

Thoughtworks Technologies (India) Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle -7(1)(1), Bangalore

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

ITA 580/BANG/2019[2012-13]Status: HeardITAT Bangalore04 Jan 2022AY 2012-13

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.V.Sridhar, CAFor Respondent: Sri.Jairam Raipura, CIT-DR
Section 143(3)Section 43A

…rds referred to by the assessee, the AO was of the view that these submissions are irrelevant as the amounts are not deductible under the Income Tax Act. As regards Hon’ble Supreme Court’s judgment in the case of CIT Vs Woodward Governor India Pvt Ltd [(2009) 312 ITR 254 (SC)], the Assessing Officer was of the view that this decision does not apply to the fats of the case. It was held that “no doubt, foreign exchange loss in respect of import payable and export receivable is an allowable expenditure” but in the present case the transactions are not in respect of exports and imports and “therefore, these expenses…

ITO WD 11(1)(3), Mumbai vs. Salient Traders P.Ltd, Mumbai

In the result , appeal of the assessee for A

ITA 3059/MUM/2017[2012-13]Status: DisposedITAT Mumbai23 Dec 2021AY 2012-13
Section 143(3)

…ns before the ld. CIT(A):- a) The decision of Hon’ble Supreme Court in the case of Bharat Earth Movers Ltd., vs. CIT reported in 245 ITR 428(SC) b) The decision of Hon’ble Supreme Court in the case of CIT vs. Woodward Governor of India Pvt. Ltd., reported in 312 ITR 254. c) The decision of Hon’ble Supreme Court in the case of Rotork Controls India Pvt. Ltd., vs. CIT reported in 314 ITR 62 among others. 3.10. The assessee also submitted that against various provisions made, it has in subsequent years discharged the liabilities to certain extent and even as on 31/03/2016 certain sums are still payable to the resp…

Bridge & Building Construction Co. Pvt. Ltd., Kolkata vs. ACIT, Central Circle - 2(1), Kolkata

ITA 534/KOL/2018[2014-15]Status: DisposedITAT Kolkata22 Dec 2021AY 2014-15

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…ansaction the ld AO should have made addition in respect of commission earned on such transaction not entire transaction as undisclosed income of the assessee. m] The Hon'ble The Supreme Court in the cases of CIT v. M/s. Woodward Governor India P. Ltd. [2009] 312 ITR 254 (SC) and CIT v. Realest Builders & Services Ltd [2008] 170 TAXMAN 218 (SC) has emphasized the importance of method of accounting regularly employed by the taxpayer. The Supreme Court in the case of Realest Builders & Services Ltd. has held that the tax department needs to provide facts and figures that the impugned method of accounting adopted by…

Bridge & Building Construction Co. Pvt. Ltd., Kolkata vs. DCIT, Central Circle - 2(1), Kolkata

ITA 533/KOL/2018[2012-13]Status: DisposedITAT Kolkata22 Dec 2021AY 2012-13

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…ansaction the ld AO should have made addition in respect of commission earned on such transaction not entire transaction as undisclosed income of the assessee. m] The Hon'ble The Supreme Court in the cases of CIT v. M/s. Woodward Governor India P. Ltd. [2009] 312 ITR 254 (SC) and CIT v. Realest Builders & Services Ltd [2008] 170 TAXMAN 218 (SC) has emphasized the importance of method of accounting regularly employed by the taxpayer. The Supreme Court in the case of Realest Builders & Services Ltd. has held that the tax department needs to provide facts and figures that the impugned method of accounting adopted by…

DCIT, Circle - 10(1), Kolkata vs. M/S. Bridge & Building Construction Co. Pvt. Ltd., Kolkata

ITA 375/KOL/2018[2014-15]Status: DisposedITAT Kolkata22 Dec 2021AY 2014-15

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…ansaction the ld AO should have made addition in respect of commission earned on such transaction not entire transaction as undisclosed income of the assessee. m] The Hon'ble The Supreme Court in the cases of CIT v. M/s. Woodward Governor India P. Ltd. [2009] 312 ITR 254 (SC) and CIT v. Realest Builders & Services Ltd [2008] 170 TAXMAN 218 (SC) has emphasized the importance of method of accounting regularly employed by the taxpayer. The Supreme Court in the case of Realest Builders & Services Ltd. has held that the tax department needs to provide facts and figures that the impugned method of accounting adopted by…

DCIT, Circle - 10(1), Kolkata vs. M/S. Bridge & Building Construction Co. Pvt. Ltd., Kolkata

ITA 374/KOL/2018[2012-13]Status: DisposedITAT Kolkata22 Dec 2021AY 2012-13

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…ansaction the ld AO should have made addition in respect of commission earned on such transaction not entire transaction as undisclosed income of the assessee. m] The Hon'ble The Supreme Court in the cases of CIT v. M/s. Woodward Governor India P. Ltd. [2009] 312 ITR 254 (SC) and CIT v. Realest Builders & Services Ltd [2008] 170 TAXMAN 218 (SC) has emphasized the importance of method of accounting regularly employed by the taxpayer. The Supreme Court in the case of Realest Builders & Services Ltd. has held that the tax department needs to provide facts and figures that the impugned method of accounting adopted by…

Bridge & Building Construction Co. Pvt. Ltd., Kolkata vs. ITO, Ward - 10(1), Kolkata

ITA 2116/KOL/2018[2013-14]Status: DisposedITAT Kolkata22 Dec 2021AY 2013-14

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…ansaction the ld AO should have made addition in respect of commission earned on such transaction not entire transaction as undisclosed income of the assessee. m] The Hon'ble The Supreme Court in the cases of CIT v. M/s. Woodward Governor India P. Ltd. [2009] 312 ITR 254 (SC) and CIT v. Realest Builders & Services Ltd [2008] 170 TAXMAN 218 (SC) has emphasized the importance of method of accounting regularly employed by the taxpayer. The Supreme Court in the case of Realest Builders & Services Ltd. has held that the tax department needs to provide facts and figures that the impugned method of accounting adopted by…

Tremco Roffing & Facility Services Pvt Ltd, Chennai vs. ACIT, Corp Cir-3(1), Chennai

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

ITA 3350/CHNY/2018[2012-12]Status: DisposedITAT Chennai22 Dec 2021AY 2012-12

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita No.3350/Chny/2018 िनधा"रण वष" /Assessment Year: 2012-13 M/S. Tremco Roofing & Facility The Asst. Commissioner Of Services Pvt. Ltd., Income Tax, No.60, B-1, First Floor, Vs. Corporate Circle-3(1), Ganesh Towers, First Avenue, Chennai. 100 Feet Road, Ashok Nagar, Chennai – 600 083. [Pan: Aadct 5389H] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से/ Appellant By : Shri Farookh Irani, Advocate ""थ" की ओर से /Respondent By : Shri S. Bharath, Cit सुनवाई की तारीख/Date Of Hearing : 25.10.2021 घोषणा की तारीख /Date Of Pronouncement : 22.12.2021 आदेश / O R D E R Per V. Durga Rao: This Appeal Filed By The Assessee Is Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-11, Chennai In I.T.A No.85/2016-17 Dated 26.09.2018 Relevant To The Assessment Year 2012- 13. 2. The Grounds Of Appeal Raised By The Assessee Are As Under: “Based On The Facts & In The Circumstances Of The Case & In Law, Tremco Roofing & Facility Services Private Limited (Hereinafter Referred To As 'The Appellant') Craves Leave To Prefer An Appeal Against The Order Dated 26 September 2018

For Appellant: Shri Farookh Irani, AdvocateFor Respondent: Shri S. Bharath, CIT
Section 250

…आयकर अपीलीय अिधकरण, ‘ए’ "ायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI "ी वी दुगा" राव, "ाियक सद" एवं "ी जी मंजूनाथा, लेखा सद" के सम" BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3350/Chny/2018 िनधा"रण वष" /Assessment Year: 2012-13 M/s. Tremco Roofing & Facility The Asst. Commissioner of Services Pvt. Ltd., Income Tax, No.60, B-1, First Floor, Vs. Corporate Circle-3(1), Ganesh Towers, First Avenue, Chennai. 100 Feet Road, Ashok Nagar, Chennai – 600 083. [PAN: AADCT 5389H] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से/ Appe…

Grasim Industries Ltd vs. Addl. CIT Range 6(3)

In the result, appeal filed by the assesse and revenue are partly allowed

ITA 4753/MUM/2004[2002-03]Status: DisposedITAT Mumbai14 Dec 2021AY 2002-03

Bench: Shri Saktijit Dey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blegrasim Industries Limited V. Addl. Cit, Range 6(3) Corporate Finance Division 5Th Floor, Room No. 505 Aditya Birla Centre “A” Wing Aayakar Bhavan 2Nd Floor, S.K. Ahire Marg, Worli Mumbai Mumbai-400025 Pan: Aaacg4464B Appellant Respondent Dy. Cit, Range 6(3), V. Grasim Industries Limited, 5Th Floor, Room No. 505, Corporate Finance Division, Aayakar Bhavan, Aditya Birla Centre, “A” Wing, Mumbai-20. 2Nd Floor, S.K. Ahire Marg Worli, Mumbai-400025 Pan: Aaacg4464B Appellant Respondent Assessee By : Shri J.D. Mistry Revenue By : Shri Sandeep Raj & Shri Vijay Kumar Menon

For Appellant: Shri J.D. MistryFor Respondent: Shri Sandeep Raj &
Section 143(3)Section 36(1)(vii)Section 43BSection 80Section 80H

…’s own case in its favour in assessment years 1998-99 to 2000-01. Furthermore, the Department is not in appeal on this ground before the Hon’ble High Court against the Tribunal order. The Hon’ble Supreme Court in the case of Woodward Governor India Pvt. Ltd., 312 ITR 254 (SC) has decided this issue in favour of the assessee. Accordingly, we do not find any reason to interfere with the order of the ld. CIT(A) deleting the disallowance made on account of exchange fluctuation loss on conversion of trading assets and liabilities on balance sheet date.” 66. Respectfully following the above decision, we sustain the or…

Principal Commissioner of Income Tax, Kolkata-4, Kolkata vs. Eveready Industries India Limited

In the result, the appeal (ITAT/96/2017) fails and stands

ITAT/96/2017HC Calcutta29 Nov 2021

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

Section 260ASection 43B

…OD-8 ITAT/96/2017 IA No.GA/2/2017 (Old No.GA/830/2017) IN THE HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE PRINCIPAL COMMISSIONER OF INCOME TAX, KOLKATA-4, KOLKATA -Versus- EVEREADY INDUSTRIES INDIA LIMITED Appearance: Mr. Smarajit Roychowdhury, Adv. Mr. Madhu Jana, Adv. ...for the appellant. Mr. Asim Choudhury, Adv. ...for the respondent. BEFORE: The Hon’ble JUSTICE T.S. SIVAGNANAM -And- The Hon’ble JUSTICE HIRANMAY BHATTACHARYYA Date : 29th November, 2021. The Court : This appeal by the revenue filed under Section 260A of the Income Tax Act (th…

JCIT, Bangalore vs. M/S Biocon Ltd., Bangalore

In the result appeal filed by assessee for assessment year

ITA 558/BANG/2016[2011-12]Status: DisposedITAT Bangalore12 Nov 2021AY 2011-12

Bench: Shri B.R. Baskaran & Smt Beena Pillai

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Muzaffar Hussain, CIT (DR)
Section 143(3)Section 144CSection 144C(5)Section 92C

…7 On account of such revaluation, profits are offered to tax and taxed and by the same token, loss, if any, is also to be allowed. Placing reliance on the decision of Hon’ble Supreme Court in case of CIT vs Woodward Governor India Pvt.Ltd., reported in (2009) 312 ITR 254, it has been submitted that loss suffered by the assessee on account of forest derivatives as on the date of balance-sheet is an item of expenditure under section 37(1) of the Act. Hon’ble Supreme Court while considering this issue observed that the expression “any expenditure” has been used in section 37 of the Act to cover both “expenses incurr…

Biocon Limited, Bangalore vs. JCIT, Bangalore

In the result appeal filed by assessee for assessment year

ITA 557/BANG/2016[2011-12]Status: DisposedITAT Bangalore12 Nov 2021AY 2011-12

Bench: Shri B.R. Baskaran & Smt Beena Pillai

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Muzaffar Hussain, CIT (DR)
Section 143(3)Section 144CSection 144C(5)Section 92C

…7 On account of such revaluation, profits are offered to tax and taxed and by the same token, loss, if any, is also to be allowed. Placing reliance on the decision of Hon’ble Supreme Court in case of CIT vs Woodward Governor India Pvt.Ltd., reported in (2009) 312 ITR 254, it has been submitted that loss suffered by the assessee on account of forest derivatives as on the date of balance-sheet is an item of expenditure under section 37(1) of the Act. Hon’ble Supreme Court while considering this issue observed that the expression “any expenditure” has been used in section 37 of the Act to cover both “expenses incurr…

Andritz Hydro P Ltd, Bhopal vs. Pr CIT-1, Bhopal

ITA 199/IND/2020[2015-16]Status: DisposedITAT Indore29 Oct 2021AY 2015-16

Bench: Shri Manish Borad & Ms. Madhumita Royvirtual Hearing

Section 115JSection 253Section 263

…f section 263 of the Act 3.Erred in invoking revision proceedings under section 263 of the Act without considering that the Appellant having followed the decision of Hon'ble Supreme Court of India in the case of CIT vs Woodward Governor India Private Limited (312 ITR 254) and other jurisdictionally binding decisions, there cannot be any prejudice to the interest of the revenue. 4.Erred in initiating erred in initiating revisionary assessment proceedings under section 263 of the Act without appreciating that proceedings under section 263 of the Act cannot be invoked in case where the view taken by the Ld. PCIT is…

Axis Bank Limited, Ahmedabad vs. The Dy.CIT, Circle-1 Now Circle-1(1)(1), Ahmedabad

In the result appeal of the Revenue is partly allowed for statistical purposes

ITA 311/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Oct 2021AY 2010-11

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedsl. Ita No(S) Asset. Appeal(S) By No(S) Year(S) Appellant Vs. Respondent Appellant Respondent 1. 311/Ahd/2016 2010-11 Axis Bank Limited, D.C.I.T., “Trishul”, 3Rd Floor, Circle-1(1)(1) Opp. Samtheshwar Ahmedabad. Mahadev Near Law Garden, Ellisbridge, Ahmedabad-380006. Pan: Aaacu2414K 2. 2176/Ahd/2016 2011-12 Axis Bank Limited, D.C.I.T., “Trishul”, 3Rd Floor, Circle-1(1)(1) Opp. Samtheshwar Ahmedabad. Mahadev Near Law Garden, Ellisbridge, Ahmedabad-380006. Pan: Aaacu2414K 3. 2173/Ahd/2016 2011-12 D.C.I.T., Axis Bank Limited, Circle-1(1)(1) Ahmedabad. Ahmedabad. Pan: Aaacu2414K 4. 165/Ahd/2017 2012-13 Axis Bank Limited, D.C.I.T., Ahmedabad. Circle-1(1)(1) Ahmedabad. Pan: Aaacu2414K 5. 287/Ahd/2017 2012-13 D.C.I.T., Axis Bank Limited, Circle-1(1)(1) Ahmedabad. Ahmedabad. Pan: Aaacu2414K 6-7 520 & 2013-14 Axis Bank Limited, D.C.I.T., 521/Ahd/2018 & Ahmedabad. Circle-1(1)(1) 2014-15 Ahmedabad. Pan: Aaacu2414K 8-9 604 & 605/ 2013-14 D.C.I.T., Axis Bank Limited, Ahd/2018 & Circle-1(1)(1) Ahmedabad. 2014-15 Ahmedabad. Pan: Aaacu2414K

For Appellant: Shri S.N. Soparkar, Sr. Advocate with Smt. Urvashi Shodhan, and Shri Parin Shah,For Respondent: Shri Anshu Prakash, CIT.DR
Section 14A

…ngent and such risk cannot be calculated as canbe done in case of a sale of manufactured product. Bank guarantee :s a service and notsale of prcducl. Considering the facts and circumstances of the case, the judgments inthe case of Woodward Governor India P ld 312 ITR 254 and the case laws citedregarding real profits or commercial principles , permissible change in method are notapplicable to the facts of the appellant's case Any actual expenses or loss on accountof payment while discharging obligation under the guarantee is always claimed andallowed to the aopellant according lo ihe accepted accounting method in…

DCIT, Circle- 12(1), New Delhi vs. Icra Ltd., New Delhi

In the result, the appeals of the Revenue for assessment year 2011-12 and 2012-13 are allowed partly for statistical purposes and Cross Objection of the assessee for assessment year

ITA 5707/DEL/2017[2012-13]Status: DisposedITAT Delhi14 Oct 2021AY 2012-13

Bench: Shri O.P. Kant & Shri Kuldip Singh[Through Video Conferencing] Assessment Year: 2011-12 & Assessment Year: 2012-13

Section 145

…y by courts. In fact, it is mentioned in the aforesaid case, inter alia, “9.2.8 Though discount on premium is nothing but an expenditure U/S 37 (1), it is worth noting that the Hon’ble Supreme Court in the case of CIT vs Woodword Governor India (P) Ltd (2009) 312 ITR 254 (SC) /179 Taxmann 326 has gone to the extent of covering “loss” in certain circumstances within the purview of “expenditure” as used in section 37 (1).... their Lordships noticed that the word “expenditure” has not been defined in the Act. They held that: the word “expenditure” is, therefore, required to be understood in the context in which it i…

DCIT, Circle- 12(1), New Delhi vs. Icra Ltd., New Delhi

In the result, the appeals of the Revenue for assessment year 2011-12 and 2012-13 are allowed partly for statistical purposes and Cross Objection of the assessee for assessment year

ITA 5706/DEL/2017[2011-12]Status: DisposedITAT Delhi14 Oct 2021AY 2011-12

Bench: Shri O.P. Kant & Shri Kuldip Singh[Through Video Conferencing] Assessment Year: 2011-12 & Assessment Year: 2012-13

Section 145

…y by courts. In fact, it is mentioned in the aforesaid case, inter alia, “9.2.8 Though discount on premium is nothing but an expenditure U/S 37 (1), it is worth noting that the Hon’ble Supreme Court in the case of CIT vs Woodword Governor India (P) Ltd (2009) 312 ITR 254 (SC) /179 Taxmann 326 has gone to the extent of covering “loss” in certain circumstances within the purview of “expenditure” as used in section 37 (1).... their Lordships noticed that the word “expenditure” has not been defined in the Act. They held that: the word “expenditure” is, therefore, required to be understood in the context in which it i…