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.

DCIT, Chennai vs. Rane Brake Lining Ltd., Chennai

In the result the Revenue’s appeal in ITA Nos

ITA 1528/CHNY/2014[2010-2011]Status: DisposedITAT Chennai15 Feb 2018AY 2010-2011

Bench: Shri N.R.S. Ganesan & Shri A.Mohan Alankamony

For Respondent: Shri R. Vijayaraghavan, Advocate
Section 143(3)Section 14ASection 250(6)Section 40Section 9(1)(vii)

…On appeal the Ld.CIT(A) granted relief to the assessee by observing as follows:- “I have carefully considered the facts of the case and the submissions of the ld.AR. As per the decision of Hon'ble Supreme Court in the case of Woodward Governors India P Ltd, 312 ITR 254 (2009) (SC) and several other cases, the foreign exchange fluctuation loss was allowed as business loss. It was also recognized the forward contracts as hedging tools to protect the interest of the business from the volatility of the foreign currency. The precondition for allowing such losses are the followance of guidelines of RBI and FEMA and t…

DCIT, Chennai vs. Rane Brake Lining Ltd., Chennai

In the result the Revenue’s appeal in ITA Nos

ITA 1527/CHNY/2014[2009-2010]Status: DisposedITAT Chennai15 Feb 2018AY 2009-2010

Bench: Shri N.R.S. Ganesan & Shri A.Mohan Alankamony

For Respondent: Shri R. Vijayaraghavan, Advocate
Section 143(3)Section 14ASection 250(6)Section 40Section 9(1)(vii)

…On appeal the Ld.CIT(A) granted relief to the assessee by observing as follows:- “I have carefully considered the facts of the case and the submissions of the ld.AR. As per the decision of Hon'ble Supreme Court in the case of Woodward Governors India P Ltd, 312 ITR 254 (2009) (SC) and several other cases, the foreign exchange fluctuation loss was allowed as business loss. It was also recognized the forward contracts as hedging tools to protect the interest of the business from the volatility of the foreign currency. The precondition for allowing such losses are the followance of guidelines of RBI and FEMA and t…

DCIT, Circle-12(1), Kolkata vs. M/S Hindusthan Gum & Chemicals Ltd., Kolkata

In the result, the appeal of the assessee is partly allowed for statistical purposes and the appeal of the revenue is dismissed

ITA 1601/KOL/2016[2010-2011]Status: DisposedITAT Kolkata14 Feb 2018AY 2010-2011

Bench: Hon’Ble Shri M.Balaganesh, Am & Shri S.S.Viswanethra Ravi, Jm] I.T.A No. 1410/Kol/2016 Assessment Year : 2010-11 Hindustan Gum & Chemicals Ltd. -Vs- Dcit, Circle-12(1), Kolkata [Pan: Aaach 7214 E] (Appellant) (Respondent) I.T.A No. 1601 /Kol/2016 Assessment Year : 2010-11 Dcit, Circle-12(1), Kolkata -Vs- Hindustan Gum & Chemicals Ltd. [Pan: Aaach 7214 E] (Appellant) (Respondent) For The Appellant : Shri J.P. Khaitan, Sr. Advocate Shri Vinod Sharma, Ca For The Respondent : Shri Sallong Yaden, Addl. Cit

For Appellant: Shri J.P. Khaitan, Sr. AdvocateFor Respondent: Shri Sallong Yaden, Addl. CIT
Section 10BSection 143(3)Section 14A

…come as returned by the assessee. Accordingly, the assessee preferred an appeal on this ground before the Ld. CIT(A). The Ld. CIT(A) by placing reliance on the decision of Hon’ble Apex Court in the case of CIT vs. Woodward Governor India Pvt. Ltd. reported in 312 ITR 154 (SC) and ONGC vs. CIT reported in 323 ITR 180 (SC) granted relief to the assessee by observing as under: “8.2. I have carefully considered the submissions of the AR and have perused the details of such loss. The issue with regard to allowability of mark-to-market loss arising out of re-statement of foreign exchange liabilities has been decided by…

Hindustan Gum & Chemicals Ltd., Kolkata vs. The DCIT, Cir-12(1), Kolkata

In the result, the appeal of the assessee is partly allowed for statistical purposes and the appeal of the revenue is dismissed

ITA 1410/KOL/2016[2010-11]Status: DisposedITAT Kolkata14 Feb 2018AY 2010-11

Bench: Hon’Ble Shri M.Balaganesh, Am & Shri S.S.Viswanethra Ravi, Jm] I.T.A No. 1410/Kol/2016 Assessment Year : 2010-11 Hindustan Gum & Chemicals Ltd. -Vs- Dcit, Circle-12(1), Kolkata [Pan: Aaach 7214 E] (Appellant) (Respondent) I.T.A No. 1601 /Kol/2016 Assessment Year : 2010-11 Dcit, Circle-12(1), Kolkata -Vs- Hindustan Gum & Chemicals Ltd. [Pan: Aaach 7214 E] (Appellant) (Respondent) For The Appellant : Shri J.P. Khaitan, Sr. Advocate Shri Vinod Sharma, Ca For The Respondent : Shri Sallong Yaden, Addl. Cit

For Appellant: Shri J.P. Khaitan, Sr. AdvocateFor Respondent: Shri Sallong Yaden, Addl. CIT
Section 10BSection 143(3)Section 14A

…come as returned by the assessee. Accordingly, the assessee preferred an appeal on this ground before the Ld. CIT(A). The Ld. CIT(A) by placing reliance on the decision of Hon’ble Apex Court in the case of CIT vs. Woodward Governor India Pvt. Ltd. reported in 312 ITR 154 (SC) and ONGC vs. CIT reported in 323 ITR 180 (SC) granted relief to the assessee by observing as under: “8.2. I have carefully considered the submissions of the AR and have perused the details of such loss. The issue with regard to allowability of mark-to-market loss arising out of re-statement of foreign exchange liabilities has been decided by…

Dbs Bank Ltd, Mumbai vs. ADIT (It) 1(2), Mumbai

In the result, the appeal of the assessee is treated as partly allowed for statistical purposes

ITA 9067/MUM/2010[2006-07]Status: DisposedITAT Mumbai12 Feb 2018AY 2006-07

Bench: Shri B.R. Baskaran (Am) & Shri Ravish Sood(Jm)

Section 143(3)Section 144C(13)Section 40

…esentative and perused the record. We noticed that the Tribunal has allowed an identical claim made by the assessee in A.Y. 2003-04 & 2005-06 by following the decision rendered by Hon'ble Supreme Court in the case of CIT Vs. Woodward Governor India Pvt. Ltd. (312 ITR 224). For the sake of convenience we extract below the order passed for A.Y. 2005-06 :- 15. We have considered the rival contention of the parties. We have seen that in Assessment Year, the assessing officer not allowed the similar relief to the assessee; however on appeal before Commissioner (Appeals) the relief was granted. Aggrieved by the order…

Leo Fasteners, Pondicherry vs. DCIT, Pondicherry Circle, Pondicherry

In the result, both the appeals filed by the assessee stand allowed

ITA 2165/CHNY/2017[2009-10]Status: DisposedITAT Chennai08 Feb 2018AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2164 & 2165/Mds/2017 "नधा"रण वष" / Assessment Years : 2013-14 & 2009-10 M/S Leo Fasteners, The Deputy Commissioner Of A-27/A, Industrial Estate, V. Income Tax, Thattanchavady, Pondicherry Circle, Pondicherry – 605 009. Pondicherry. Pan : Aabfl 0652 J (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Smt. J. Sree Vidya, AdvocateFor Respondent: Smt. Ruby George, CIT
Section 37(1)

…sessing Officer. Placing reliance on the order of this Tribunal in I.T.A. No.508/Mds/2017 dated 31.07.2017, the Ld.counsel submitted that the order of the CIT(Appeals) for assessment year 2012-13 was reversed by this Tribunal by placing reliance on the (2009) 312 ITR 254. In view of the above, according to the Ld. counsel, the loss on foreign exchange fluctuation has to be allowed as revenue expenditure under Section 37(1) of the Income-tax Act, 1961 (in short 'the Act'). 4. We heard Smt. Ruby George, the Ld. Departmental Representative also. As rightly submitted by the Ld.counsel for the assessee, the issue o…

Leo Fasteners, Pondicherry vs. DCIT, Pondicherry Circle, Pondicherry

In the result, both the appeals filed by the assessee stand allowed

ITA 2164/CHNY/2017[2013-14]Status: DisposedITAT Chennai08 Feb 2018AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2164 & 2165/Mds/2017 "नधा"रण वष" / Assessment Years : 2013-14 & 2009-10 M/S Leo Fasteners, The Deputy Commissioner Of A-27/A, Industrial Estate, V. Income Tax, Thattanchavady, Pondicherry Circle, Pondicherry – 605 009. Pondicherry. Pan : Aabfl 0652 J (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Smt. J. Sree Vidya, AdvocateFor Respondent: Smt. Ruby George, CIT
Section 37(1)

…sessing Officer. Placing reliance on the order of this Tribunal in I.T.A. No.508/Mds/2017 dated 31.07.2017, the Ld.counsel submitted that the order of the CIT(Appeals) for assessment year 2012-13 was reversed by this Tribunal by placing reliance on the (2009) 312 ITR 254. In view of the above, according to the Ld. counsel, the loss on foreign exchange fluctuation has to be allowed as revenue expenditure under Section 37(1) of the Income-tax Act, 1961 (in short 'the Act'). 4. We heard Smt. Ruby George, the Ld. Departmental Representative also. As rightly submitted by the Ld.counsel for the assessee, the issue o…

Kallakuruchi Co-Op Sugar Mills, Villupuram vs. DCIT Villuupram Circle, Villupuram

In the result, the appeal of the assessee is dismissed

ITA 2236/CHNY/2017[2013-14]Status: DisposedITAT Chennai31 Jan 2018AY 2013-14

Bench: Shri Abraham P.George & Shri George Mathanआयकर अपील सं./Ita No.2236/Mds/2017 %नधा"रण वष" /Assessment Year: 2013-14

For Appellant: Mr.S.Venugopalan, CAFor Respondent: Mrs.S.Vijayaprabha, JCIT

…determining the value of closing stock. The ld. AR relied on the following judgments for the proposition that consistency to be followed in income-tax proceedings: 1. United Commercial Bank v. CIT (240 ITR 355)(SC) 2. CIT v. Woodward Governor India P. Ltd. (312 ITR 254)(SC) 3. Merck Ltd. v. DCIT (2 ITR (Trib)-OL 629 (Mumbai) 4. CIT v. Dhampur Sugar Mills Ltd. (360 ITR 82) (Allahabad) In our opinion, each assessment year is an independent assessment of unit and the wrong method of accounting followed by the assessee cannot be appropriated. In our opinion, the above components are not income from the business of…

Everest Industires Ltd, New Delhi vs. JCIT RG 1, Mumbai

In the result, the appeal of the revenue is treated as allowed and the appeal of the assessee is treated as partly allowed

ITA 3804/MUM/2015[2009-10]Status: DisposedITAT Mumbai31 Jan 2018AY 2009-10

Bench: S/Shri B.R. Baskaran (Am) & Ramlal Negi (Jm)

…ew that the foreign exchange valuation loss is a notional loss and not actual business loss. The view so taken by Ld CIT(A) is apparently not in accordance with the decision rendered by Hon’ble Supreme Court in the case of Woodward Governor India P Ltd (2009)(312 ITR 254)(SC), wherein the Hon’ble Supreme Court has expressed the view that the valuation is a part of accounting system and that the loss suffered by the assessee on account of exchange difference (on revenue account) as on the date of balance sheet is an item of expenditure u/s 37(1) of the Act. 50. It is also pertinent to extract below the observatio…

Abacus Distribution Systems (India) P.Ltd, Mumbai vs. DCIT 6(1), Mumbai

ITA 1766/MUM/2015[2010-11]Status: DisposedITAT Mumbai10 Jan 2018AY 2010-11
For Appellant: Shri Nitesh Joshi-ARFor Respondent: Shri Jayantkumar,Saurabh Deshpande-DR.s
Section 115JSection 143(3)Section 154Section 254(1)Section 92C(3)(c)

…the liability were reflected as a FE liability in the annual accounts, that the approval was given by the RBI for receiving the ECB loan, that the loan was taken for working capital requirements.He relied upon the cases of Woodward Governer India Private Ltd.(312 ITR 254) Oil and Natural Gas Corporation Ltd. (322 ITR 180). The DR left the issue to the discretion of the Bench. 5.2.We have heard the rival submissions and perused the material before us.We find that the AO on one hand would tax gain on FE earnings but would not allow loss arising on FE loss.In our opinion,the stand taken by the AO is not justified in…

Abacus Distribution Systems (India) P.Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

ITA 1402/MUM/2014[2009-10]Status: DisposedITAT Mumbai05 Jan 2018AY 2009-10

Bench: S/Shri Rajendra & Ram Lal Negiआयकर आयकर अपील अपील संसंसंसं/.Ita Nos.1402/Mum/2014,िनधा"रण िनधा"रण वष" वष" / Assessment Year: 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" M/S.Abacus Distribution Systems (India) The Deputy Commissioner Of Income-Tax, Pvt. Ltd, Circle- 3(1),Mumbai. Urmi Estate, 14Th Floor, 95, Vs. Ganpatrao Kadam Marg, Lower Parel (West),Mumbai-400 013. Pan: Aaaca4836H (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By : Shri Jayantkumar,Saurabh Deshpande-Dr.S Assessee By : Shri Nitesh Joshi-Ar सुनवाई क" तारीख / Date Of Hearing: 17/10/2017 घोषणा क" तारीख / Date Of Pronouncement: 05/01/2018 आयकर अिधिनयम अिधिनयम, 1961 क" धारा ( 1 ) 254 केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर क" धारा आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act).

For Appellant: Shri Nitesh Joshi-ARFor Respondent: Shri Jayantkumar,Saurabh Deshpande-DR.s
Section 143(3)Section 254(1)

…the liability were reflected as a FE liability in the annual accounts, that the approval was given by the RBI for receiving the ECB loan, that the loan was taken for working capital requirements.He relied upon the cases of Woodward Governer India Private Ltd.(312 ITR 254) Oil and Natural Gas Corporation Ltd. (322 ITR 180). The DR left the issue to the discretion of the Bench. 5.2.We have heard the rival submissions and perused the material before us.We find that the AO on one hand would tax gain on FE earnings but would not allow loss arising on FE loss.In our 10 1402/M/13(09-10) M/s.Abacus Distribution Systems…

DCIT Cen Cir 10, Mumbai vs. Rustomjee Evershine Joint Venture P.Ltd, Thane

ITA 5613/MUM/2014[2010-11]Status: DisposedITAT Mumbai08 Dec 2017AY 2010-11

Bench: Shri Joginder Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No. 5613/Mum/2014 (िनधा"रण वष" / Assessment Year: 2010-11) Deputy Commissioner Of Income Rustomjee Evershine Joint Tax, Central Circle 10 Venture Private Limited बनाम/ Room No.802,8Th Floor Global City, Narangi Bypass Road Old Cgo Annexe, M.K.Road Close To Viva College Vs. Mumbai – 400 020 Virar(West),Thane Thane-401 303 (अपीलाथ" /Appellant) (""थ" / Respondent) : & Cross Objection No.111/Mum/2017 (िनधा"रण वष" / Assessment Year: 2010-11) Rustomjee Evershine Joint Deputy Commissioner Of Venture Private Limited Income Tax, Central Circle 10 बनाम/ Room No.802,8Th Floor Global City, Narangi Bypass Road Close To Viva College Old Cgo Annexe, M.K.Road Vs. Virar(West),Thane Mumbai – 400 020 Thane-401 303 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaaar-7687-M (अपीलाथ" /Appellant) (""थ" / Respondent) :

For Appellant: Naresh Kumar, Ld.ARFor Respondent: M.Daya Sagar, Ld. DR (CIT)
Section 132(1)Section 143(3)Section 153ASection 153C

…ITA No.5613/M/2014 & CO 111/M/2017 Rustomjee Evershine Joint Venture Private Limited Assessment Year 2010-11 आयकर अपीलीय अिधकरण “डी” "ायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI जोिग"र िसंह ,"ाियक सद" एवं "ी मनोज कुमार अ"वाल, लेखा सद" के सम" । BEFORE SHRI JOGINDER SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./I.T.A. No. 5613/Mum/2014 (िनधा"रण वष" / Assessment Year: 2010-11) Deputy Commissioner Of Income Rustomjee Evershine Joint Tax, Central Circle 10 Venture Private Limited बनाम/ Room No.802,8th Floor Global City, Narangi Bypass Road Old CGO Annexe, M.K.Road Close to VIVA…

Commissioner of Income Tax Del vs. M/S Maruti Udyog Ltd

ITA/250/2005HC Delhi07 Dec 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 14ASection 43B

…n calculated by including the said amount in the AY 1999-2000? The ITAT has answered the question in favour of the Assessee. In view of the decisions in Sharanpur Electric Supply Ltd. (1992) 194 ITR 294 (SC); CIT v. Woodward Governor India (P) Ltd. [2009] 312 ITR 254 (SC); CIT v. Funskool (India) Ltd. (2007) 294 ITR 642 (Mad.); CIT v. Noida Medicare Centre Ltd (2015) 378 ITR ITA No.250/2005 Page 5 of 6 65(Del) and DGIT v. Official Liquidator (2008) 305 ITR 418(Mad.), question (v) is answered in the affirmative i.e. in favour of the Assessee and against the Revenue. 10. As regards Questions (v…

DCIT, Cir-2(1), Kolkata vs. M/S Cae India Pvt. Ltd., Bangalore

In the result, appeal of Revenue stands dismissed

ITA 379/KOL/2015[2009-2010]Status: DisposedITAT Kolkata06 Dec 2017AY 2009-2010

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year:2009-10

Section 143(3)

…he basis of Speculative transactions which is not the case here. In addition, considering the decision of the jurisdictional High Court in CIT vs. Martin & Harris (P) Ltd. 154 ITR 460 as well as that of Supreme Court in CIT Vs. Woodward Governor India (P) Ltd 312 ITR 254,the trading liability would vary at the end of the financial year due to exchange rate fluctuations at the end of the accounting year i.e.as on 31st March of the financial year has to be accounted for. In the Appellant’s case, it is seen that the exchange rate fluctuations in respect to transactions relating to the trading activities/creditors of…

Resource Realty P.Ltd, Mumbai vs. DCIT Cir 8(3), Mumbai

The appeal of the assessee is dismissed

ITA 5782/MUM/2014[2011-12]Status: DisposedITAT Mumbai06 Dec 2017AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Resource Realty P. Ltd Dcit- Circle 8(3), 4Th Floor, Hdil Tower, बिधम/ R. No. 204, Aaykar Bhawan Anant Kanekar Marg, M.K Road, Vs. Bandra (E), Mumbai – 400 020 Mumbaii-400 703 स्थामी रेखा सं./ जीआइआय सं./ Pan No. Aaecr0433R (अऩीराथी /Appellant) (प्रत्मथी / Respondent) :

For Appellant: Shri Virag Shah, A.RFor Respondent: Shri Saurabh K. Rai, D.R
Section 143(2)Section 143(3)Section 57

…ITA No. 5782/Mum/2014 – A.Y. 2011-12 1 Resource Realty Pvt. Ltd. Vs. Dy. CIT IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI R.C.SHARMA, AM AND SHRI RAVISH SOOD, JM Resource Realty P. Ltd DCIT- Circle 8(3), 4th Floor, HDIL Tower, बिधम/ R. No. 204, Aaykar Bhawan Anant Kanekar Marg, M.K Road, Vs. Bandra (E), Mumbai – 400 020 Mumbaii-400 703 स्थामी रेखा सं./ जीआइआय सं./ PAN No. AAECR0433R (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : अऩीराथी की ओय से / Appellant by : Shri Virag Shah, A.R प्रत्मथी की ओय से/Respondent by : Shri Saurabh K. Rai, D.R सुनवाई की तायीख / : 08.09.2017 Date of Hearin…

M/S. Voith Paper Fabrics India Ltd., Aberdeen vs. ACIT, Faridabad

In the result, the appeal of the assessee is allowed in part

ITA 1924/DEL/2014[2008-09]Status: DisposedITAT Delhi14 Nov 2017AY 2008-09

Bench: Shri G.D. Agrawal, Hon’Ble & Shri K. Narsimha Chary

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘H’ NEW DELHI BEFORE SHRI G.D. AGRAWAL, HON’BLE PRESIDENT & SHRI K. NARSIMHA CHARY, JUDICIAL MEMBER ITA No.-1924/Del/2014 (Assessment Year: 2008-09) vs Voith Paper Fabrics India Ltd. ACIT 113-114A, Sector-24, Circle II Aberdeen Faridabad AABCP0441Q Assessee by Sh. Santosh K. Agrawal, CA Revenue by Sh. Amit Jain, Sr. DR Date of Hearing 13.11.2017 Date of Pronouncement 14.11.2017 ORDER PER SHRI K.N. CHARY, J.M. Aggrieved by the order dated 16.01.2016 in appeal no. 291/2010-11 relevant to the assessment year 2008-09 passed by the Ld. Commissioner of Income…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is allowed in part for statistical purposes

ITA 6021/DEL/2012[2008-09]Status: DisposedITAT Delhi09 Nov 2017AY 2008-09

Bench: Shri N.K. Saini & Shri K.N. Charry

Section 143(3)Section 144CSection 144C(5)Section 14ASection 35DSection 43BSection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘I’ NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER & SHRI K.N. CHARRY, JUDICIAL MEMBER ITA No.-6021/Del/2012 (Assessment Year: 2008-09) Maruti Suzuki India Ltd. vs Addl. CIT Plot No. 1, Nelson Mandela Road, Range-6, Vasant Kunj, New Delhi. C.R. Building, PAN-AAACM0829Q New Delhi. (APPELLANT) (RESPONDENT) Assessee by Sh. Ajay Vohra Revenue by Sh. Aprender Kumar Date of Hearing 21.08.2017 Date of Pronouncement 09.11.2017 ORDER PER SHRI K.N. CHARY, JUDICIAL MEMBER This is an appeal challenging the order dated 29.10.2012 passed by the Assessing Officer u/…

Teva Api India Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal is allowed for statistical purposes

ITA 6706/DEL/2016[2012-13]Status: DisposedITAT Delhi03 Nov 2017AY 2012-13

Bench: Shri R.S. Syal & Shri K. Narasimha Charyassessment Year: 2012-13

For Appellant: Shri Himanshu Sinha &For Respondent: Mrs Y.S. Kakkar, CIT, DR
Section 143(3)Section 144C

…5 SA No.601/Del/2016 taken as an item of operating nature and in other cases it should be considered as non-operating. This view of the DRP accords with the ratio of the judgment of the Hon’ble Supreme Court in CIT VS. Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC). The ld. counsel for the assessee submitted that the exchange loss of Rs.112.40 million pertains to loan taken by the assessee from Teva Pharmaceuticals Finance, Netherlands B.V., its holding company. Referring to the balance sheet of the assessee for the year under consideration, the ld. AR submitted that the assessee effected long-term…

The Madras Silks India Pvt. Ltd., Tiruppur vs. DCIT, Tiruppur

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

ITA 180/CHNY/2017[2012-13]Status: DisposedITAT Chennai31 Oct 2017AY 2012-13

Bench: Shri A. Mohan Alankamony & Shri Duvvuru Rl Reddyआयकर अपील सं./I T.A. No. 180/Mds/2017 "नधा"रण वष"/Assessment Year:2012-13 The Madras Silks India Pvt. Ltd., The Deputy Commissioner Of No. 68-A, College Road, Vs. Income Tax, Tirupur 641 602. Circle 1, Tirupur. [Pan: Aacct4954H] (Appellant) (Respondent) अपीलाथ" क" ओर से / Appellant By : Shri S. Swaminathan, C.A. ""यथ" क" ओर से/Respondent By : Shri Asish Tripathi, Jcit सुनवाई क" तार"ख/ Date Of Hearing : 30.08.2017 घोषणा क" तार"ख /Date Of Pronouncement : 31.10.2017 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 3, Coimbatore Dated 27.10.2016 Relevant To The Assessment Year 2012-13. The Only Effective Ground Raised In The Appeal Of The Assessee Is That The Ld. Cit(A) Has Erred In Confirming The Addition Of Foreign Exchange Fluctuation Loss On Principal Repayment Of Wind Mill Loan.

For Appellant: Shri S. Swaminathan, C.AFor Respondent: Shri Asish Tripathi, JCIT
Section 143(1)Section 143(2)Section 37(1)Section 43A

…tten submissions of the assessee. The assessee has debited the foreign exchange fluctuation loss of ₹.86,40,372/- and claimed the same as deduction under section 37(1) of the Act by relying on the decision in the case of CIT v. Woodward Governor India P. Ltd. 312 ITR 254 (SC). The assessee objected application of provisions of section 43A of the Act. The Assessing Officer, while completing the assessment, has treated the foreign currency fluctuation loss on account of repayment as cost of the asset by following the decision of the Hon’ble Supreme Court in the case of Sutlej Mills P. Ltd. v. CIT 116 ITR 1 and in p…

M/S.Webtek Software Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

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

ITA 2261/BANG/2016[2013-14]Status: DisposedITAT Bangalore27 Oct 2017AY 2013-14
For Appellant: Shri Rohit Jain, C. AFor Respondent: Shri M. K. Biju, JCIT (DR)
Section 115Section 115JSection 250

…unt lying in EEFC account was blocked for any reason and therefore, in the facts of the present case, this judgment is not applicable. In the present case, the judgment of Hon’ble apex court rendered in the case of CIT vs. woodward Governor India Pvt. Ltd., 312 ITR 254 is applicable. As per this judgment, the bank balance in foreign currency has to valued in Indian Currency on the Balance Sheet Date and accounting treatment is to be given to the difference and the same is revenue item except liability to acquire fixed assets for which the effect will go to increase or decrease the value of the relevant asset…