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.

Ajay Enterprises Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Appeal is dismissed and appeal of the assessee in ITA No

ITA 1704/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…

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

Appeal is dismissed and appeal of the assessee in ITA No

ITA 5776/DEL/2014[2011-12]Status: DisposedITAT Delhi30 Jul 2021AY 2011-12

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…

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

Appeal is dismissed and appeal of the assessee in ITA No

ITA 1349/DEL/2013[2009-10]Status: DisposedITAT Delhi30 Jul 2021AY 2009-10

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…

M/S Gogga Gurusanthaiah and Brothers, Hospet vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeals filed by the assessee are partly allowed as indicated above

ITA 3319/BANG/2018[2015-16]Status: DisposedITAT Bangalore28 Jul 2021AY 2015-16

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

For Appellant: Sri.Sivaprasad Reddy, AdvocateFor Respondent: Sri.Pradeep Kumar, CIT-DR
Section 37

…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…

M/S Gogga Gurusanthaiah and Brothers, Hospet vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeals filed by the assessee are partly allowed as indicated above

ITA 3318/BANG/2018[2014-15]Status: DisposedITAT Bangalore28 Jul 2021AY 2014-15

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

For Appellant: Sri.Sivaprasad Reddy, AdvocateFor Respondent: Sri.Pradeep Kumar, CIT-DR
Section 37

…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…

M/S Gogga Gurusanthaiah and Brothers, Hospet vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeals filed by the assessee are partly allowed as indicated above

ITA 3317/BANG/2018[2013-14]Status: DisposedITAT Bangalore28 Jul 2021AY 2013-14

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

For Appellant: Sri.Sivaprasad Reddy, AdvocateFor Respondent: Sri.Pradeep Kumar, CIT-DR
Section 37

…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…

Vvf (India) Ltd., Mumbai vs. Ass CIT Circle- 8 (3)(2), Mumbai

In the result, appeal is allowed

ITA 7834/MUM/2019[2016-17]Status: DisposedITAT Mumbai26 Jul 2021AY 2016-17

Bench: Shri Saktijit Dey & Shri Manoj Kumar Aggarwalassessment Year: 2016-17 Vvf (India) Ltd., Acit- Circle (3)(2), Plot 109, Sion Fort Garden, Aayakar Bhavan, M.K. Road, Sion (East), Churchgate, Mumbai - 400022 Vs. Mumbai - 400020 Pan: Aadcv4970G (Appellant) (Respondent) Assessee By : Madhur Aggarwal (Ar) Revenue By : Usha Gaikwad (Dr) Date Of Hearing: 20/05/2021 Date Of Pronouncement: 26/07/2021

For Appellant: Madhur Aggarwal (AR)For Respondent: Usha Gaikwad (DR)

…similar situation. He submitted, now, it is fairly well settled that loss arising out of unsettled forward contract is allowable. In this regard, he relied upon the following decisions:- Assessment Year: 2016-17 1. “CIT Vs. Woodward Governor India (P) Ltd. (312 ITR 254)-Supreme Court. 2. CIT Vs. Badridas Gauridas (P) Ltd. (261 ITR 256)-Bombay HC 3. CIT Vs. D. Chetan & Co. (ITA No. 278/2014)-Bombay HC 4. Pr. CIT Vs. International Gold Company Ltd. (ITA No. 1827/2016)- Bombay HC 5. Pr. CIT Vs. Vishinda Diamonds (ITA No. 1841/2016)-Bombay HC 6. Pr. CIT Vs. Osia Gems (ITA No. 1221/2016) Bombay HC 7. Essel Propack L…

M/S. Ocwen Financial Solutions Private Limited, Bengaluru vs. Joint Commissioner of Income Tax, Special Range-5, Bengaluru

In the result, appeal filed by the assessee for assessment year

ITA 2292/BANG/2019[2010-11]Status: DisposedITAT Bangalore12 Jul 2021AY 2010-11

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year : 2012-13 Ocwen Financial Solutions Pvt. Ltd. Pritech Park, Survey No.51 To 64/4 Acit Circle- Block No.12, 5Th Floor Of B Wing & 6Th Floor Of 5(1)(2) Vs. A Wing, Bellandur Village, Marathahalli Ring Bengaluru Road, Bengaluru 560 103 Pan No : Aaaco3764E Appellant Respondent Assessment Year : 2010-11 Ocwen Financial Solutions Pvt. Ltd. Jcit Spl.Range-5 Vs. Bangalore Bangalore Appellant Respondent Appellant By : Shri K.R. Vasudevan, A.R. Respondent : Ms. Neera Malhotra & By Shri Kannan Narayanan, D.Rs Date Of Hearing : 23.06.2021 Date Of Pronouncement : 12.07.2021 O R D E R

For Appellant: Shri K.R. Vasudevan, A.RFor Respondent: Ms. Neera Malhotra &
Section 10ASection 143(3)

…loss would be of capital nature." In consonance with the above ruling, the Hon'ble Supreme Court in its subsequent verdict in the cases of (i) CIT v. Woodward Governor India (P) Limited and (ii) in CIT v. Honda Siel Power Products Limited reported in (2009) 312 ITR 254 (SC) observed thus - "15. For the reasons given hereinabove, we hold that, in the present case, the "loss" suffered by the assessee on account of the exchange difference as on the date of the balance sheet is an item of expenditure under s. 37(1) of the 1961 Act. 8.1.5. Taking into account the facts of the issue and also in conformity with the le…

Ocwen Financial Solutions Pvt Ltd, Bangalore vs. Assistant Commissioner of Income Tax Circle-5(1)(2), Bangalore

In the result, appeal filed by the assessee for assessment year

ITA 153/BANG/2017[2012-13]Status: DisposedITAT Bangalore12 Jul 2021AY 2012-13

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year : 2012-13 Ocwen Financial Solutions Pvt. Ltd. Pritech Park, Survey No.51 To 64/4 Acit Circle- Block No.12, 5Th Floor Of B Wing & 6Th Floor Of 5(1)(2) Vs. A Wing, Bellandur Village, Marathahalli Ring Bengaluru Road, Bengaluru 560 103 Pan No : Aaaco3764E Appellant Respondent Assessment Year : 2010-11 Ocwen Financial Solutions Pvt. Ltd. Jcit Spl.Range-5 Vs. Bangalore Bangalore Appellant Respondent Appellant By : Shri K.R. Vasudevan, A.R. Respondent : Ms. Neera Malhotra & By Shri Kannan Narayanan, D.Rs Date Of Hearing : 23.06.2021 Date Of Pronouncement : 12.07.2021 O R D E R

For Appellant: Shri K.R. Vasudevan, A.RFor Respondent: Ms. Neera Malhotra &
Section 10ASection 143(3)

…loss would be of capital nature." In consonance with the above ruling, the Hon'ble Supreme Court in its subsequent verdict in the cases of (i) CIT v. Woodward Governor India (P) Limited and (ii) in CIT v. Honda Siel Power Products Limited reported in (2009) 312 ITR 254 (SC) observed thus - "15. For the reasons given hereinabove, we hold that, in the present case, the "loss" suffered by the assessee on account of the exchange difference as on the date of the balance sheet is an item of expenditure under s. 37(1) of the 1961 Act. 8.1.5. Taking into account the facts of the issue and also in conformity with the le…

DCIT, New Delhi vs. M/S. Paramount Communication Pvt. Ltd., New Delhi

In the result, ITA No.767/Del/2014 is partly allowed,

ITA 2288/DEL/2017[2010-11]Status: DisposedITAT Delhi15 Jun 2021AY 2010-11

Bench: Shri R.K. Panda & Ms. Suchitra Kamble[Assessment Year: 2009-10]

Section 43A

…I to the Companies Act continued to provide that effect of exchange fluctuation be adjusted in fixed assets. It was corrected in March 2009 by Notification 31.3.2009. 20.7. Referring to the decision in the case of CIT vs Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC) @ 265], he submitted that AS-11 is mandatory and is required to ITANo.1378 & 2288/Del/2017 be followed in computing the income as required by section 145(1) read with section 145(2) of the Act. Referring to the decision of the Hon’ble Delhi High Court in the case of CIT v. Virtual Soft Systems Ltd. (2012) 341 ITR 593(Del) @ 602 – 603, he su…

Paramount Communications Ltd., New Delhi vs. DCIT, New Delhi

In the result, ITA No.767/Del/2014 is partly allowed,

ITA 1378/DEL/2017[2010-11]Status: DisposedITAT Delhi15 Jun 2021AY 2010-11

Bench: Shri R.K. Panda & Ms. Suchitra Kamble[Assessment Year: 2009-10]

Section 43A

…I to the Companies Act continued to provide that effect of exchange fluctuation be adjusted in fixed assets. It was corrected in March 2009 by Notification 31.3.2009. 20.7. Referring to the decision in the case of CIT vs Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC) @ 265], he submitted that AS-11 is mandatory and is required to ITANo.1378 & 2288/Del/2017 be followed in computing the income as required by section 145(1) read with section 145(2) of the Act. Referring to the decision of the Hon’ble Delhi High Court in the case of CIT v. Virtual Soft Systems Ltd. (2012) 341 ITR 593(Del) @ 602 – 603, he su…

M/S. Paramount Communictions Ltd., New Delhi vs. DCIT, New Delhi

In the result, ITA No.767/Del/2014 is partly allowed,

ITA 767/DEL/2014[2009-10]Status: DisposedITAT Delhi15 Jun 2021AY 2009-10

Bench: Shri R.K. Panda & Ms. Suchitra Kamble[Assessment Year: 2009-10]

Section 43A

…I to the Companies Act continued to provide that effect of exchange fluctuation be adjusted in fixed assets. It was corrected in March 2009 by Notification 31.3.2009. 20.7. Referring to the decision in the case of CIT vs Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC) @ 265], he submitted that AS-11 is mandatory and is required to ITANo.1378 & 2288/Del/2017 be followed in computing the income as required by section 145(1) read with section 145(2) of the Act. Referring to the decision of the Hon’ble Delhi High Court in the case of CIT v. Virtual Soft Systems Ltd. (2012) 341 ITR 593(Del) @ 602 – 603, he su…

DCIT Cir 3(2), Mumbai vs. Idea Cellular Ltd ( Successor to Idea Mobile Communication Ltd), Mumbai

In the result, the appeal of the assessee is allowed for statistical purpose and the appeal of the Revenue is dismissed

ITA 6908/MUM/2013[2005-06]Status: DisposedITAT Mumbai07 Jun 2021AY 2005-06

Bench: Shri Mahavir Singh & Shri Rajesh Kumarassessment Year: 2005-06

For Appellant: Shri J.D. Mistry, A.RFor Respondent: Ms. Shreekala Pardeshi, D.R
Section 35ASection 37(1)

…from the above the appellant has shown that it has charged only that portion of foreign exchange loss which pertains to revenue items. Resultantly, the case of the appellant is covered by the decision of the Hon'ble Supreme Court in CIT Vs. Woodward Governor (312 ITR 254), discussed above. Accordingly, 1 agree with the appellant that the loss for Rs.96,80,000/- ought to be allowed as a deduction in computing it's business income. The AO is directed to allow the sum of Rs. 96,80,000/- in the computation of income of -the appellant. This ground of appeal is accordingly allowed.” 33. After hearing both the parties…

Idea Cellular Limited, Mumbai vs. DCIT Circle 11(1), New Delhi

In the result, the appeal of the assessee is allowed for statistical purpose and the appeal of the Revenue is dismissed

ITA 6573/MUM/2013[2005-06]Status: DisposedITAT Mumbai07 Jun 2021AY 2005-06

Bench: Shri Mahavir Singh & Shri Rajesh Kumarassessment Year: 2005-06

For Appellant: Shri J.D. Mistry, A.RFor Respondent: Ms. Shreekala Pardeshi, D.R
Section 35ASection 37(1)

…from the above the appellant has shown that it has charged only that portion of foreign exchange loss which pertains to revenue items. Resultantly, the case of the appellant is covered by the decision of the Hon'ble Supreme Court in CIT Vs. Woodward Governor (312 ITR 254), discussed above. Accordingly, 1 agree with the appellant that the loss for Rs.96,80,000/- ought to be allowed as a deduction in computing it's business income. The AO is directed to allow the sum of Rs. 96,80,000/- in the computation of income of -the appellant. This ground of appeal is accordingly allowed.” 33. After hearing both the parties…

DCIT - 4(2)(2), Mumbai vs. Gbtl Ltd. (Formerly Known As M/S. Grasim Bhiwani Textiles Ltd.), Mumbai

In the result, Revenue’s appeal is partly allowed

ITA 2668/MUM/2018[2013-14]Status: DisposedITAT Mumbai28 May 2021AY 2013-14

Bench: Shri Shamim Yahya, Am & Amarjit Singh, Jm Dcit-4(2)(2) M/S. Gbtl Ltd. Room No.640, 6Th Floor (Formerly Known As M/S. Grasim Aaykar Bhawan, Bhiwani Textiles Ltd.) Vs. M.K.Road 409, Cotton Exchange Building Mumbai-400 020 Kalbadevi Road, Mumbai-400 002 Pan/Gir No. Aaccg9347F (Appellant) : (Respondent)

For Appellant: Shri T.S.Khalsa-DRFor Respondent: Dr. K.Shivaram-AR
Section 43B

…er asked the appellant to justify why such loss was claimed. The appellant contended that the loss was AS-11 and Section 209(3) of the Companies Act. The appellant also relied on the Hon'ble Supreme Court judgment in the case of Woodward Governor India P Ltd (312 ITR 254} in support of its claim. The Id Assessing Officer was of the view that the decision of Woodward Governor India P Ltd [supra] was in the context of sundry creditors/debtors and was not relevant. The Id Assessing Officer distinguished forward contracts from future contracts and held that forwards are OTC in nature, customized, less liquid, without…

M/S Ekta Housing Pvt. Ltd., Mumbai vs. Dy. CIT Central Circle-6(2), Mumbai

The appeal of the revenue is dismissed

ITA 1732/MUM/2019[2013-14]Status: DisposedITAT Mumbai24 May 2021AY 2013-14

Bench: Shri S.Rifaur Rahman () & Shri Ravish Sood ()

…substituted by percentage completion method in the absence of any finding by the A.O that the completed contract method distorts the profits of a particular year.In fact, the Hon‟ble Supreme Court in the case of CIT Vs. Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC) had observed that a system of accounting consistently followed is ordinarily expected to be accepted unless the system does not reflect true profits. It is, thus, in the background of the aforesaid settled position of law that we shall deal with the view taken by the CIT(A) that the income element embedded in the on-money on sale of flat was…

Sri. B. Rudragouda, Bellary vs. The Deputy Commissioner of Income Tax, Circle- 1, Bellary

In the result, the appeal is allowed

ITA 315/BANG/2020[2016-17]Status: DisposedITAT Bangalore15 Apr 2021AY 2016-17

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Chythanya K.K., AdvocateFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 37Section 37(1)

…rming the expenditure as penal. In the following decisions the Courts have held that the department cannot adopt double standards:- New Delhi Television Ltd vs. DCIT, [2020] 116 taxmann.com 151 (SC) [Para 34]; CIT vs. Woodward Governor India (P.) Ltd., [2009] 312 ITR 254 (SC) [Para 10]; ACIT vs Vijay Gopal Jindal [2008] 24 SOT 296 (DELHI) [Para 25] Balmukund Acharya vs. DCIT, (2009) 310 ITR 310 (Bom); Basant Poddar vs. CIT (2019) 412 ITR 529 (Kar); Girish Bansal v. UOI (2016) 384 ITR 161 (Delhi); Y. Rathiesh vs. CIT, (2015) 372 ITR 73 (AP); Raja Malwinder Singh vs. CWT [2011] 334 ITR 115 (P 86 HI; Azimganj Estate…

Sri. B. Rudragouda, Bellary vs. The Assistant Commissioner of Income Tax, Circle- 1, Bellary

In the result, the appeal is allowed

ITA 314/BANG/2020[2015-16]Status: DisposedITAT Bangalore15 Apr 2021AY 2015-16

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Chythanya K.K., AdvocateFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 37Section 37(1)

…rming the expenditure as penal. In the following decisions the Courts have held that the department cannot adopt double standards:- New Delhi Television Ltd vs. DCIT, [2020] 116 taxmann.com 151 (SC) [Para 34]; CIT vs. Woodward Governor India (P.) Ltd., [2009] 312 ITR 254 (SC) [Para 10]; ACIT vs Vijay Gopal Jindal [2008] 24 SOT 296 (DELHI) [Para 25] Balmukund Acharya vs. DCIT, (2009) 310 ITR 310 (Bom); Basant Poddar vs. CIT (2019) 412 ITR 529 (Kar); Girish Bansal v. UOI (2016) 384 ITR 161 (Delhi); Y. Rathiesh vs. CIT, (2015) 372 ITR 73 (AP); Raja Malwinder Singh vs. CWT [2011] 334 ITR 115 (P 86 HI; Azimganj Estate…

DCIT, Cir-1(1)(1), Ahmedabad vs. Adani Power Maharashtra Ltd., Ahmedabad

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

ITA 1471/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad17 Mar 2021AY 2014-15

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedआयकर अपील सं./Ita No. 1471/Ahd/2018 "नधा"रण वष"/Asstt. Year: 2014-2015 D.C.I.T., Adani Power Maharashtra Ltd., Cir.1(1)(1), Vs. 9Th Floor, Shikhar Building, Ahmedabad. Nr.Mithakhali Circle, Navrangpura, Ahmedabad-380009. Pan: Aagca4102J

For Appellant: Shri S.N. Soparkar, Sr.Advocate with Shri Parin Shah, A.RFor Respondent: Shri Mohd. Usman, CIT.D.R
Section 36(1)(Hi)Section 37(1)

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ D’’ BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER And SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 1471/AHD/2018 "नधा"रण वष"/Asstt. Year: 2014-2015 D.C.I.T., Adani Power Maharashtra Ltd., Cir.1(1)(1), Vs. 9th Floor, Shikhar Building, Ahmedabad. Nr.Mithakhali Circle, Navrangpura, Ahmedabad-380009. PAN: AAGCA4102J (Applicant) (Respondent) Revenue by : Shri Mohd. Usman, CIT.D.R Assessee by : Shri S.N. Soparkar, Sr.Advocate with Shri Parin Shah, A.R सुनवाई क" तार"…

M/S Prestige Estates Projects Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-18(1), Bangalore

In the result, the appeal of the assessee is allowed

ITA 813/BANG/2019[2014-15]Status: DisposedITAT Bangalore02 Mar 2021AY 2014-15

Bench: Shri N.V.Vasudevan, Vp & Shri Chandra Poojari, Am

For Appellant: Sri.Padamchand Khincha, CAFor Respondent: Smt.R.Premi, JCIT-DR
Section 191Section 194Section 201Section 201(1)Section 206ASection 4

…ITR 33 has held that the accounts regularly maintained have to be taken as correct unless there are strong and sufficient reasons to indicate that they are unreliable. The Supreme Court has made identical observations in CIT v. Woodward Governor India P. Ltd 312 ITR 254. 3.45 According to the learned AR, the treatment given in the books of account are to be taken as correct, unless the books of account are rejected by the revenue for strong and sufficient reasons. In the instant case, as stated above, the learned TDS officer has not given cogent reasons for disregarding the accounting characterisation of the ref…