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.

How many judgments cite CIT v. Woodward Governor India Pvt. Ltd.?

968 judgments on BharatTax cite CIT v. Woodward Governor India Pvt. Ltd. (312 ITR 254), spanning 2008 to 2026.

Which sections of the Income Tax Act does CIT v. Woodward Governor India Pvt. Ltd. come up under?

It is most often cited in judgments turning on Section 37(1), Section 143(3), Section 14A, Section 115JB, Section 147, Section 142(1).

CIT v. Woodward Governor India Pvt. Ltd. (312 ITR 254)

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 114/KOL/2016[2008-09]Status: DisposedITAT Kolkata03 May 2019AY 2008-09

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…

Longulf Trading (India) P.Ltd, Mumbai vs. DCIT 8(2), Mumbai

In the result, appeal filed by the assessee for assessment year 2008-2009

ITA 592/MUM/2013[2008-09]Status: DisposedITAT Mumbai01 May 2019AY 2008-09

Bench: Shri G.S. Pannu (Vp) & Shri Ram Lal Negi (Jm) Assessment Year: 2008-09 M/S Longulf Trading (India) The Dcit 8 (2), Private Limited, Mumbai A-Wing, 5Th Floor, Unit 1B, Time Square, Vs. Andheri Kurla Road, Marol, Andheri (East), Mumbai - 400059 Pan: Aaacl1075D (Appellant) (Respondent) Assessee By : Shri Sanjay R. Parikh (Ar) Revenue By : Shri Rajesh Kumar Yadav & Jothi Lakshmi Nayak (Drs) Date Of Hearing: 08/02/2019 Date Of Pronouncement: 01/05/2019 O R D E R Per Ram Lal Negi, Jm This Appeal Has Been Filed By The Assessee Against Order Dated 31/10/2012 Passed By The Ld. Commissioner Of Income Tax (Appeals)-17, Mumbai, For The Assessment Year 2008-09, Whereby The Ld. Cit (A) Has Dismissed The Appeal Filed By The Assessee Against Assessment Order Passed U/S 143 (3) Of The Income Tax Act, 1961 (For Short ‘The Act’) & Further Directed The Ao To Disallow The Net Provision For Loss Of Rs. 51,515/-. 2. Brief Facts Of The Case Are That The Assessee An Exporter Engaged In The Business Of Supply Of Agriculture Commodities Industrial Chemical & Food Additives, Textiles & Engineering Goods Etc., Filed Its Return Of Income For The Assessment Year Under Consideration Declaring The Total Income Of Rs. 5,34,39,100/-. Since, The Case Was Selected For Scrutiny, The Ao Issued Notice U/S 143 (2) & 142 (1) Of The Act. In Response Thereof The Finance Manager Of 2 Assessment Year: 2008-09

For Appellant: Shri Sanjay R. Parikh (AR)For Respondent: Shri Rajesh Kumar Yadav &

Section 143

…24th April, 2001 so also are the MTM losses. 5. “In the facts and circumstances of the case and in law, the learned CIT (A) erred on facts and in law in ignoring the ratio of the decision of Supreme Court in the case of CIT v. Woodward Governor India P. Ltd., 312 ITR 254 (SC), where the Hon’ble Supreme Court has laid down that the additional liability on account fluctuation in foreign currency as on 31st March, of foreign currency loans outstanding on that date was an allowable revenue loss and was not notional or contingent one. 6. The Appellant prays to your honour to consider each of the above grounds without…

The DCIT, Circle-3(1)(1), Ahmedabad vs. M/S. Pushpak Bullions Pvt. Ltd., Ahmedabad

In the result, appeal filed by the Revenue is dismissed

ITA 807/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad25 Apr 2019AY 2010-11

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed)

For Appellant: Shri O.P. Sharma, CIT/DRFor Respondent: Shri A.C. Shah, A.R

Section 10A

…e of mind and to avoid prolonged litigation though there are many case law as which do suggest that M2M loss can be offset and allowed to be adjusted against the profits. The Hon'ble Supreme Court in the case of CIT Vs. Woodward governor India (P.)Ltd. [2009] 312 ITR 254 has held that even a notional loss can be claimeffTry way of a business loss and as a deductible item ir Tcomputmg the income of the assessee for the year, as it is a computation on national basis, it is made dependent on the manner of conduct of the assessee in respect of the earlier assessment period and particularly as to the assessee has been…

Tata Consultancy Services Limited, Mumbai vs. Commissioner of Income Tax - Large Taxpayer'S Unit, Mumbai

In the result, appeal of the assessee in ITA no

ITA 2794/MUM/2018[2011-12]Status: DisposedITAT Mumbai18 Apr 2019AY 2011-12

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.2794/Mum/2018 (नििाारण वर्ा / Assessment Year: 2011-12) Tata Consultancy Services बिाम/ The Commissioner Of Ltd., Income Tax-Large Tax 9Th Floor, Nirmal Building, Payer‟S Unit, V. Nariman Point, 29Th Floor, Centre One Mumbai- 400021 World Trade Centre, Cuffe Parade, Mumbai-400 005 स्थायी ऱेखा सं./ Pan: Aaacr4849R (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: Shri. R. R. Vora & Shri. Nikhil Tiwari Revenue By: Shri. R. Manjunatha Swamy (Cit-Dr) सुनवाई की तारीख /Date Of Hearing : 29.01.2019 घोषणा की तारीख /Date Of Pronouncement : 18.04.2019

For Appellant: Shri. R. R. Vora &For Respondent: Shri. R. Manjunatha Swamy

Section 143(3)Section 234BSection 263Section 263(1)

…It was also submitted that this method of accounting followed by assessee while computing income chargeable to tax has judicial backing. The assessee relied upon decision of Hon‟ble Supreme Court in the case of CIT v. Woodward Governor India (P.) Ltd. (2009) 312 ITR 254(SC). The assessee also placed reliance on the decision of ITAT, Mumbai in the case of Addl. CIT v. C.J. Exporters (2007) 50 CCH 0274(Mum-trib.). The assessee also relied upon the decision of ITAT, Mumbai in the case of Reliance Industries Ltd. v. CIT in ITA no. 7223/Mum/2011, order dated 20.11.2013. The assessee also placed reliance on the decisi…

DCIT, New Delhi vs. M/S. Quippo Oil & Gas Infra Ltd., New Delhi

Appeal of the revenue is dismissed

ITA 5710/DEL/2014[2008-09]Status: DisposedITAT Delhi03 Apr 2019AY 2008-09

Bench: Shri R. K. Panda & Ms Suchitra Kamblequippo Oil & Gas Infra Ltd. Vs The Additional D-2, 5Th Floor, Southern Park, Commissioner Of Income Saket Place Tax, New Delhi Aaacq1278P Range-14 New Delhi (Appellant) (Respondent) Dcit Vs Quippo Oil & Gas Infra Ltd. Circle-14(1) D-2, 5Th Floor, Southern New Delhi Park, Saket Place New Delhi Aaacq1278P (Appellant) (Respondent)

Section 115JSection 143(3)Section 37Section 43B

…n of Rs. 15,94,691/-) to the profit and loss account. The Assessing Officer made an addition amounting to Rs.30,88,634/- by disallowing the same and treating it to be capital in nature by relying upon the decision in case of Woodwards Governer India Pvt. Ltd. 312 ITR 254 (S.C) wherein it was held that foreign exchange loss on capital account will not be allowed as expenditure u/s 37 of the Act. During the previous year, the assessee made a provision on account of leave encashment amounting to Rs. 4,66,803/- and the same amount has been claimed as deduction in computing the taxable income relying on the decision i…

M/S. Quippo Oil & Gas Infrastructure Ltd., Gurgaon vs. Addl.CIT, New Delhi

Appeal of the revenue is dismissed

ITA 5634/DEL/2014[2008-09]Status: DisposedITAT Delhi03 Apr 2019AY 2008-09

Bench: Shri R. K. Panda & Ms Suchitra Kamblequippo Oil & Gas Infra Ltd. Vs The Additional D-2, 5Th Floor, Southern Park, Commissioner Of Income Saket Place Tax, New Delhi Aaacq1278P Range-14 New Delhi (Appellant) (Respondent) Dcit Vs Quippo Oil & Gas Infra Ltd. Circle-14(1) D-2, 5Th Floor, Southern New Delhi Park, Saket Place New Delhi Aaacq1278P (Appellant) (Respondent)

Section 115JSection 143(3)Section 37Section 43B

…n of Rs. 15,94,691/-) to the profit and loss account. The Assessing Officer made an addition amounting to Rs.30,88,634/- by disallowing the same and treating it to be capital in nature by relying upon the decision in case of Woodwards Governer India Pvt. Ltd. 312 ITR 254 (S.C) wherein it was held that foreign exchange loss on capital account will not be allowed as expenditure u/s 37 of the Act. During the previous year, the assessee made a provision on account of leave encashment amounting to Rs. 4,66,803/- and the same amount has been claimed as deduction in computing the taxable income relying on the decision i…

Safal Engineers & Associates, Ahmedabad vs. The ACIT (OSD), Circle-9, Ahmedabad

In the result, assessee’s appeal is allowed

ITA 108/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad01 Apr 2019AY 2008-09

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

For Appellant: Shri P. M. Mehta, A.RFor Respondent: Shri Shiv Sewak, Sr. D.R

Section 143(1)Section 143(2)Section 143(3)

…in [2008] 299 ITR 1 (SC), J.K. Industries Ltd and another-vs-Union of India and others reported in [2008] 297 ITR 176 (SC) and also in the matter passed by the Hon’ble Supreme Court in the matter of CIT- vs-Woodward Governor India Pvt. Ltd. reported in [2009] 312 ITR 254 (SC). The Learned Departmental representative, however, relied upon the order passed by the authorities below. 4. We have heard the respective parties and perused the relevant materials available on record. It appears from the records that during the current assessment year the assessee has carried out development of project called “SAKET-II” al…

The Dy. Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad vs. M/S. Adani Logistics Ltd., Ahmedabad

In the result, appeal of the Revenue is dismissed

ITA 2007/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad29 Mar 2019AY 2012-13

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad)

For Appellant: Shri Lalit P. Jain, Sr. D.RFor Respondent: Shri S.N. Soparkar & Vartik Chokshi, A.R

Section 14ASection 40Section 41(1)

…tted. 14. In this case, loss recognized on account of foreign exchange fluctuation and same is subsisting liability and not merely a contingent or a hypothetical liability. Ld. A.R. cited an order of Hon’ble Apex Court in the case of Woodward Governor (2009) 312 ITR 254 (SC) wherein it is held “ loss suffered by the assessee on account of fluctuation in the rate of foreign exchange as on date of balance sheet as an item of expenditure, same to be allowed in favour of assessee.” 15. In the result, this ground of the revenue is dismissed. 16. Now we come to ground relating to deleting the addition of Rs. 20,77,5…

Motilal Oswal Secrurities Limited, Mumbai vs. Assistant Commissioner of Income Tax, Central Circle 3(3), Mumbai

In the result, the appeal filed by the revenue is partly allowed, for

ITA 6662/MUM/2017[2013-14]Status: HeardITAT Mumbai27 Mar 2019AY 2013-14

Bench: Shri G Manjunatha () & Shri Ravish Sood () M/S Motilal Oswal Securities Vs Acit, Cent.Circ.3(3), Mumbai Ltd, Motilal Oswal Tower, Gokhale Road North, Prabhadevi, Mumbai 400 025 Pan : Aaacd3654Q Appellant Respondednt Dcit, Cent.Circ.3(3), Mumbai Vs M/S Motilal Oswal Securities Ltd, Motilal Oswal Tower, Gokhale Road North, Prabhadevi, Mumbai 400 025 Appellant Respondednt

Section 143(3)Section 14ASection 73

…deleted additions made by the AO towards excess depreciation on VSAT, addition made by the AO towards vanda loss, addition made by the AO towards mark to market loss by relying upon decision of Supreme Court in the case of CIT vs Woodward Governor India Ltd 312 ITR 254 (SC). But, allowed partial relief in respect of disallowance of expenditure incurred in relation to exempt income determined by the AO by applying the principles provided u/r 8D of I.T. Rules, 1962. Aggrieved by the order of Ld.CIT(A), the assessee as well as the revenue are in appeal before us. 5. The first issue that came up for our conside…

Terex India Pvt. Ltd., Bangalore vs. DCIT, New Delhi

The appeal of the Revenue is dismissed and that of the assessee is allowed for statistical

ITA 6783/DEL/2015[2011-12]Status: DisposedITAT Delhi26 Mar 2019AY 2011-12

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastavaassessment Year: 2011-12 Dcit, Terex India Pvt. Ltd., Circle-25(1), 5Th Floor, West Wing, E-City, Tower-2, C.R. Building, #94/2 & 95/2, Electronic City Phase-I, Vs New Delhi. Hosur Main Road, Bangalore-560100 Appellant Respondent Assessment Year: 2011-12 Terex India Pvt. Ltd., Dcit, 5Th Floor, West Wing, E-City, Tower-2, Circle-25(1), #94/2 & 95/2, Electronic City Phase-I, C.R. Vs Hosur Main Road, Building, Bangalore-560100 New Delhi. Appellant Respondent

For Appellant: Shri Ved Jain, AdvFor Respondent: Shri H.K. Choudary, C.I.T. DR

…ble in view of the provisions of section 43A of the Act. The Ld. DRP directed deletion of the addition by holding that the same is allowable in view of the judgement of the Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India Private Limited 312 ITR 254 (SC). 3.6.1 It was submitted by the Ld. CIT DR that the Ld. DRP has gone wrong in allowing this deduction ignoring the fact that this loss has occurred on account of fluctuation in Foreign Exchange in respect of loan taken by the assessee for the 52 Assessment year 2011-12 purpose of capital assets and hence, the same cannot be allowed as r…

DCIT, New Delhi vs. M/S. Terex India Pvt. Ltd., Bangalore

The appeal of the Revenue is dismissed and that of the assessee is allowed for statistical

ITA 6775/DEL/2015[2011-12]Status: DisposedITAT Delhi26 Mar 2019AY 2011-12

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastavaassessment Year: 2011-12 Dcit, Terex India Pvt. Ltd., Circle-25(1), 5Th Floor, West Wing, E-City, Tower-2, C.R. Building, #94/2 & 95/2, Electronic City Phase-I, Vs New Delhi. Hosur Main Road, Bangalore-560100 Appellant Respondent Assessment Year: 2011-12 Terex India Pvt. Ltd., Dcit, 5Th Floor, West Wing, E-City, Tower-2, Circle-25(1), #94/2 & 95/2, Electronic City Phase-I, C.R. Vs Hosur Main Road, Building, Bangalore-560100 New Delhi. Appellant Respondent

For Appellant: Shri Ved Jain, AdvFor Respondent: Shri H.K. Choudary, C.I.T. DR

…ble in view of the provisions of section 43A of the Act. The Ld. DRP directed deletion of the addition by holding that the same is allowable in view of the judgement of the Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India Private Limited 312 ITR 254 (SC). 3.6.1 It was submitted by the Ld. CIT DR that the Ld. DRP has gone wrong in allowing this deduction ignoring the fact that this loss has occurred on account of fluctuation in Foreign Exchange in respect of loan taken by the assessee for the 52 Assessment year 2011-12 purpose of capital assets and hence, the same cannot be allowed as r…

The Dy. CIT, Circle-1(1)(1), Ahmedabad vs. M/S. Ahmedabad Strips Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 3454/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad28 Feb 2019AY 2012-13

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No.3454/Ahd/2016 "नधा"रण वष"/Asstt. Year: 2012-2013 D.C.I.T, Ahmedabad Strips Pvt. Ltd., Circle-1(1)(1), 604, Sarap Complex, 6Th Floor, Vs. Ahmedabad Navjivan Press Road, B/H. Gujarat Vidhyapith, Off Ashram Road, Ahmedabad-380014. Pan: Aabca8222A

For Appellant: Shri Bhavesh Shah, A.R

Section 36(1)(iii)Section 40A(2)(b)

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’D’’BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And MS MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./ITA No.3454/AHD/2016 "नधा"रण वष"/Asstt. Year: 2012-2013 D.C.I.T, Ahmedabad Strips Pvt. Ltd., Circle-1(1)(1), 604, Sarap Complex, 6th Floor, Vs. Ahmedabad Navjivan Press Road, B/h. Gujarat Vidhyapith, Off Ashram Road, Ahmedabad-380014. PAN: AABCA8222A (Applicant) (Respondent) : Revenue by Shri Vinod Tanwani, Sr. D.R Assessee by : Shri Bhavesh Shah, A.R सुनवाई क" तार"ख/Date of Hearing : 08/02/2019 घोषणा क" तार"ख /Date of Pro…

DCIT, New Delhi vs. M/S. Menarini Raunaq Pharma Ltd., New Delhi

ITA 2944/DEL/2014[2005-06]Status: DisposedITAT Delhi28 Feb 2019AY 2005-06

Bench: Shri Kuldip Singh & Shri M.L.Meena

For Appellant: NoneFor Respondent: Ms. Rinku Singh, Sr. DR

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E’ : NEW DELHI) BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI M.L.MEENA, ACCOUNTANT MEMBER ITA No.2944/Del./2014, A.Y. 2005-06 D.C.I.T Vs. Menarini Raunaq Pharma Ltd. Circle -6(1), 412-417, Ambadeep, 14, Kasturba Gandhi Marg New Delhi New Delhi PAN : AAACM4198C (APPELLANT) (RESPONDENT) ASSESSEE BY : None REVENUE BY : Ms. Rinku Singh, Sr. DR Date of Hearing : 06.02.2019 Date of Order : 28.02.2019 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : The appellant Dy. Commissioner of Income Tax, New Delhi (hereinafter referred to as 'the revenue') by fili…

ACIT, Circle- 31(1), New Delhi vs. Global Influence, New Delhi

ITA 713/DEL/2018[2014-15]Status: DisposedITAT Delhi27 Feb 2019AY 2014-15

Bench: Shri Sh. N.S. Saini & Shri Shri Kuldip Singh

For Appellant: Sh.A.K.Batra, Adv. FCAFor Respondent: Sh. Amit Kutoch, Sr. DR

Section 36(1)(iii)Section 37Section 37(1)

…unt of disallowance of loss arising due to restatement of Forex advance. 2) Whether on the facts and in the circumstances of the case the Ld. CIT(A)-11, New Delhi was justified in relying upon the order of CIT vs. Woodward Governor India Pvt. Ltd. Reported at 312 ITR 254? 3) Whether on the facts and in the circumstances of the case the Ld. CIT(A)-11, New Delhi was justified in deleting the addition of Rs. 28,17,674/- in respect of disallowance of interest u/s 36(1)(iii) of the Act. 4) The Department craves leave to add, alter or amend the grounds of appeal at a later stage.” 2. Briefly stated that facts necessar…