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 371,939 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.

Shree Ramkrishna Export, Mumbai vs. Jtcit 16(3), Mumbai

In the result, the appeal filed by the assessee in ITA No

ITA 7311/MUM/2012[2009-10]Status: DisposedITAT Mumbai07 Nov 2016AY 2009-10

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 7311/Mum/2012 ("नधा"रण वष" / Assessment Year : 2009-10) M/S Shree Ramkrishna The Jt. Commissioner Of बनाम/ Exports Pvt. Ltd., Income Tax – 16(3), V. (Earlier Shree Ramkrishna Matru Mandir, Exports) Mumbai – 400 007. Ee 6011, Bharat Diamond Bourse, G Block, Bandra-Kurla Complex, Bandra East, Mumbai – 400 005. "थायी लेखा सं./Pan : Earlier Pan Aaafs6758D (Now Pan Aarcs2442Q) .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Shri Manjunatha Swamy
Section 143(2)Section 143(3)

…ar end. The assessee submitted that the assessee is following this accounting practice consistently . The assessee has relied upon the following decisions : (i) DCIT vs. Bank of Bahrain & Kuwait 132 TTJ 505 (Mumbai)(SB) (ii) Woodward Governor India (P) Ltd. 312 ITR 254(SC) (iii) ONGC 322 ITR 180(SC) (iv) Badridas Gauridu (P) Ltd. 261 ITR 256 (v) Soorajmul Nagarmull 129 ITR 169 (Cal.) The A.O. considered the submissions of the assessee and observed that the assessee has entered into forward foreign exchange contracts , which are outstanding as at the end of the previous year which has been valued by the assesse…

ITO RG 8(1)(3), Mumbai vs. Euro Ceramics Ltd, Mumbai

In the result, the appeal filed by the Revenue in ITA No

ITA 3623/MUM/2013[2008-09]Status: DisposedITAT Mumbai04 Nov 2016AY 2008-09

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 3623/Mum/2013 ("नधा"रण वष" / Assessment Year : 2008-09) Income Tax Officer – Range M/S Euro Ceramics Ltd., बनाम/ 8(1)(3), Cts No. 1406/A, V. Room No. 260A, 2 Nd Floor, Euro House, Aayakar Bhavan, Chincholi Bunder Road, M.K. Road, Off Link Road, Mumbai -400020. Behind Inorbit Mall, Malad (W), Mumbai – 400 064. "थायी लेखा सं./Pan : Aaace9821G (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: Shri Beharilal
Section 143(3)Section 37(1)Section 43A

…आयकर अपील"य अ"धकरण “E” "यायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 3623/Mum/2013 ("नधा"रण वष" / Assessment Year : 2008-09) Income Tax Officer – Range M/s Euro Ceramics Ltd., बनाम/ 8(1)(3), CTS No. 1406/A, v. Room No. 260A, 2 nd floor, Euro House, Aayakar Bhavan, Chincholi Bunder Road, M.K. Road, Off Link Road, Mumbai -400020. Behind Inorbit Mall, Malad (W), Mumbai – 400 064. "थायी लेखा सं./PAN : AAACE9821G (अपीलाथ" /Appellant) .. (""यथ" / Respondent) Revenue by Ms. Pooja Swaroo…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…ble Supreme Court in case of CIT versus Woodward Gov Hero MotoCorp Limited Vs. JCIT & DCIT Vs. Hero MotoCorp Ltd. ITA Nos. 1545/Del/2015 and 2424/Del/2015 (AY 2010-11) ITA No. 1609/Del/2016 and 914/Del/2016 (AY 2011-12) Page 257 of 484 India private limited 312 ITR 254. The appellant further stated that it is not the term mark to market loss, but it is in fact the adjustment on account reinstatement of trade receivable with extended prevalent at the end of the year which is squarely covered. 127) Ld. departmental representative relied upon the order of the lower authorities and submitted that Ld. assessing offi…

DCIT, Chennai vs. Ashok Leyland Ltd., Chennai

In the result, the appeal of the assessee and Revenue in ITA No

ITA 2915/CHNY/2014[2008-09]Status: DisposedITAT Chennai21 Oct 2016AY 2008-09

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Shri. Vikran Vijayaraghavan, AdvFor Respondent: Shri. Durai Pandian, IRS, JCIT
Section 46

…ITA Nos.160 & 311/13 and :- 18 -: 2915/14 revenue receipt and taxable, he has to allow the loss arisen out of foreign exchange fluctuation as expenditure in view of the decision taken by the Hon'ble Supreme Court in the case of Woodward Governor India Ltd (312 ITR 254). With regard to the exact amount of such loss, the assessee has submitted the details durinq the course of appeal proceedings as per which only "38,70,715 /- appear to be the exchange fluctuation loss out of FCCN. However, the Assessing Officer is directed to verify the details and allow the loss arisen out of exchange fluctuation as expendit…

DCIT, Chennai vs. Ashok Leyland Limited, Chennai

In the result, the appeal of the assessee and Revenue in ITA No

ITA 311/CHNY/2013[2004-05]Status: DisposedITAT Chennai21 Oct 2016AY 2004-05

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Shri. Vikran Vijayaraghavan, AdvFor Respondent: Shri. Durai Pandian, IRS, JCIT
Section 46

…ITA Nos.160 & 311/13 and :- 18 -: 2915/14 revenue receipt and taxable, he has to allow the loss arisen out of foreign exchange fluctuation as expenditure in view of the decision taken by the Hon'ble Supreme Court in the case of Woodward Governor India Ltd (312 ITR 254). With regard to the exact amount of such loss, the assessee has submitted the details durinq the course of appeal proceedings as per which only "38,70,715 /- appear to be the exchange fluctuation loss out of FCCN. However, the Assessing Officer is directed to verify the details and allow the loss arisen out of exchange fluctuation as expendit…

Ashok Leyland Limited, Chennai vs. DCIT, Chennai

In the result, the appeal of the assessee and Revenue in ITA No

ITA 160/CHNY/2013[2004-2005]Status: DisposedITAT Chennai21 Oct 2016AY 2004-2005

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Shri. Vikran Vijayaraghavan, AdvFor Respondent: Shri. Durai Pandian, IRS, JCIT
Section 46

…ITA Nos.160 & 311/13 and :- 18 -: 2915/14 revenue receipt and taxable, he has to allow the loss arisen out of foreign exchange fluctuation as expenditure in view of the decision taken by the Hon'ble Supreme Court in the case of Woodward Governor India Ltd (312 ITR 254). With regard to the exact amount of such loss, the assessee has submitted the details durinq the course of appeal proceedings as per which only "38,70,715 /- appear to be the exchange fluctuation loss out of FCCN. However, the Assessing Officer is directed to verify the details and allow the loss arisen out of exchange fluctuation as expendit…

Asst CIT 16(3), Mumbai vs. K.P. Sanghvi & Sons, Mumbai

In the result, the appeal of the revenue is dismissed

ITA 4588/MUM/2014[2009-10]Status: DisposedITAT Mumbai29 Sept 2016AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am The Asst. Commissioner Of Vs. M/S K P Sanghvi & Sons, Income Tax -16(3), Matru 1301, Prasad Chambers, Mandir, Tardeo Road, Operahouse,Mumbai-4 Mumbai-400007 Pan:Aaafk8390F .. Appellant Respondent Appellant By .. Sri R P Meena Respondent By .. Sri K Shivram Date Of Hearing .. 29-09-2016 Date Of Pronouncement .. 29 -09- 2016 O R D E R Per Mahavir Singh, Jm: This Appeal By The Revenue Is Arising Out Of The Order Of The Cit (Appeals)-27, Mumbai In Appeal No.Cit(A)-27/Ac-16(3)/135/13-14 Dated 22.4.2014. Assessment Was Framed By The Acit- Circle 16(3), Mumbai For The Assessment Year 2009-10 Vide His Order Dated 28.3.2013 U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter “The Act”).

Section 143(3)

…cognized under section 145 requires that at the year end, an assessee should make provision for all known liabilities. 2.4.13 As evident from the above, it was pleaded' that similar question arose in the case of CIT v. Woodward Governor India (P.) Ltd. [2009] 312 ITR 254 I 179 Taxman 326 (SC) that whether the loss arising on fluctuation of exchange in respect of loan taken for revenue purposed is allowable as deduction in the year of fluctuation of exchange rate or whether the same could be allowed only in the year of repayment of such loan. The Supreme Court held that the loss suffered by the assessee on account…

Bangalore International Airport Ltd., Bangalore vs. DCIT, Bangalore

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

ITA 510/BANG/2014[2010-11]Status: DisposedITAT Bangalore27 Sept 2016AY 2010-11

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raobangalore International Airport Ltd. Administration Block, Bial, Devanahalli Bangalore-560 300. … Appellant Pan:Aabc8973D Vs. Deputy Commissioner Of Income-Tax, Circle 11(2), Bangalore. … Respondent & Deputy Commissioner Of Income-Tax, Circle 11(2), Bangalore. … Appellant Vs. Bangalore International Airport Ltd. Bangalore-560 300. … Respondent

For Appellant: Shri Sampath Raghunathan, AdvocateFor Respondent: Shri Sanjay Kumar, CIT(DR)
Section 115JSection 143(1)Section 143(3)Section 43B

…. In other words, prior to amendment of section 43A, adjustment was required to be made at the end of every year on account of rate fluctuation. This position was made amply clear by the Hon’ble Supreme Court in the case of CIT vs. Woodward Governor (P) Ltd. (312 ITR 254): 30. Section 43A starts with a non obstante clause. Section 43A(1) overrides the other provisions only as regards cases falling under that sub-section. For instance, in a case where the asset is acquired, or the liability to pay in foreign exchange arises, after the change in the rate of exchange, the said sub-section has no application and the…

Ashok Leyland Ltd., Chennai vs. DCIT, Chennai

In the result, the appeal of the Revenue in ITA

ITA 2834/CHNY/2014[1995-96]Status: DisposedITAT Chennai23 Sept 2016AY 1995-96

Bench: Shri Chandra Poojari & Shri G. Pavan Kumarआयकर अपील सं./I.T.A. Nos.2825, 2826 & 2827/Mds/2014 "नधा"रण वष" /Assessment Years : 2005-06, 2006-07 & 2007-2008. The Deputy Commissioner Of M/S. Ashok Leyland Ltd, Income Tax, Vs. No.1, Sardar Patel Road, Large Taxpayer Unit -Ii, Guindy, Chennai 600 101. Chennai 600 032. [Pan Aaaca 4651L] (Department) (Assessee )

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Shri. Arun C. Bharath, IRS, CIT
Section 35D(2)Section 35D(2)(c)

…where in fact utilized for the purchase of plant and machinery and only the balance amount was repatriated to India for a specific purpose at Ennore Unit, Tamilnadu for which the funds were raised. The decision therefore will not 'come to the rescue of the (312 ITR 254) relied on by the assessee is also of no help to him. In this decision, the Supreme Court has allowed the loss arisen out of exchange fluctuation to be claimed as expenditure u/s.37(1) treating it as revenue. It amounts to say that when the loss out of exchange ITA Nos.2825 to 2827, 2834 :- 28 -: to 2839/Mds/2014. fluctuation was allowed as ex…

DCIT, Chennai vs. Ashok Leyland Ltd., Chennai

In the result, the appeal of the Revenue in ITA

ITA 2827/CHNY/2014[2007-08]Status: DisposedITAT Chennai23 Sept 2016AY 2007-08

Bench: Shri Chandra Poojari & Shri G. Pavan Kumarआयकर अपील सं./I.T.A. Nos.2825, 2826 & 2827/Mds/2014 "नधा"रण वष" /Assessment Years : 2005-06, 2006-07 & 2007-2008. The Deputy Commissioner Of M/S. Ashok Leyland Ltd, Income Tax, Vs. No.1, Sardar Patel Road, Large Taxpayer Unit -Ii, Guindy, Chennai 600 101. Chennai 600 032. [Pan Aaaca 4651L] (Department) (Assessee )

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Shri. Arun C. Bharath, IRS, CIT
Section 35D(2)Section 35D(2)(c)

…where in fact utilized for the purchase of plant and machinery and only the balance amount was repatriated to India for a specific purpose at Ennore Unit, Tamilnadu for which the funds were raised. The decision therefore will not 'come to the rescue of the (312 ITR 254) relied on by the assessee is also of no help to him. In this decision, the Supreme Court has allowed the loss arisen out of exchange fluctuation to be claimed as expenditure u/s.37(1) treating it as revenue. It amounts to say that when the loss out of exchange ITA Nos.2825 to 2827, 2834 :- 28 -: to 2839/Mds/2014. fluctuation was allowed as ex…

DCIT, Chennai vs. Ashok Leyland Ltd., Chennai

In the result, the appeal of the Revenue in ITA

ITA 2825/CHNY/2014[2005-06]Status: DisposedITAT Chennai23 Sept 2016AY 2005-06

Bench: Shri Chandra Poojari & Shri G. Pavan Kumarआयकर अपील सं./I.T.A. Nos.2825, 2826 & 2827/Mds/2014 "नधा"रण वष" /Assessment Years : 2005-06, 2006-07 & 2007-2008. The Deputy Commissioner Of M/S. Ashok Leyland Ltd, Income Tax, Vs. No.1, Sardar Patel Road, Large Taxpayer Unit -Ii, Guindy, Chennai 600 101. Chennai 600 032. [Pan Aaaca 4651L] (Department) (Assessee )

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Shri. Arun C. Bharath, IRS, CIT
Section 35D(2)Section 35D(2)(c)

…where in fact utilized for the purchase of plant and machinery and only the balance amount was repatriated to India for a specific purpose at Ennore Unit, Tamilnadu for which the funds were raised. The decision therefore will not 'come to the rescue of the (312 ITR 254) relied on by the assessee is also of no help to him. In this decision, the Supreme Court has allowed the loss arisen out of exchange fluctuation to be claimed as expenditure u/s.37(1) treating it as revenue. It amounts to say that when the loss out of exchange ITA Nos.2825 to 2827, 2834 :- 28 -: to 2839/Mds/2014. fluctuation was allowed as ex…

Addl CIT 10(2), Mumbai vs. Dow Agrosciences P.Ltd, Mumbai

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

ITA 8092/MUM/2011[2005-06]Status: DisposedITAT Mumbai23 Sept 2016AY 2005-06

Bench: Shri B.R. Baskaran (Am) & Shri C.N. Prasad (Jm)

Section 68

…ition. Under these set of facts, the Ld A.R submitted that the impugned loss cannot be treated as notional/speculation loss and the same is allowable as per the decision rendered by Hon’ble Supreme Court in the case of CIT Vs. Woodward Governor India (P) Ltd (312 ITR 254). 28. We have heard Ld D.R on this issue and perused the record. Since the decision rendered by Ld CIT(A) on this issue is in accordance with the decision rendered by Hon’ble Supreme Court in the case of CIT Vs. Woodward Governor India (P) Ltd (supra), we do not find any reason to interfere with his order on this issue. 29. The next issue conte…

ACIT 10(1), Mumbai vs. Shivshahi Punarvasan Prakalp Ltd, Mumbai

In the result, the Revenue’s appeals for A

ITA 8458/MUM/2010[2006-07]Status: DisposedITAT Mumbai23 Sept 2016AY 2006-07
For Respondent: Shri P. R. Ghosh

…he entire project has been rightly rejected. We, therefore, confirm the order of CIT(A) on this issue in all the years under consideration. 2.11.5 to 2.11.6 …..……’ The decisions relied upon by the assessee, viz. CIT vs. Woodward Governor India (P) Ltd. [2009] 312 ITR 254 (SC); CIT vs. Triveni Engineering & Industries ltd. [2011] 336 ITR 374 (Del), as well as by the tribunal in the case of Mazagon Dock Ltd. vs. CIT [2009] 29 SOT 356 (Mum) and Jacob Engineering vs. Asst. CIT (in ITA Nos. 335 and 336/Mum/2007 dated 26.5.2009) were explained and (A.Ys. 2006-07 to 2009-10) Shivshahi Punarvasan Prakalp Ltd. distinguish…

SHI vs. Hahi Punarvasan Prakalp Ltd, Mumbai

In the result, the Revenue’s appeals for A

ITA 8251/MUM/2010[2007-08]Status: DisposedITAT Mumbai23 Sept 2016AY 2007-08
For Respondent: Shri P. R. Ghosh

…he entire project has been rightly rejected. We, therefore, confirm the order of CIT(A) on this issue in all the years under consideration. 2.11.5 to 2.11.6 …..……’ The decisions relied upon by the assessee, viz. CIT vs. Woodward Governor India (P) Ltd. [2009] 312 ITR 254 (SC); CIT vs. Triveni Engineering & Industries ltd. [2011] 336 ITR 374 (Del), as well as by the tribunal in the case of Mazagon Dock Ltd. vs. CIT [2009] 29 SOT 356 (Mum) and Jacob Engineering vs. Asst. CIT (in ITA Nos. 335 and 336/Mum/2007 dated 26.5.2009) were explained and (A.Ys. 2006-07 to 2009-10) Shivshahi Punarvasan Prakalp Ltd. distinguish…

D.C.I.T. Cir-12, Kolkata vs. Usha Martin Telematics Limited, Kolkata

In the result, the appeal filed by the assessee on this ground is dismissed

ITA 838/KOL/2009[2004-05]Status: DisposedITAT Kolkata21 Sept 2016AY 2004-05

Bench: Shri N.V.Vasudevan, J.M. &Dr.A.L.Saini, A.M.)

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: G. Mallikarjuna, CIT-DR
Section 115JSection 143(1)Section 143(3)

…o relied on the following judgments where similar issues have been decided in favour of Revenue: 1)Hon`ble C Bench ITAT, Kolkata in case of ITO ward 12(3) Kolkata Vs. UMT Investments Ltd. in ITA No.554/Kol/2009 dated 30.12.2015. and 2) Woodward Governor case (312 ITR 254-SC). 4.4 On the other hand, the ld Authorized Representative (AR) for the assessee has primarily reiterated the stand taken by the Ld.CIT (Appeal), which we have already noted in our earlier para No.4.2 and the same is not being repeated for the sake of brevity. 4.5 Having heard the rival submissions, we are of the view that there is merit in t…

DCIT, Bangalore vs. M/S Bangalore International Airport Ltd., Bangalore

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

ITA 662/BANG/2014[2010-11]Status: DisposedITAT Bangalore21 Sept 2016AY 2010-11

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raobangalore International Airport Ltd. Administration Block, Bial, Devanahalli Bangalore-560 300. … Appellant Pan:Aabc8973D Vs. Deputy Commissioner Of Income-Tax, Circle 11(2), Bangalore. … Respondent & Deputy Commissioner Of Income-Tax, Circle 11(2), Bangalore. … Appellant Vs. Bangalore International Airport Ltd. Bangalore-560 300. … Respondent

For Appellant: Shri Sampath Raghunathan, AdvocateFor Respondent: Shri Sanjay Kumar, CIT(DR)
Section 115JSection 143(1)Section 143(3)Section 43B

…. In other words, prior to amendment of section 43A, adjustment was required to be made at the end of every year on account of rate fluctuation. This position was made amply clear by the Hon’ble Supreme Court in the case of CIT vs. Woodward Governor (P) Ltd. (312 ITR 254): 30. Section 43A starts with a non obstante clause. Section 43A(1) overrides the other provisions only as regards cases falling under that sub-section. For instance, in a case where the asset is acquired, or the liability to pay in foreign exchange arises, after the change in the rate of exchange, the said sub-section has no application and the…

ITO 27(3)(1), Navi Mumbai vs. Radium Creation, Navi Mumbai

In the result, Revenue’s appeal is dismissed and assessee’s appeal stands allowed

ITA 220/MUM/2015[2011-12]Status: DisposedITAT Mumbai16 Sept 2016AY 2011-12

Bench: Shri Saktijit Dey & Shri N.K. Pradhan

For Appellant: Shri Jitendra JainFor Respondent: Shri Goli Srinivas Rao
Section 10ASection 10BSection 40

…[2002] 250 ITR 146 (Mad.); ii) Indian Overseas Bank v/s CIT, [990] 183 ITR 200 (Mad.); iii) Indian Overseas Bank Ltd. v/s CIT, [2002] 246 ITR 206 (Mad.); iv) CIT v/s Wipro Finance Ltd. [2013] 351 ITR 153; and v) CIT vs. Woodward Governor India (P) Ltd. [1992] 312 ITR 254 (SC). 15. The learned Authorised Representative submitted, as the unrealised gain being a notional income is not taxable, the assessment order cannot be held to be erroneous for not bringing to tax the unrealised foreign exchange gain. In this context, he relied upon the decision of the Hon'ble Supreme Court in UCO Bank v/s CIT, [1991] 237 ITR 8…

DCIT, New Delhi vs. M/S. Haier Appliances (India) P. Ltd., New Delhi

In the result, assessee’s appeal is allowed for statistical purposes and the revenue’s appeal is dismissed

ITA 1582/DEL/2014[2009-10]Status: DisposedITAT Delhi08 Sept 2016AY 2009-10

Bench: Shri S.V. Mehrotra : & Shri Kuldip Singh :Asstt. Yr. 2009-10 Haier Appliances India Ltd., Vs. Dcit Circle 12(1), B-1/A-14, Mohan Co-Op. New Delhi. Indl. Estate, Mathura Road, New Delhi. Pan: Aabch 3162 L & Asstt. Yr. 2009-10 Dcit Circle 12(1), Vs. Haier Appliances India Ltd., New Delhi. B-1/A-14, Mohan Co-Op. Indl. Estate, Mathura Road, New Delhi. (Appellant ) ( Respondent)

For Appellant: Shri Ajay VohraFor Respondent: Shri Manish Kumar CIT(DR)
Section 143(3)Section 144C(5)

…foreign exchange fluctuations. He required the assessee to explain as to why the unrealized loss should not be disallowed as the same was notional. The assessee relied on the decision of Apex Court in the case of CIT Vs. Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC), wherein it has been held that the loss incurred by the assessee on the date of balance-sheet is an allowable loss u/s 37(1). The AO, however, following the CBDT Instruction no. 3/2010 dated 23.3.2010, disallowed the assessee’s claim. However, ld. DRP allowed the assessee’s claim observing that the same was fully covered by AS-11 and the Hon…

M/S Silicon Graphics Systems (India) Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2976/DEL/2013[2009-10]Status: DisposedITAT Delhi24 Aug 2016AY 2009-10

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Sh. Piyush Kaushik, AdvocateFor Respondent: Sh. B. Raman Janeylily, Sr. DR
Section 43(5)

…the appellant has not undertaken any such transaction of derivatives in the subject year, the same is not applicable in appellant’s case. Reliance was also placed on the decisions of Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India P. Ltd. 312 ITR 254 SC and Oil & Natural Gas Corp. Ltd. vs. CIT, 322 ITR 180 and also the decision of ITAT on the same issue in assessee’s own case for previous year which was not challenged by the department before the Hon’ble High Court. The AO, however, disallowed the loss as claimed by appellant on the ground that the assessee did not furnish any evidence/detail…

Pr. Commissioner of Income Tax-06 vs. Nitrex Chemicals India Ltd

ITA/247/2016HC Delhi23 Aug 2016

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MS. JUSTICE DEEPA SHARMA

Section 14ASection 48

…8/2016, ITA No. 249/2016, ITA No. 318/2016, ITA No. 319/2016 Page 13 be claimed as revenue loss and rather had to be disallowed. This was on the basis of his understanding of the authority in CIT Vs Woodward Governor India (P) Ltd. 312 ITR 254 SC. The CIT(A) was of the opinion that the assessing officer’s reasoning was flawed. He held that Section 43A was applicable in the circumstances of the case and AS-11 (Accounting Standard) was relied upon to indicate that exchange fluctuation gains or losses would have to be shown in the profit and loss account. 16. The revenue urges t…