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.

Assistant Commissioner of Income Tax Circle-1, Bellary vs. Shri Vazhyiel House Narayanan Kutty Menon, Bellary

In the result, the revenue’s appeal is partly allowed for statistical purposes

ITA 1545/BANG/2018[2014-15]Status: DisposedITAT Bangalore05 Oct 2021AY 2014-15

Bench: Shri Chandra Poojari & Shri George George K.Assessment Year : 2014-15

For Appellant: Shri B.K. Singh, CIT(DR)(ITAT), BengaluruFor Respondent: Shri B.S. Balachandran, Advocate

…such circumstances, it was appropriate to recognise such revenue, only when it is reasonably certain that ultimate collection will be made. He referred to decision of Hon’ble Supreme Court in case of CIT vs Woodward Governor India Pvt.Ltd., reported in (2009) 312 ITR 254, wherein, Hon’ble Court held that, profits and gains of previous year are required to be computed in accordance with relevant accounting standard. Referring to decision of Hon’ble Supreme Court in case of JK industries Ltd vs UOI, reported in (2008) 297 ITR 176, Ld.Counsel submitted that, rules by which inventories are to be valued are laid down…

Pr Commissioner of vs. M/S Subex Ltd

In the result, appeal stands dismissed

ITA/684/2015HC Karnataka01 Oct 2021

Bench: S.SUJATHA,RAVI V HOSMANI

Section 143Section 2Section 260Section 260ASection 263Section 35D

…IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF OCTOBER, 2021 PRESENT THE HON’BLE MRS.JUSTICE S.SUJATHA AND THE HON’BLE MR. JUSTICE RAVI V. HOSMANI I.T.A.No.684/2015 BETWEEN : PR. COMMISSIONER OF INCOME TAX-VI, CENTRAL REVENUE BUILDINGS, QUEENS ROAD, BANGALORE-560 001. ...APPELLANT (BY SRI JEEVAN J. NEERALGI, ADV. A/W SRI T.N.C.SRIDHAR, ADV. FOR SRI E.I.SANMATHI, ADV.) AND : M/s SUBEX LTD., RMZ ECOWORLD, DEVARABISANAHALLI, OUTER RING ROAD, BANGALORE-560 037. PAN: AABCS 9255R. …RESPONDENT (BY SRI CHYTHANYA K.K., ADV.) THI…

Assistant Commissioner of Income Tax-5(2)(1), Mumbai vs. M/S. Jnj Holdings Pvt. Ltd, Mumbai

ITA 5413/MUM/2019[2013-14]Status: DisposedITAT Mumbai29 Sept 2021AY 2013-14

Bench: Shri S. Rifaur Rahman () & Shri Ravish Sood () & Asst. Commissioner Of M/S Jnj Holdings Pvt. Income Tax, Vs. Ltd,Raval Building No.1, Circle 5(2)(1), R. No. 525, 2Nd Floor, 428, Aayakar Bhavan, Bhadkamkar Marg, M.K. Road, Mumbai – 400 004 Mumbai – 400 020 Pan No.Aaacj2047D (Revenue) (Assessee)

For Appellant: Shri Hiro Rai, A.RFor Respondent: Ms. Usha Gaikwad, D.R
Section 143(1)Section 143(3)Section 147Section 45JSection 73

…te details before A.O., but A.O. simply brushed aside everything and merely stated that the liability is contingent. The learned Counsel for the assessee relied on the case of Hon'ble Supreme Court in the case of CIT vs. Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC). On the other hand, the learned Sr. Departmental Representative relied on the orders of the lower authorities and also filed copy of instruction No. 3/2010 dated 23.3.2010, wherein, tax implication of forward foreign exchange contracts is explained. She particularly referred to the following paragraphs of this circular:- “As the revenue impl…

Assistant Commissioner of Income Tax-5(2)(1), Mumbai vs. M/S. Jnj Holdings Pvt. Ltd, Mumbai

ITA 5412/MUM/2019[2009-10]Status: DisposedITAT Mumbai29 Sept 2021AY 2009-10

Bench: Shri S. Rifaur Rahman () & Shri Ravish Sood () & Asst. Commissioner Of M/S Jnj Holdings Pvt. Income Tax, Vs. Ltd,Raval Building No.1, Circle 5(2)(1), R. No. 525, 2Nd Floor, 428, Aayakar Bhavan, Bhadkamkar Marg, M.K. Road, Mumbai – 400 004 Mumbai – 400 020 Pan No.Aaacj2047D (Revenue) (Assessee)

For Appellant: Shri Hiro Rai, A.RFor Respondent: Ms. Usha Gaikwad, D.R
Section 143(1)Section 143(3)Section 147Section 45JSection 73

…te details before A.O., but A.O. simply brushed aside everything and merely stated that the liability is contingent. The learned Counsel for the assessee relied on the case of Hon'ble Supreme Court in the case of CIT vs. Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC). On the other hand, the learned Sr. Departmental Representative relied on the orders of the lower authorities and also filed copy of instruction No. 3/2010 dated 23.3.2010, wherein, tax implication of forward foreign exchange contracts is explained. She particularly referred to the following paragraphs of this circular:- “As the revenue impl…

Edelcap Securities Ltd, Mumbai vs. ACIT, Circle 3(1)(2), Mumbai

In the result, all the appeals of the Revenue as well as the assessee are partly allowed

ITA 6889/MUM/2018[2013-14]Status: DisposedITAT Mumbai28 Sept 2021AY 2013-14
Section 115JSection 143(3)

…rofits, unless there is an provision in the tax laws that warrant a different method of computing the income. The assessee also placed reliance on the decisions of the Hon‟ble Supreme Court in the case of CIT vs. Woodward Governor India Pvt. Ltd., reported in 312 ITR 254; Oil and Natural Gas Corporation Ltd., (ONGC) vs. CIT reported in 322 ITR 180; United Commercial Bank vs. CIT reported in 240 ITR 355. Apart from this, assessee also placed reliance on the decision of this Tribunal in the case of Edelweiss Capital Ltd., vs. ITO in ITA No.5324/Mum/2007, Edelweiss Securities Ltd., in ITA No.2193/Mum/2009, ITA No.77…

The Principal Commissioner of Income Tax vs. M/S. Apollo Tyres Ltd

Appeal is allowed in part as indicated

ITA/44/2017HC Kerala22 Sept 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE VIJU ABRAHAM

For Appellant: M/S. APOLLO TYRES LTDFor Respondent: THE PRINCIPAL COMMISSIONER OF INCOME TAX
Section 143(3)Section 144CSection 144C(5)Section 35Section 43ASection 92C

…argument is untenable, unless and until the fallacy in the findings recorded by the Tribunal is established within the scope of Section 260A. The Revenue has not made up a ground for interfering with the findings recorded by the Tribunal. 10 (2009) 312 ITR 254 (SC) 11 (2010) 322 ITR 180 (SC) ITA No.44/2017 -48- Suffice to note that the decision of the Supreme Court in Woodward Governor India P. Ltd. and ONGC are applicable to the case on hand. The correct proposition is applied and the Tribunal had recorded a finding in favour of the assessee. We do not, for brevity, propose to…

Gmr Hospitality and Retail Limited (Successor to Hyderabad Duty Free Retail Limited), Hyderabad vs. Income Tax Officer, Ward-2(2), Hyderabad

In the result, appeal of the assessee is allowed

ITA 325/HYD/2020[2016-17]Status: DisposedITAT Hyderabad16 Sept 2021AY 2016-17

Bench: Shri A. Mohan Alankamony & Shri S.S. Godaraa.Y. 2016-17 Gmr Hospitality & Retail Vs. Income Tax Officer, Limited (Successor Of Ward-2(2), Hyderabad Duty Free Retail Hyderabad. Limited), Hyderabad. Pan: Aadcg 2928 F (Appellant) (Respondent) Assessee By Shri Sunil Jain, Ar Revenue By Smt. M. Narmada, Dr Date Of Hearing: 02/09/2021 Date Of Pronouncement: 16/09/2021 Order

Section 143(3)Section 145Section 28Section 29Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “A”, HYDERABAD (Through Virtual Hearing) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER A.Y. 2016-17 GMR Hospitality and Retail VS. Income Tax Officer, Limited (Successor of Ward-2(2), Hyderabad Duty Free Retail Hyderabad. Limited), Hyderabad. PAN: AADCG 2928 F (Appellant) (Respondent) Assessee by Shri Sunil Jain, AR Revenue by Smt. M. Narmada, DR Date of hearing: 02/09/2021 Date of pronouncement: 16/09/2021 ORDER PER A. MOHAN ALANKAMONY, A.M: This appeal is filed by the assessee with a delay of 65 days before the Tri…

Carlson Hospitality Marketing (India) Pvt. Ltd., Gurgaon vs. DCIT, Circle-3(1), New Delhi

The appeal of the assessee is allowed

ITA 4192/DEL/2018[2011-12]Status: DisposedITAT Delhi14 Sept 2021AY 2011-12

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 143Section 143(1)Section 143(2)Section 234ASection 68

…ture is in the nature of capital transaction. Foreign exchange fluctuation loss on account of revenue transaction, as is the case of the assessee, is allowable u/s 37 of the Act. The Ld. AR relied upon the decision of CIT Vs. Woodward Governor India Pvt. Ltd. 312 ITR 254 (S.C) as well as Oil and Natural Gas Corporation Ltd. Vs. CIT 332 ITR 180 (S.C). The Ld. AR also relied upon the decision of the Hon’ble Madhya Pradesh High Court in case of MP Financial Corporation Vs. CIT 165 ITR 765. 9. The Ld. DR relied upon the order of the CIT(A) and Assessment Order. 10. We have heard both the parties and perused all the…

Pr Commissioner of Income Tax vs. M/S United Spirits Ltd

ITA/548/2015HC Karnataka02 Sept 2021

Bench: S.SUJATHA,RAVI V HOSMANI

Section 143Section 260Section 260A

…IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF SEPTEMBER, 2021 PRESENT THE HON’BLE MRS.JUSTICE S.SUJATHA AND THE HON’BLE MR. JUSTICE RAVI V. HOSMANI I.T.A.No.548/2015 c/w I.T.A.No.37/2010 IN I.T.A.No.548/2015: BETWEEN : 1 . PR. COMMISSIONER OF INCOME TAX C.R.BUILDINGS, QUEENS ROAD BANGALORE - 560001 2 . DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(3) BANGALORE ...APPELLANTS (BY SRI E.I.SANMATHI, ADV.) AND : M/s UNITED SPIRITS LTD., 6TH FLOOR, U.B.TOWERS UB CITY, 24, VITTAL MALLYA ROAD BANGALORE - 560 001 PAN…

M/S. Appollo Tyres Ltd vs. The Assistant Commissioner of Income Tax

ITA/249/2015HC Kerala26 Aug 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE VIJU ABRAHAM

Section 40

…e principle in Woodward Governor India P. Ltd case is not on all fours acceptable. The decision allows notional loss/gain on revenue account but not on capital account. This entailed rejection of the claim of the assessee. The Assessing Officer 2 (2009) 312 ITR 254 (SC) I.T.A. No. 249/2015 -20- recorded that the Woodward Governor India P. Ltd case deals with revenue loss and the situation in the case on hand deals with capital assets. The result of the brief discussion of the Assessing Officer is that: “unrealised foreign exchange gain of Rs.1,63,97,541/- is disallowed and added to the total inco…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the cross objection filed by the assessee is partly allowed for statistical purpose

ITA 737/CHNY/2018[2013-14]Status: DisposedITAT Chennai18 Aug 2021AY 2013-14

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 2145 & 2210/Chny/2017, Ita 737/Chny/2018 िनधा"रण वष" / Assessment Years: 2012-13, 2008-09 & 2013-14 The Deputy Commissioner Of M/S. The India Cements Ltd., Income Tax, V. No.93, Coromandel Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita No: 2038/Chny/2017 िनधा"रण वष" / Assessment Year: 2009-10 M/S. The India Cements Ltd., The Deputy Commissioner Of Income Tax, V. No.93, Coromandal Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent) & Co No.: 76/Chny/2018 (In Ita No.737/Chny/2018) िनधा"रण वष" / Assessment Year: 2013-14 M/S. The India Cements Ltd., The Deputy Commissioner Of Income Tax, V. No.93, Coromandal Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri G. Srinivasa Rao, CIT
Section 115VSection 14A

….1,22,35,875/- to capital account. 33 I.T.A. Nos. 2145, 2210, 2038/Chny/2017, 737/Chny/2018 & C.O No.76/Chny/2018 15.2 On appeal, the ld.CIT(A) by following the decision of Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India P. Ltd, (2009) 312 ITR 254 deleted addition made by the AO by holding that when the assessee has utilized the proceeds of FCCBs only towards day to day business operation, i.e., towards working capital requirement of business and not for purchase of any capital asset, any loss incurred on redemption of said FCCBs on account of fluctuation in foreign currency cannot be trea…

DCIT-2(1), Chennai vs. The India Cements Ltd, Chennai

In the result, the cross objection filed by the assessee is partly allowed for statistical purpose

ITA 2210/CHNY/2017[2008-09]Status: DisposedITAT Chennai18 Aug 2021AY 2008-09

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 2145 & 2210/Chny/2017, Ita 737/Chny/2018 िनधा"रण वष" / Assessment Years: 2012-13, 2008-09 & 2013-14 The Deputy Commissioner Of M/S. The India Cements Ltd., Income Tax, V. No.93, Coromandel Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita No: 2038/Chny/2017 िनधा"रण वष" / Assessment Year: 2009-10 M/S. The India Cements Ltd., The Deputy Commissioner Of Income Tax, V. No.93, Coromandal Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent) & Co No.: 76/Chny/2018 (In Ita No.737/Chny/2018) िनधा"रण वष" / Assessment Year: 2013-14 M/S. The India Cements Ltd., The Deputy Commissioner Of Income Tax, V. No.93, Coromandal Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri G. Srinivasa Rao, CIT
Section 115VSection 14A

….1,22,35,875/- to capital account. 33 I.T.A. Nos. 2145, 2210, 2038/Chny/2017, 737/Chny/2018 & C.O No.76/Chny/2018 15.2 On appeal, the ld.CIT(A) by following the decision of Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India P. Ltd, (2009) 312 ITR 254 deleted addition made by the AO by holding that when the assessee has utilized the proceeds of FCCBs only towards day to day business operation, i.e., towards working capital requirement of business and not for purchase of any capital asset, any loss incurred on redemption of said FCCBs on account of fluctuation in foreign currency cannot be trea…

DCIT, Corporate Circle -2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the cross objection filed by the assessee is partly allowed for statistical purpose

ITA 2145/CHNY/2017[2012-13]Status: DisposedITAT Chennai18 Aug 2021AY 2012-13

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 2145 & 2210/Chny/2017, Ita 737/Chny/2018 िनधा"रण वष" / Assessment Years: 2012-13, 2008-09 & 2013-14 The Deputy Commissioner Of M/S. The India Cements Ltd., Income Tax, V. No.93, Coromandel Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita No: 2038/Chny/2017 िनधा"रण वष" / Assessment Year: 2009-10 M/S. The India Cements Ltd., The Deputy Commissioner Of Income Tax, V. No.93, Coromandal Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent) & Co No.: 76/Chny/2018 (In Ita No.737/Chny/2018) िनधा"रण वष" / Assessment Year: 2013-14 M/S. The India Cements Ltd., The Deputy Commissioner Of Income Tax, V. No.93, Coromandal Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri G. Srinivasa Rao, CIT
Section 115VSection 14A

….1,22,35,875/- to capital account. 33 I.T.A. Nos. 2145, 2210, 2038/Chny/2017, 737/Chny/2018 & C.O No.76/Chny/2018 15.2 On appeal, the ld.CIT(A) by following the decision of Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India P. Ltd, (2009) 312 ITR 254 deleted addition made by the AO by holding that when the assessee has utilized the proceeds of FCCBs only towards day to day business operation, i.e., towards working capital requirement of business and not for purchase of any capital asset, any loss incurred on redemption of said FCCBs on account of fluctuation in foreign currency cannot be trea…

The India Cements Ltd., Chennai vs. DCIT Corporate Circle 2(1), Chennai

In the result, the cross objection filed by the assessee is partly allowed for statistical purpose

ITA 2038/CHNY/2017[2009-10]Status: DisposedITAT Chennai18 Aug 2021AY 2009-10

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 2145 & 2210/Chny/2017, Ita 737/Chny/2018 िनधा"रण वष" / Assessment Years: 2012-13, 2008-09 & 2013-14 The Deputy Commissioner Of M/S. The India Cements Ltd., Income Tax, V. No.93, Coromandel Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita No: 2038/Chny/2017 िनधा"रण वष" / Assessment Year: 2009-10 M/S. The India Cements Ltd., The Deputy Commissioner Of Income Tax, V. No.93, Coromandal Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent) & Co No.: 76/Chny/2018 (In Ita No.737/Chny/2018) िनधा"रण वष" / Assessment Year: 2013-14 M/S. The India Cements Ltd., The Deputy Commissioner Of Income Tax, V. No.93, Coromandal Towers, Corporate Circle – 2(1), Santhome High Road, Chennai – 34. R.A. Puram, Chennai – 600 028. Pan: Aaact 1728P (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri G. Srinivasa Rao, CIT
Section 115VSection 14A

….1,22,35,875/- to capital account. 33 I.T.A. Nos. 2145, 2210, 2038/Chny/2017, 737/Chny/2018 & C.O No.76/Chny/2018 15.2 On appeal, the ld.CIT(A) by following the decision of Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India P. Ltd, (2009) 312 ITR 254 deleted addition made by the AO by holding that when the assessee has utilized the proceeds of FCCBs only towards day to day business operation, i.e., towards working capital requirement of business and not for purchase of any capital asset, any loss incurred on redemption of said FCCBs on account of fluctuation in foreign currency cannot be trea…

Joint Commissioner of Income Tax Ltu (OSD) Circle-1, Bangalore vs. M/S Toyota Kirloskar Motors Pvt Ltd, Bangalore

In the result, the appeal filed by the Revenue and assessee are partly allowed for statistical purposes

ITA 2016/BANG/2018[2013-14]Status: DisposedITAT Bangalore18 Aug 2021AY 2013-14

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.P.C.Kincha, CAFor Respondent: Sri.Muzaffar Hussaain, CIT-DR
Section 192

…rsion rate is 54.93. On 31.03.2013 the US$ to Rupee conversion rate is 54.30. This has already been claimed and allowed by the AO. 89. Thus, I find that the AO has followed the judgment of Hon’ble Supreme Court in CIT v. Woodward Governor India P. Ltd. [2009] 312 ITR 254 reiterated in Oil and Natural Gas Corporation Limited v. CIT [2010] 322 ITR 180 and CIT v. Maruti Udyog Ltd [2010] 320 ITR 729 in letter and spirit. The unrealized loss due to foreign exchange fluctuation on the last date of the accounting year in respect of loans taken for revenue purposes has been allowed as deduction by AO to the assessee. 90.…

M/S. Toyota Kirloskar Motor Private Limited, Bangalore vs. The Assistant Commissioner of Income Tax, Circle-1, Ltu, Bangalore

In the result, the appeal filed by the Revenue and assessee are partly allowed for statistical purposes

ITA 1972/BANG/2018[2013-14]Status: DisposedITAT Bangalore18 Aug 2021AY 2013-14

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.P.C.Kincha, CAFor Respondent: Sri.Muzaffar Hussaain, CIT-DR
Section 192

…rsion rate is 54.93. On 31.03.2013 the US$ to Rupee conversion rate is 54.30. This has already been claimed and allowed by the AO. 89. Thus, I find that the AO has followed the judgment of Hon’ble Supreme Court in CIT v. Woodward Governor India P. Ltd. [2009] 312 ITR 254 reiterated in Oil and Natural Gas Corporation Limited v. CIT [2010] 322 ITR 180 and CIT v. Maruti Udyog Ltd [2010] 320 ITR 729 in letter and spirit. The unrealized loss due to foreign exchange fluctuation on the last date of the accounting year in respect of loans taken for revenue purposes has been allowed as deduction by AO to the assessee. 90.…

ACIT, Circle- 5(1), New Delhi vs. Bumi Hiway (India) Ltd., New Delhi

In the result, all the appeals of the Revenue and assessee and cross objection of the assessee are allowed for the statistical purposes

ITA 601/DEL/2018[2013-14]Status: DisposedITAT Delhi10 Aug 2021AY 2013-14

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

…he trading asset of the assessee is a trading loss. ii. A loss suffered by the assessee on account of exchange differences as on the date of balance sheet is an allowable expenditure u/s 37(1) of the I.T Act (CIT Vs Woodward Governor India Pvt. Limited (2009) 312 ITR 254 (SC)/179 Taxman 326 (SC), thereby confirming the order of the Hon’ble Delhi High Court in CIT Vs. Woodward Governor India Pvt. Limited 294 ITR 451 (Del), where it was held that the change in the value of foreign currency in relation to Indian currency is a fait accompli and not a notional one and therefore, the increase in liability due to foreig…

ACIT, Circle- 5(1), New Delhi vs. Bumi Hiway (India) Ltd., New Delhi

In the result, all the appeals of the Revenue and assessee and cross objection of the assessee are allowed for the statistical purposes

ITA 600/DEL/2018[2012-13]Status: DisposedITAT Delhi10 Aug 2021AY 2012-13

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

…he trading asset of the assessee is a trading loss. ii. A loss suffered by the assessee on account of exchange differences as on the date of balance sheet is an allowable expenditure u/s 37(1) of the I.T Act (CIT Vs Woodward Governor India Pvt. Limited (2009) 312 ITR 254 (SC)/179 Taxman 326 (SC), thereby confirming the order of the Hon’ble Delhi High Court in CIT Vs. Woodward Governor India Pvt. Limited 294 ITR 451 (Del), where it was held that the change in the value of foreign currency in relation to Indian currency is a fait accompli and not a notional one and therefore, the increase in liability due to foreig…

Bumi Hiway (India) P.Ltd, New Delhi vs. DCIT, Circle-5(1), New Delhi

In the result, all the appeals of the Revenue and assessee and cross objection of the assessee are allowed for the statistical purposes

ITA 488/DEL/2018[2012-13]Status: DisposedITAT Delhi10 Aug 2021AY 2012-13

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

…he trading asset of the assessee is a trading loss. ii. A loss suffered by the assessee on account of exchange differences as on the date of balance sheet is an allowable expenditure u/s 37(1) of the I.T Act (CIT Vs Woodward Governor India Pvt. Limited (2009) 312 ITR 254 (SC)/179 Taxman 326 (SC), thereby confirming the order of the Hon’ble Delhi High Court in CIT Vs. Woodward Governor India Pvt. Limited 294 ITR 451 (Del), where it was held that the change in the value of foreign currency in relation to Indian currency is a fait accompli and not a notional one and therefore, the increase in liability due to foreig…

DCIT, New Delhi vs. M/S Ajay Enterprises Pvt. Ltd., New Delhi

Appeal is dismissed and appeal of the assessee in ITA No

ITA 2083/DEL/2015[2012-13]Status: DisposedITAT Delhi30 Jul 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Dr. B.R.R. Kumar

For Appellant: S/Shri Pradeep Dinodia & R.KFor Respondent: Date of hearing
Section 143(3)Section 41(1)

…4, 2083-D-2015, 1704-D-2015 c. Hon’ble Delhi High Court in the case of CIT vs. Woodward Governor of India Private Limited (294 ITR 451). d. Hon’ble Supreme Court and Hon’ble Delhi High Court in the case of CIT Vs. Woodward Governor of India Pvt. Ltd. (Supra) 312 ITR 254 (SC). 17. On the proposition that reasonably estimated liability on the date of drawing the accounts has to be accounted for and are legally allowable, following judgments are relied upon: a. Supreme Court in the case of Bharat Earth Movers (2004) 245 ITR 428 (SC). b. Metal Box Company of India Ltd. V. Their Workmen (1969) 73 ITR 53 (SC). c. Cal…