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.

Aceelerated Freeze Drying Co.Ltd, Alappuzha vs. DCIT, Alappuzha

In the result, the appeal of the Revenue is allowed and the appeal of the

ITA 1286/COCH/2005[2002-03]Status: DisposedITAT Cochin28 Jun 2019AY 2002-03

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 2Section 2(14)Section 42Section 50BSection 50B(1)

…ord to establish that the foreign currency transactions were undertaken on capital items. The Assessing Officer also had failed to undertake this exercise. The Hon'ble Supreme Court in the case of CIT Vs. Woodward Governor India Pvt. Ltd. reported in [2009] 312 ITR 254 (SC) had clearly held that the actual payment was not a condition precedent for making adjustment in respect of foreign currency transactions as the end of the closing year. We are therefore, unable to concur or agree with the view of the CIT(A), that liability could arise only when the contract would have matured, as such a stand is totally d…

The ACIT, Circle-2(1)(2), Ahmedabad vs. Mundra International Container Terminal Pvt. Ltd., Kutch

In the result, the appeal of the revenue is dismissed

ITA 2171/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2013-14
For Appellant: Shri S.N. Soparkar, A.RFor Respondent: Shri Alok Singh, CIT-D.R
Section 143(2)Section 14ASection 32

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member ITA Nos. 1117, 2171 & 2172 /Ahd/2017 Assessment Year 2011-12 to 2013-14 The ACIT, Mundra International Circle-2(1)(2), Container Terminal Pvt. Ahmedabad Vs Ltd. New Mundra Port, (Appellant) Navinal Island, Post Box No. 8, Mundra, Kutch PAN: AADCA0917C (Respondent) Revenue by: Shri Alok Singh, CIT-D.R. Assessee by: Shri S.N. Soparkar, A.R. Date of hearing : 18-06-2019 Date of pronouncement : 28-06-2019 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- All the…

The ACIT, Circle-2(1)(2), Ahmedabad vs. M/S. Mundra International Container Terminal Pvt. Ltd., Kutch

In the result, the appeal of the revenue is dismissed

ITA 1117/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2012-13
For Appellant: Shri S.N. Soparkar, A.RFor Respondent: Shri Alok Singh, CIT-D.R
Section 143(2)Section 14ASection 32

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member ITA Nos. 1117, 2171 & 2172 /Ahd/2017 Assessment Year 2011-12 to 2013-14 The ACIT, Mundra International Circle-2(1)(2), Container Terminal Pvt. Ahmedabad Vs Ltd. New Mundra Port, (Appellant) Navinal Island, Post Box No. 8, Mundra, Kutch PAN: AADCA0917C (Respondent) Revenue by: Shri Alok Singh, CIT-D.R. Assessee by: Shri S.N. Soparkar, A.R. Date of hearing : 18-06-2019 Date of pronouncement : 28-06-2019 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- All the…

The Addl.CIT, Range-1, Baroda vs. Gujarat Fluorochemeicals Ltd, Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 548/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2010-11

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e assessee, at the very outset submitted that the issue in dispute is covered by the order of the ITAT passed in 4563/Ahd/2007 (Asstt.Year 2004-05). He further relied upon the judgment of Hon’ble Supreme Court in the case of Woodward Governor India Pvt. Ltd., 312 ITR 254 (SC). On the other hand, the ld.DR relied upon the orders of the Revenue authority. ITA No.1379 and 1380/Ahd/2009 and 13 Others Gujarat Fluorochemicals Ltd. Vs. ACIT 14. We have duly considered rival contentions and gone through the record carefully. The issue is that at the end of the financial year, the assessee has prepared a re-statement of…

Gujarat Flurochemicals Limited, Baroda vs. The Dy.CIT, Circle-1(1), Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 117/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2011-12

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e assessee, at the very outset submitted that the issue in dispute is covered by the order of the ITAT passed in 4563/Ahd/2007 (Asstt.Year 2004-05). He further relied upon the judgment of Hon’ble Supreme Court in the case of Woodward Governor India Pvt. Ltd., 312 ITR 254 (SC). On the other hand, the ld.DR relied upon the orders of the Revenue authority. ITA No.1379 and 1380/Ahd/2009 and 13 Others Gujarat Fluorochemicals Ltd. Vs. ACIT 14. We have duly considered rival contentions and gone through the record carefully. The issue is that at the end of the financial year, the assessee has prepared a re-statement of…

Gujarat Flurochemicals Limited, Baroda vs. The Addl. CIT, Range-1, Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 116/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2010-11

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e assessee, at the very outset submitted that the issue in dispute is covered by the order of the ITAT passed in 4563/Ahd/2007 (Asstt.Year 2004-05). He further relied upon the judgment of Hon’ble Supreme Court in the case of Woodward Governor India Pvt. Ltd., 312 ITR 254 (SC). On the other hand, the ld.DR relied upon the orders of the Revenue authority. ITA No.1379 and 1380/Ahd/2009 and 13 Others Gujarat Fluorochemicals Ltd. Vs. ACIT 14. We have duly considered rival contentions and gone through the record carefully. The issue is that at the end of the financial year, the assessee has prepared a re-statement of…

Tha Addl. CIT, Range-1, Baroda vs. M/S. Gujarat Flurochemicals Limited., Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 106/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2010-11

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e assessee, at the very outset submitted that the issue in dispute is covered by the order of the ITAT passed in 4563/Ahd/2007 (Asstt.Year 2004-05). He further relied upon the judgment of Hon’ble Supreme Court in the case of Woodward Governor India Pvt. Ltd., 312 ITR 254 (SC). On the other hand, the ld.DR relied upon the orders of the Revenue authority. ITA No.1379 and 1380/Ahd/2009 and 13 Others Gujarat Fluorochemicals Ltd. Vs. ACIT 14. We have duly considered rival contentions and gone through the record carefully. The issue is that at the end of the financial year, the assessee has prepared a re-statement of…

Gujarat Fluorochemeicals Ltd, Baroda vs. The Dy.CIT., Circle-1(1)(1), Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 135/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2008-09

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e assessee, at the very outset submitted that the issue in dispute is covered by the order of the ITAT passed in 4563/Ahd/2007 (Asstt.Year 2004-05). He further relied upon the judgment of Hon’ble Supreme Court in the case of Woodward Governor India Pvt. Ltd., 312 ITR 254 (SC). On the other hand, the ld.DR relied upon the orders of the Revenue authority. ITA No.1379 and 1380/Ahd/2009 and 13 Others Gujarat Fluorochemicals Ltd. Vs. ACIT 14. We have duly considered rival contentions and gone through the record carefully. The issue is that at the end of the financial year, the assessee has prepared a re-statement of…

The DCIT, Circle-1(1), Baroda vs. Gujarat Flurochemicals Ltd., Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 2546/AHD/2012[2009-10]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2009-10

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e assessee, at the very outset submitted that the issue in dispute is covered by the order of the ITAT passed in 4563/Ahd/2007 (Asstt.Year 2004-05). He further relied upon the judgment of Hon’ble Supreme Court in the case of Woodward Governor India Pvt. Ltd., 312 ITR 254 (SC). On the other hand, the ld.DR relied upon the orders of the Revenue authority. ITA No.1379 and 1380/Ahd/2009 and 13 Others Gujarat Fluorochemicals Ltd. Vs. ACIT 14. We have duly considered rival contentions and gone through the record carefully. The issue is that at the end of the financial year, the assessee has prepared a re-statement of…

Gujarat Flurochemicals Ltd., Baroda vs. The Dy.CIT., Circle-1(1), Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 2365/AHD/2012[2009-10]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2009-10

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e assessee, at the very outset submitted that the issue in dispute is covered by the order of the ITAT passed in 4563/Ahd/2007 (Asstt.Year 2004-05). He further relied upon the judgment of Hon’ble Supreme Court in the case of Woodward Governor India Pvt. Ltd., 312 ITR 254 (SC). On the other hand, the ld.DR relied upon the orders of the Revenue authority. ITA No.1379 and 1380/Ahd/2009 and 13 Others Gujarat Fluorochemicals Ltd. Vs. ACIT 14. We have duly considered rival contentions and gone through the record carefully. The issue is that at the end of the financial year, the assessee has prepared a re-statement of…

DCIT. B.K.Circle, Palanpur vs. M/S. Forever Gems Pvt. Ltd., Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 1798/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad26 Jun 2019AY 2013-14
For Appellant: Shri S.N. Soparkar &For Respondent: Shri O.P. Sharma, C.I.T. D.R
Section 37(1)Section 43A

…f the considered opinion that such liabilities cannot be treated as unascertained liabilities. 5.2 We also note that the Hon’ble Apex court involving identical facts and circumstances in the case of CIT versus Woodward Governor India Private Ltd. reported in 312 ITR 254 has held as under: “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 section 37(1) of the 1961 Act.” Page 3 of 4 Asstt. Year 2013-14 From the above, it is clear that the trading li…

First Flight Couriers Ltd, Mumbai vs. DCIT 12(2)(1), Mumbai

Appeal stands allowed for statistical purposes

ITA 1324/MUM/2018[2013-14]Status: DisposedITAT Mumbai25 Jun 2019AY 2013-14

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.1324/Mum/2018 (िनधा"रण वष" / Assessment Year: 2013-14) M/S. First Flight Couriers Ltd. Dcit-12(2)(1) बनाम Room No.223, 2Nd Floor नाम नाम/ नाम G-1001/02, Lotus Corporate Park Graham Firth Steel Compound Aaykar Bhavan, M.K. Road Vs. Goregaon (East), Mumbai-400 063. Mumbai-400 020. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacf-0841-R (अपीलाथ"/Appellant) (ू"यथ" / Respondent) : & आयकरअपील सं./ I.T.A. No.2439/Mum/2018 (िनधा"रण वष" / Assessment Year: 2013-14) Dcit-12(2)(1) M/S. First Flight Couriers Ltd. बनाम Room No.223, 2Nd Floor नाम/ नाम नाम G-1001/02, Lotus Corporate Park Aaykar Bhavan, M.K. Road Graham Firth Steel Compound Vs. Mumbai-400 020. Goregaon (East), Mumbai-400 063. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacf-0841-R (अपीलाथ"/Appellant) (ू"यथ" / Respondent) :

For Appellant: Shri Rajesh Agarwal-Ld.ARFor Respondent: Chaudhary Arun Kumar Singh-Ld.DR
Section 115JSection 143(3)

…1 आयकर अपीलीय अिधकरण “एफ” "ायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI "ी श""जीत दे,"ाियक सद" एवं "ी मनोज कुमारअ"वाल, लेखा सद" के सम"। BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ I.T.A. No.1324/Mum/2018 (िनधा"रण वष" / Assessment Year: 2013-14) M/s. First Flight Couriers Ltd. DCIT-12(2)(1) बनाम Room No.223, 2nd floor नाम नाम/ नाम G-1001/02, Lotus Corporate Park Graham Firth Steel Compound Aaykar Bhavan, M.K. Road Vs. Goregaon (East), Mumbai-400 063. Mumbai-400 020. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AAACF-0841-R (अपीलाथ"/Appellant) (ू"यथ" / Respondent) :…

Phoenix Comtrade Private Limited, Mumbai vs. Assistant Commissioner of Income Tax 4(3)(1), Mumbai

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

ITA 383/MUM/2018[2013-14]Status: DisposedITAT Mumbai19 Jun 2019AY 2013-14

Bench: Shri C.N. Prasad () & Shri G Manjunatha () Phoenix Comtrade Pvt Ltd Vs Acit-4(3)(1), Mumbai Office No.403, Swapna Siddhi, Akurli Road, Kandivali (E), Mumbai-400 101 Pan : Aadcp7954N Appellant Respondednt

Section 143(3)Section 144C(5)Section 234BSection 271(1)(c)Section 68Section 92C

…ered as notional loss and the same was allowable u/s 37(1) of the Act. The Ld.AR further submitted that while dealing with the issue, the Tribunal has followed the decision of Hon’ble Supreme Court in the case of CIT vs Woodward Governor India (P.)Ltd (2009) 312 ITR 254 where the issue has been decided by the Hon’ble Supreme Court and held that loss on account of adjustment of loss or gain on account of fluctuation in foreign currency has to be allowed, whether such loss is on account of revenue account or capital 7 ITA 383/Mum/2018 account. The Ld.AR further submitted that facts for the year under considerati…

ACIT, Haridwar vs. M/S Kirby Building Systems India (Uttaranchal) Pvt. Ltd., Haridwar

ITA 2626/DEL/2016[2008-09]Status: DisposedITAT Delhi14 Jun 2019AY 2008-09

Bench: Hon’Ble, Shri G.D. Agrawal & Shri Kuldip Singh

For Appellant: Shri Naveen Agarwal, FCAFor Respondent: Shri Surender Pal, Senior DR
Section 800ISection 80I

…upon the assessment order passed by the AO. However, on the other hand, ld. AR for the assessee relied upon the impugned order passed by the ld. CIT (A) and also relied upon the decision of Hon’ble Supreme Court in CIT vs. Woodward Governor India (P.) Ltd. 312 ITR 254 (SC) and Sutlej Cotton Mills Ltd. vs. CIT 188 ITR 255 (SC). 6. Ld. CIT (A) deleted the addition made by the AO on account of foreign exchange fluctuation by returning following findings :- “6. With regard to the gain on account of foreign exchange fluctuation on ECB Loans, it is observed from the loan agreements furnished before the undersign…

DCIT, New Delhi vs. M/S. Hcl Comnet Ltd., New Delhi

Appeal is dismissed

ITA 4809/DEL/2016[2011-12]Status: DisposedITAT Delhi06 Jun 2019AY 2011-12

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 14ASection 37(1)

…required. The amendment of s. 43A by the FA 2002 w.e.f. 1.4.2003 is not clarificatory. Note: The judgement of the ITAT Special Bench in ONGC vs. ITO 83 1TD 151 has been approved by the Hon. Supreme Court in the case of C1T vs Woodward Governor India Pvt. Ltd 312 ITR 254. Respectfully, following the order of the Hon. Supreme Court in 312 ITR 254 the issue is decided in favour of the appellant. The AO is directed to allow the consequential relief.” It is pertinent to note that a detailed explanation was submitted by the assessee before the Assessing Officer in support of allowability of unrealized foreign exchang…

Arjav Diamonds, Mumbai vs. Pr CIT -19, Mumbai

In the result, the appeal of assessee is allowed

ITA 3035/MUM/2017[2012-13]Status: DisposedITAT Mumbai03 Jun 2019AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am

For Appellant: Shri Anuj Kisnadwala, ArFor Respondent: Shri Anadi Varma, DR
Section 143(3)Section 263

…or the assessee referred to pages 7 to 12 of assessee’s paper book, wherein the complete details are given. The learned Counsel for the assessee also relied on the decision of Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC). 6. On the other hand, the learned CIT DR Shri Anadi Verma, relied on the decision of Ballarpur Industries Ltd. vs. CIT (2017) 398 ITR 134 (Bom.), Vaibhavi Trading (P) Ltd vs. DCIT (2018) 89 taxmann.com 132 (Mumbai-Trib.) and Westfalia Separator India (P.) Ltd. Vs. ACIT (2014) 165 TTJ 56 (Delhi-Trib.) for this proposition that the exchange…

At & T Global Network Services (India) Pvt. Ltd., New Delhi vs. JCIT, Special Range-1, New Delhi

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

ITA 7115/DEL/2017[2013-14]Status: DisposedITAT Delhi27 May 2019AY 2013-14

Bench: Shri R.K. Panda & Smt. Beena A. Pillai

For Appellant: Shri Kanchan Kaushal, AdvocateFor Respondent: Shri H.K. Choudhary, CIT, DR
Section 143(3)Section 144CSection 92C

…transaction is disallowed while computing taxable income of the assessee. Referring to the following decisions, the ld. counsel submitted that foreign exchange fluctuation loss is an allowable business expenditure:- i) Woodward Governor India Private Limited, 312 ITR 254 (SC); ii) Tony Electronics Ltd., 375 ITR 431 (Del); and iii) Welspun Zucchi Textiles Ltd., 61 SOT 280 (Mumbai Tribunal). 53. He, however, filed certain additional evidences under Rule 29 of the Income- tax (Appellate Tribunal) Rules, 1963 and requested the Bench to consider the additional evidence which substantiates the veracity of the nature o…

M/S at & T Global Network Services (India) Pvt. Ltd., Gurgaon vs. JCIT, New Delhi

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

ITA 5535/DEL/2016[2012-13]Status: DisposedITAT Delhi27 May 2019AY 2012-13

Bench: Shri R.K. Panda & Smt. Beena A. Pillai

For Appellant: Shri Kanchan Kaushal, AdvocateFor Respondent: Shri H.K. Choudhary, CIT, DR
Section 143(3)Section 144CSection 92C

…transaction is disallowed while computing taxable income of the assessee. Referring to the following decisions, the ld. counsel submitted that foreign exchange fluctuation loss is an allowable business expenditure:- i) Woodward Governor India Private Limited, 312 ITR 254 (SC); ii) Tony Electronics Ltd., 375 ITR 431 (Del); and iii) Welspun Zucchi Textiles Ltd., 61 SOT 280 (Mumbai Tribunal). 53. He, however, filed certain additional evidences under Rule 29 of the Income- tax (Appellate Tribunal) Rules, 1963 and requested the Bench to consider the additional evidence which substantiates the veracity of the nature o…

Diamines and Chemicals Limited, Baroda vs. The Income Tax Officer, Ward-1(1)(2), Baroda

In the result, the appeal of the assessee is allowed

ITA 1414/AHD/2017[2009-10]Status: DisposedITAT Ahmedabad14 May 2019AY 2009-10

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedआयकर अपील सं./Ita No.1414/Ahd/2017 ("नधा"रण वष"/Assessment Year : 2009-10) Diamines & Chemicals Ltd. The Income Tax बनाम/ Plot No.12, Pcc Area Officer Vs. Petrochemicals, Ward-1(1)(2) Baroda-391 346 Baroda "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacd 5356 R .. (अपीलाथ"/Appellant) (""यथ" / Respondent) Shri Sanjay R. Shah, Ar अपीलाथ" ओर से/ Appellant By : ""यथ" क" ओर से/Respondent By: Shri O.P. Sharma, Cit-Dr

For Respondent: Shri O.P. Sharma, CIT-DR
Section 143(3)Section 263

…hat the assessee is entitled for deduction on account of forex loss in relation to such trade advance. In this regard we find support and guidance from the judgment of Hon’ble Supreme Court in the case of CIT Vs. Woodward Governor India (Pvt) Ltd. reported in 312 ITR 254 wherein it was held as under: AS-11 deals with giving of accounting treatment for the effects of changes in foreign exchange rates. In case of the revenue items falling under section 37(1), para 9 of AS-11, which deals with recognition of exchange differences, needs to be considered. Under this para, exchange differences arising on foreign curren…

DCIT, Cir-4(1), Kolkata vs. M/S Mcleod Russel India Ltd., Kolkata

In the result, both the appeals of the Revenue are dismissed

ITA 115/KOL/2016[2009-2010]Status: DisposedITAT Kolkata03 May 2019AY 2009-2010

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 143(3)Section 43B

…accounted by an assessee with reference to exchange rate prevailing on the date of balance sheet is a notional or contingent loss or ascertained loss was considered and decided by the Hon’ble Apex Court in the case of CIT Vs Woodward Governor India Pvt. Ltd. (312 ITR 254). In this judgment the Supreme Court essentially considered the question whether the loss arising from restatement of an expenditure or liability pursuant to exchange fluctuation in respect of unpaid trade receivable or trade payable was allowable in computing business income of an assessee. In the case before the Supreme Court it was the Revenue…