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 371,887 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.

D.C.I.T Cir - 4, Kolkata vs. M/S Asian Tea & Exports Ltd, Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 1241/KOL/2013[2009-10]Status: DisposedITAT Kolkata29 Apr 2016AY 2009-10

Bench: Shri P..M.Jagtap, Am & Shri S.S.Viswanethra Ravi, Jm]

For Appellant: Shri Sanjoy Mukherjee, JCIT, Sr.DRFor Respondent: Shri S.D.Verma, Advocate & Sri Sanjeev Kadel, FCA
Section 143(2)Section 143(3)Section 37Section 37(1)

…of evaluation of the contract on the last date of the accounting period i.e., before the date of maturity of the forward contract." And applied ratio laid down by the Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India (P) Ltd reported (2009) 312 ITR 254 for the proposition that an anticipated losses on account of existing obligation as on 31st March, determinable with reasonable 10 Asian Tea & Exports Ltd. accuracy, being in the nature of expenditure/accrued liability, have to be taken into account while preparing financial statements 23. The Special Bench also applied the principle enunciated…

DCIT Cir 6(1), Mumbai vs. Jip Fashion & Restauratns India P.Ltd, Mumbai

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

ITA 3546/MUM/2014[2009-10]Status: DisposedITAT Mumbai29 Apr 2016AY 2009-10

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaआयकर अपील सं /I.Ta No. 3546/Mum/2014 ("नधा"रण वष" / Assessment Year: 2009-10 The Dcit. Cir.6(1), M/S. Jip Fashion & बनाम/ Aayakar Bhavan, Restaurants India Pvt. Ltd., Vs. Mumbai-400 020 404, Palm Spring, Link Road, Malad (W), Mumbai-400 064 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aabcj 7149K (अपीलाथ" /Appellant) .. (""यथ" / Respondent) अपीलाथ" ओर से/ Appellant By: Shri Ashish Heliwal None ""यथ" क" ओर से/Respondent By:

For Appellant: Shri Ashish Heliwal
Section 40

…f the Assessing Officer in disallowing the foreign exchange fluctuation loss. 5. We have perused the assessment order and the order of the Ld. CIT(A). The Ld. CIT(A) following the decision of the Hon’ble Supreme Court in the case of CIT Vs Woodward Governor (312 ITR 254) held that foreign exchange fluctuation is on Revenue account and is an allowable expenditure. As the Ld. CIT(A) by following the Hon’ble Supreme Court decision held that the foreign exchange fluctuation is on revenue account, we do not find any infirmity in the order and his conclusion. This ground of the Revenue is dismissed. 6. The second iss…

DCIT, Madurai vs. Penguin Apparels P Ltd., Madurai

In the result, the appeal of the Revenue in ITA

ITA 390/CHNY/2014[2009-10]Status: DisposedITAT Chennai27 Apr 2016AY 2009-10

Bench: Shri Chandra Poojari & Shri G. Pavan Kumarआयकर अपील सं./I.T.A. Nos.2230/Mds/2013 & 390/Mds/2014 "नधा"रण वष" /Assessment Years : 2010-2011 & 2009-2010. The Assistant Commissioner M/S. Penguin Apparels P. Ltd. Of Income Tax, Vs. Plot No.2, Meenakshmi Nagar, Circle I(1) Gst Road, Pasumalai, Madurai Madurai 625 004. [Pan Aabcp 7832P] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. A.V. Sreekanth, IRS, JCITFor Respondent: Shri. R. Srinivasan, Advocate
Section 115JSection 143(1)Section 143(2)Section 143(3)

…आयकर अपील"य अ"धकरण, ’सी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI "ी चं" पूजार",लेखा सद"य एवं "ीजी. पवन कुमार,"या"यकसद"यकेसम" BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER आयकर अपील सं./I.T.A. Nos.2230/Mds/2013 & 390/Mds/2014 "नधा"रण वष" /Assessment years : 2010-2011 & 2009-2010. The Assistant Commissioner M/s. Penguin Apparels P. Ltd. of Income Tax, Vs. Plot No.2, Meenakshmi Nagar, Circle I(1) GST Road, Pasumalai, Madurai Madurai 625 004. [PAN AABCP 7832P] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant by : Shri. A.V.…

ACIT, Madurai vs. M/S. Penguin Apparels P. Ltd., Madurai

In the result, the appeal of the Revenue in ITA

ITA 2230/CHNY/2013[2010-11]Status: DisposedITAT Chennai27 Apr 2016AY 2010-11

Bench: Shri Chandra Poojari & Shri G. Pavan Kumarआयकर अपील सं./I.T.A. Nos.2230/Mds/2013 & 390/Mds/2014 "नधा"रण वष" /Assessment Years : 2010-2011 & 2009-2010. The Assistant Commissioner M/S. Penguin Apparels P. Ltd. Of Income Tax, Vs. Plot No.2, Meenakshmi Nagar, Circle I(1) Gst Road, Pasumalai, Madurai Madurai 625 004. [Pan Aabcp 7832P] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. A.V. Sreekanth, IRS, JCITFor Respondent: Shri. R. Srinivasan, Advocate
Section 115JSection 143(1)Section 143(2)Section 143(3)

…आयकर अपील"य अ"धकरण, ’सी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI "ी चं" पूजार",लेखा सद"य एवं "ीजी. पवन कुमार,"या"यकसद"यकेसम" BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER आयकर अपील सं./I.T.A. Nos.2230/Mds/2013 & 390/Mds/2014 "नधा"रण वष" /Assessment years : 2010-2011 & 2009-2010. The Assistant Commissioner M/s. Penguin Apparels P. Ltd. of Income Tax, Vs. Plot No.2, Meenakshmi Nagar, Circle I(1) GST Road, Pasumalai, Madurai Madurai 625 004. [PAN AABCP 7832P] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant by : Shri. A.V.…

M/S Continental Carriers vs. Commissioner of Income Tax

ITA/415/2004HC Delhi26 Apr 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 260ASection 80

…t the method of accounting adopted by the Assessee must be scrutinised carefully and such power should be exercised reasonably and judicially. 16. Next, Mr Kaushik referred to the decision of the Supreme Court in CIT v. Woodward Governor India P. Ltd.: 312 ITR 254 SC and the decision of this Court in CIT v. Jagatjit Industries Ltd.: 339 ITR 382 SC in support of his contention that the method of accounting adopted by the ITA 264/2002 & 415/2004 Page 11 of 19 Assessee could not be c…

M/S Continental Carrier vs. Commissioner of Income Tax

ITA/264/2002HC Delhi26 Apr 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 260ASection 80

…t the method of accounting adopted by the Assessee must be scrutinised carefully and such power should be exercised reasonably and judicially. 16. Next, Mr Kaushik referred to the decision of the Supreme Court in CIT v. Woodward Governor India P. Ltd.: 312 ITR 254 SC and the decision of this Court in CIT v. Jagatjit Industries Ltd.: 339 ITR 382 SC in support of his contention that the method of accounting adopted by the ITA 264/2002 & 415/2004 Page 11 of 19 Assessee could not be c…

M/S Continental Carrier vs. Commissioner of Income Tax

ITA - 264 / 2002HC Delhi26 Apr 2016
Section 260ASection 80

…t the method of accounting adopted by the Assessee must be scrutinised carefully and such power should be exercised reasonably and judicially. 16. Next, Mr Kaushik referred to the decision of the Supreme Court in CIT v. Woodward Governor India P. Ltd.: 312 ITR 254 SC and the decision of this Court in CIT v. Jagatjit Industries Ltd.: 339 ITR 382 SC in support of his contention that the method of accounting adopted by the 2016:DHC:3175-DB ITA 264/2002 & 415/2004 Page 11 of 19 Assess…

Ranbaxy Laboratories Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, we direct the AO to reduce the book profit u/s 115JB of the Act by the amount of reversal of the provision of Rs

ITA 196/DEL/2013[2008-09]Status: DisposedITAT Delhi25 Apr 2016AY 2008-09

Bench: Sh. I. C.Sudhir Judicialmember & Sh. Prashant Maharishia.Y.: - 2008-09 Ranbaxy Laboratories Ltd. Vs Acit 12Th Floor, Devika Tower, Range -15 6, Nehru Place New Delhi New Delhi Pan No. Aaacr0127N (Appellant) (Respondent)

For Appellant: 1. Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Amrendra Kumar, CIT, DR
Section 143Section 143(3)Section 92D

…l in case of BIOCON Limited V DCIT 35 taxmann.com 335 ( SB) as under :- “9.2.8 Though discount on premium is nothing but an expenditure u/s 37(1), it is worth noting that the Hon'ble Supreme Court in the case of CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254/179 Taxman 326 has gone to the extent of covering "loss" in certain circumstances within the purview of "expenditure" as used in section in 37(1). In that case, the assessee incurred additional liability due to exchange rate fluctuation on a revenue account. The Assessing Officer did not allow deduction u/s 37. When the matter finally reached the…

M/S. Minda Industries Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed whereas the appeal of the department is dismissed

ITA 5251/DEL/2011[2008-09]Status: DisposedITAT Delhi13 Apr 2016AY 2008-09

Bench: Shri Chandra Mohan Garg & Shri Prashant Maharishi

For Appellant: Shri Pradeep Dinodia, CA
Section 143(3)Section 14ASection 43(1)

…reat the Sales Tax subsidy as capital receipt and to reduce the same amount from the cost of assets to claim reduced deprecation. Placing reliance on the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Woodward Governor India Pvt. Ltd reported in 312 ITR 254 [SC] and CIT Vs. Realest Builders and Services reported at 307 ITR 202 [SC], the ld. AR submitted that a system of accounting regularly followed by the assessee and accepted by the department in the earlier years should not be disturbed unless the AO finds that such system does not reflect the true and correct taxable income of the assessee. 5.…

M/S Minda Industries Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeals of the assessee are allowed whereas the appeal of the department is dismissed

ITA 1506/DEL/2011[2007-08]Status: DisposedITAT Delhi13 Apr 2016AY 2007-08

Bench: Shri Chandra Mohan Garg & Shri Prashant Maharishi

For Appellant: Shri Pradeep Dinodia, CA
Section 143(3)Section 14ASection 43(1)

…reat the Sales Tax subsidy as capital receipt and to reduce the same amount from the cost of assets to claim reduced deprecation. Placing reliance on the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Woodward Governor India Pvt. Ltd reported in 312 ITR 254 [SC] and CIT Vs. Realest Builders and Services reported at 307 ITR 202 [SC], the ld. AR submitted that a system of accounting regularly followed by the assessee and accepted by the department in the earlier years should not be disturbed unless the AO finds that such system does not reflect the true and correct taxable income of the assessee. 5.…

Seagram Manufacturing (P) Ltd vs. Addl CIT Range-8

In the result, assessee’s appeals are partly allowed for statistical

ITA 4784/DEL/2007[2003-2004]Status: DisposedITAT Delhi12 Apr 2016AY 2003-2004

Bench: Shri S.V. Mehrotra : & Shri Sudhanshu Srivastava :

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri A.M. Govil CIT (DR)
Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-2” NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA : JUDICIAL MEMBER ITA nos. 4783 & 4784/Del/2007 Asstt. Yrs: 2002-03 & 2003-04 Seagram Manufacturing Pvt. Ltd., Vs. ACIT Range-8, (Now Pernod Richard India Pvt. Ltd.) New Delhi. 104, Ashoka Estate, Barakhamba Road, New Delhi. PAN: AAaCS 9563 R AND ITA nos. 4779 & 4780/Del/2007 Asstt. Yrs: 2002-03 & 2003-04 ACIT Range-8, Vs. Seagram Manufacturing Pvt. Ltd., New Delhi. (Now Pernod Richard India Pvt. Ltd.) 104, Ashoka Estate, Barakhamba Road, New Delhi. ( Appellant ) (Respondent…

Seagram Manufacturing (P) Ltd vs. Addl CIT Range-8

In the result, assessee’s appeals are partly allowed for statistical

ITA 4783/DEL/2007[2002-2003]Status: DisposedITAT Delhi12 Apr 2016AY 2002-2003

Bench: Shri S.V. Mehrotra : & Shri Sudhanshu Srivastava :

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri A.M. Govil CIT (DR)
Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-2” NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA : JUDICIAL MEMBER ITA nos. 4783 & 4784/Del/2007 Asstt. Yrs: 2002-03 & 2003-04 Seagram Manufacturing Pvt. Ltd., Vs. ACIT Range-8, (Now Pernod Richard India Pvt. Ltd.) New Delhi. 104, Ashoka Estate, Barakhamba Road, New Delhi. PAN: AAaCS 9563 R AND ITA nos. 4779 & 4780/Del/2007 Asstt. Yrs: 2002-03 & 2003-04 ACIT Range-8, Vs. Seagram Manufacturing Pvt. Ltd., New Delhi. (Now Pernod Richard India Pvt. Ltd.) 104, Ashoka Estate, Barakhamba Road, New Delhi. ( Appellant ) (Respondent…

DCIT Circle 8 (1) vs. Seagram Manufacturing (P) Ltd

In the result, assessee’s appeals are partly allowed for statistical

ITA 4780/DEL/2007[2003-2004]Status: DisposedITAT Delhi12 Apr 2016AY 2003-2004

Bench: Shri S.V. Mehrotra : & Shri Sudhanshu Srivastava :

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri A.M. Govil CIT (DR)
Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-2” NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA : JUDICIAL MEMBER ITA nos. 4783 & 4784/Del/2007 Asstt. Yrs: 2002-03 & 2003-04 Seagram Manufacturing Pvt. Ltd., Vs. ACIT Range-8, (Now Pernod Richard India Pvt. Ltd.) New Delhi. 104, Ashoka Estate, Barakhamba Road, New Delhi. PAN: AAaCS 9563 R AND ITA nos. 4779 & 4780/Del/2007 Asstt. Yrs: 2002-03 & 2003-04 ACIT Range-8, Vs. Seagram Manufacturing Pvt. Ltd., New Delhi. (Now Pernod Richard India Pvt. Ltd.) 104, Ashoka Estate, Barakhamba Road, New Delhi. ( Appellant ) (Respondent…

DCIT Circle 8 (1) vs. Seagram Manufacturing (P) Ltd

In the result, assessee’s appeals are partly allowed for statistical

ITA 4779/DEL/2007[2002-2003]Status: DisposedITAT Delhi12 Apr 2016AY 2002-2003

Bench: Shri S.V. Mehrotra : & Shri Sudhanshu Srivastava :

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri A.M. Govil CIT (DR)
Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-2” NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA : JUDICIAL MEMBER ITA nos. 4783 & 4784/Del/2007 Asstt. Yrs: 2002-03 & 2003-04 Seagram Manufacturing Pvt. Ltd., Vs. ACIT Range-8, (Now Pernod Richard India Pvt. Ltd.) New Delhi. 104, Ashoka Estate, Barakhamba Road, New Delhi. PAN: AAaCS 9563 R AND ITA nos. 4779 & 4780/Del/2007 Asstt. Yrs: 2002-03 & 2003-04 ACIT Range-8, Vs. Seagram Manufacturing Pvt. Ltd., New Delhi. (Now Pernod Richard India Pvt. Ltd.) 104, Ashoka Estate, Barakhamba Road, New Delhi. ( Appellant ) (Respondent…

The Commissioner of Income- Tax - V vs. M/s. Krishnaveni Constructions

ITTA/37/2010HC Telangana22 Mar 2016

Bench: RAMESH RANGANATHAN,M.SATYANARAYANA MURTHY

Subex Limited, Bangalore vs. DCIT, Bangalore

In the result, Revenue’s appeal is partly allowed

ITA 373/BANG/2015[2010-11]Status: DisposedITAT Bangalore18 Mar 2016AY 2010-11

Bench: Shri B. Ramakotaiah & Shri Narendra Kumar Choudhury

For Appellant: Shri Raghunathan S., AdvocateFor Respondent: Ms. Neera Malhotra, CIT-II(DR)
Section 10ASection 143(3)Section 35D

…re been consistent and not inconsistent as has been observed by the CIT in the impugned order u/s.263 of the Act. The learned counsel for the Assessee has before us placed reliance on the decision of the Hon’ble Supreme Court in the case of Woodward Governors 312 ITR 254 and the decision of the decision of the Hon’ble Madras High Court in the case of CIT Vs. PVP Ventures Ltd. (2012) 23 Taxmann.com 286 (Mad.). 39. The factual position that the exchange fluctuation is owing to restatement of FCCBs is not disputed. The admitted position is that FCCBs were issued for purpose IT(TP)A Nos.373 & 374/Bang/2015 Page 12 o…

DCIT 8(1), Mumbai vs. Enercon India Ltd, Mumbai

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

ITA 4089/MUM/2012[2008-09]Status: DisposedITAT Mumbai08 Mar 2016AY 2008-09

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am आमकय अऩीर सं./I.T.A. No.6751/Mum/2011 (ननधधायण वषा / Assessment Years: 2007-08) Dy. Commissioner Of Income Tax M/S Enercon India Limited, –Range 8(1), Enercon Tower, A-9, Room No.210, Veera Industrial Estate, फनधभ/ Aayakar Bhavan, Veera Desai Road, Vs. M.K.Road, Andheri (W), Mumbai-400020 Mumbai-400053

For Appellant: Shri Manjunatha SwamyFor Respondent: Shri J P Bairagra
Section 115JSection 143(2)Section 143(3)Section 14ASection 36(1)(iii)Section 43(5)Section 43(5)(a)

…d and re-stated at the current exchange rate prevailing at the end of the year. The ld counsel strongly placed reliance on the following decisions of Tribunal in which the decision of hon‟ble Supreme Court in the case of Woolward Governor India Pvt. Ltd(2009) 312 ITR 254 and Special Bench decision in the case of Bank of Bahrain and Kuwait (41SOT29) were followed:- a) ACIT Vs M/S Venus Jewel –ITA No.7328 and 7329/Mum/2013 dated 31.7.2015; b) ACIT Vs H Dipak and Co-ITA No.7629/M/2011 dated 30.4.2013; c) CIT Vs Pashupati Capital Services Pvt Ltd dated 24.4.2015(2015-TOIL-1142-HC-MUMIT) d) Landan Star Diamond Compan…

A.C.I.T. 8(1), Mumbai vs. Enercon India Limited, Mumbai

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

ITA 6751/MUM/2011[2007-08]Status: DisposedITAT Mumbai08 Mar 2016AY 2007-08

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am आमकय अऩीर सं./I.T.A. No.6751/Mum/2011 (ननधधायण वषा / Assessment Years: 2007-08) Dy. Commissioner Of Income Tax M/S Enercon India Limited, –Range 8(1), Enercon Tower, A-9, Room No.210, Veera Industrial Estate, फनधभ/ Aayakar Bhavan, Veera Desai Road, Vs. M.K.Road, Andheri (W), Mumbai-400020 Mumbai-400053

For Appellant: Shri Manjunatha SwamyFor Respondent: Shri J P Bairagra
Section 115JSection 143(2)Section 143(3)Section 14ASection 36(1)(iii)Section 43(5)Section 43(5)(a)

…d and re-stated at the current exchange rate prevailing at the end of the year. The ld counsel strongly placed reliance on the following decisions of Tribunal in which the decision of hon‟ble Supreme Court in the case of Woolward Governor India Pvt. Ltd(2009) 312 ITR 254 and Special Bench decision in the case of Bank of Bahrain and Kuwait (41SOT29) were followed:- a) ACIT Vs M/S Venus Jewel –ITA No.7328 and 7329/Mum/2013 dated 31.7.2015; b) ACIT Vs H Dipak and Co-ITA No.7629/M/2011 dated 30.4.2013; c) CIT Vs Pashupati Capital Services Pvt Ltd dated 24.4.2015(2015-TOIL-1142-HC-MUMIT) d) Landan Star Diamond Compan…

DCIT, Circle -5 Kolkata, Kolkata vs. M/S Kesoram Industries Ltd., Kolkata

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

ITA 930/KOL/2012[2005-06]Status: DisposedITAT Kolkata29 Feb 2016AY 2005-06

Bench: : Shri M. Balaganesh

For Appellant: S/Shri R.N Bajoria, Sr. AdvocateFor Respondent: Shri Rajat Subhra Biswas,CIT, ld.DR &
Section 143(3)Section 147

…d to tax , the assessee is not entitled to claim the foreign exchange loss in Asst Year 2005-06 which had admittedly arose pursuant to comparison of the loan balances after restatement made in the earlier year. However, the decision in Woodward Governor case (312 ITR 254 –SC) was not considered in this decision. Aggrieved, the assessee is in appeal before us on the following grounds:- 1 That the Ld.CIT(A) erred in facts as well as in law by confirming the disallowance of Rs.21,25,864/ - being the loss suffered by the Appellant due to fluctuation in foreign exchange rate, without appreciating that the said loss wa…

C. Dinesh & Company P.Ltd, Mumbai vs. ACIT 5(1), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 6990/MUM/2012[2009-10]Status: DisposedITAT Mumbai29 Feb 2016AY 2009-10

Bench: Shri G.S.Pannu & Shri Pawan Singhassessment Year: 2009-10 M/S C. Dinesh & Company Pvt. Ltd. Acit 5(1), Dw-2332, Bharat Diamond Bourse, Aayakar Bhavan, Mumbai-400020 Bandra Kurla Complex, Bandra (E), Vs. Mumbai-400051. Pan: Aadcc 0451 B (Appellant) (Respondent)

For Appellant: Shri K.A. Vaidyalingan (AR)For Respondent: Shri Amit Kumar Singh (DR)
Section 40A(2)(b)Section 43(5)

…contracts and, therefore, the contracts me speculative in nature, whereas the loss is on account of restatement of outstanding forward contract at the end of the year. Ld. Counsel for the assessee relied upon the decision of Woodward Governor India Pvt. Ltd. 312 ITR 254 (Se) and the Mumbai Tribunal 's Special Bench decision in the case of Bank of Bahrain & Kuwait,5 ITR (Ttib.) 301. Ld. counsel also relied upon number of decisions of the Tribunal which have followed the decision of the Hon'ble Supreme Court and Special Bench of the Tribunal. 9, Per contra, Ld OR strongly supported the findings of the Revenue Auth…