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.

Tech Mahindra Limited (Earlier Known As Mahindra Engineering Services Ltd, Mumbai vs. Dy Commissioner of Income Tax Range 1(3), Mumbai

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

ITA 2463/MUM/2013[2009-10]Status: DisposedITAT Mumbai01 Dec 2023AY 2009-10

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Tech Mahindra Limited Dy. Cit, Range 2(2) (Earlier Known As Mahindra Mumbai Engineering Services Limited) Vs. Gateway Building, Apollo Bunder, Mumbai-400 001 Pan/Gir No. Aaacm 3484 F (Assessee) (Revenue) : & Asst. Cit-2(3)(1) Tech Mahindra Ltd. Mumbai (Earlier Known As Mahindra Engineering Services Ltd.) Vs. Mahindra Tower, 1St Floor, B Wing, Dr. G M Bhosale Marg, P K Kurne Chowk, Worli, Mumbai-400 018 Pan/Gir No. Aaacm 3484 F (Revenue) : (Assessee)

For Appellant: Shri Viral ShahFor Respondent: Shri Ashok Kumar Ambastha
Section 10(35)Section 143(1)Section 143(2)Section 143(3)Section 14ASection 250

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM Tech Mahindra Limited Dy. CIT, Range 2(2) (Earlier known as Mahindra Mumbai Engineering Services Limited) Vs. Gateway Building, Apollo Bunder, Mumbai-400 001 PAN/GIR No. AAACM 3484 F (Assessee) (Revenue) : & Asst. CIT-2(3)(1) Tech Mahindra Ltd. Mumbai (Earlier known as Mahindra Engineering Services Ltd.) Vs. Mahindra Tower, 1st Floor, B Wing, Dr. G M Bhosale Marg, P K Kurne Chowk, Worli, Mumbai-400 018 PAN/GIR No. AAACM 3484 F (Revenue) : (Assessee) Assessee by : Shri Viral Shah Respondent by :…

DCIT 2(2), Mumbai vs. Mahindra Engineering Services Ltd, Mumbai

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

ITA 2282/MUM/2013[2009-10]Status: DisposedITAT Mumbai01 Dec 2023AY 2009-10

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Tech Mahindra Limited Dy. Cit, Range 2(2) (Earlier Known As Mahindra Mumbai Engineering Services Limited) Vs. Gateway Building, Apollo Bunder, Mumbai-400 001 Pan/Gir No. Aaacm 3484 F (Assessee) (Revenue) : & Asst. Cit-2(3)(1) Tech Mahindra Ltd. Mumbai (Earlier Known As Mahindra Engineering Services Ltd.) Vs. Mahindra Tower, 1St Floor, B Wing, Dr. G M Bhosale Marg, P K Kurne Chowk, Worli, Mumbai-400 018 Pan/Gir No. Aaacm 3484 F (Revenue) : (Assessee)

For Appellant: Shri Viral ShahFor Respondent: Shri Ashok Kumar Ambastha
Section 10(35)Section 143(1)Section 143(2)Section 143(3)Section 14ASection 250

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM Tech Mahindra Limited Dy. CIT, Range 2(2) (Earlier known as Mahindra Mumbai Engineering Services Limited) Vs. Gateway Building, Apollo Bunder, Mumbai-400 001 PAN/GIR No. AAACM 3484 F (Assessee) (Revenue) : & Asst. CIT-2(3)(1) Tech Mahindra Ltd. Mumbai (Earlier known as Mahindra Engineering Services Ltd.) Vs. Mahindra Tower, 1st Floor, B Wing, Dr. G M Bhosale Marg, P K Kurne Chowk, Worli, Mumbai-400 018 PAN/GIR No. AAACM 3484 F (Revenue) : (Assessee) Assessee by : Shri Viral Shah Respondent by :…

Maithan Ceramic Ltd, Ideal Centre vs. Circle-7(1), Aayakar Bhawan

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

ITA 817/KOL/2023[2013-14]Status: DisposedITAT Kolkata29 Nov 2023AY 2013-14

Bench: Shri Rajpal Yadav, Hon’Ble & Dr. Manish Borad, Hon’Ble

For Appellant: Shri J.M. Thard, AdvocateFor Respondent: Shri B.K. Singh, JCIT, Sr. D/R
Section 143(2)Section 14ASection 250

…| आयकर अपीलीय अिधकरण "यायपीठ, कोलकाता | IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI RAJPAL YADAV, HON’BLE VICE PRESIDENT & DR. MANISH BORAD, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 817/Kol/2023 Assessment Year: 2013-14 Maithan Ceramic Ltd. Deputy Commissioner of Income 9, A.J.C. Bose Road Vs Tax, Circle-7(1), Kolkata Kolkata - 700020 [PAN: AABCM7759A] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee by : Shri J.M. Thard, Advocate Revenue by : Shri B.K. Singh, JCIT, Sr. D/R सुनवाई क" तारीख/Date of Hearing : 27/09/2023 घोषणा क" तारीख /Date of Pronouncement: 29/11/2023 आदेश/O R D E R PER DR.…

Anil Kumar Paik, Kolkata vs. ACIT, Kolkata

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

ITA 468/KOL/2023[2016-17]Status: DisposedITAT Kolkata29 Nov 2023AY 2016-17

Bench: Shri Sanjay Garg, Hon’Ble & Dr. Manish Borad, Hon’Blei.T.A. No. 468/Kol/2023 Assessment Year: 2016-17 Anil Kumar Paik Acit, Circle-8(1), Kolkata C/O S.N. Ghosh & Associates, Advocates Vs 2, Garstin Place, 2Nd Floor Suite No. 203 Off Hare Street Kolkata - 700001 [Pan : Aflpp6567R] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Somnath Ghosh, Advocate Revenue By : Shri P.P. Barman, Addl. Cit, Sr. D/R सुनवाई क" तारीख/Date Of Hearing : 21/09/2023 घोषणा क" तारीख /Date Of Pronouncement: 29/11/2023 आदेश/O R D E R Per Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The National Faceless Appeal Centre, Delhi (Hereinafter The “Ld. Cit(A)”) Dt. 15/03/2023, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2016-17. 2. The Assessee Has Raised The Following Grounds Of Appeal:-

For Appellant: Shri Somnath Ghosh, AdvocateFor Respondent: Shri P.P. Barman, Addl. CIT, Sr. D/R
Section 143(2)Section 145(3)Section 250Section 43CSection 44A

…redit is based on surmises and conjectures. We find support from the decision in the case of M.N. Dastur & Co. Ltd. vs. DCIT (1997) 61 ITD 167 (Cal.) and the judgment of the Hon’ble Supreme Court in the case of CIT vs. Woodward Governor India Pvt. Ltd. (2009) 312 ITR 254 (SC). Accordingly, Ground No. 1 raised by the assessee is allowed. 9. Ground No. 2 challenges the addition of Rs.1,71,18,489/- made by the Assessing Officer invoking Section 43CA of the Act. The ld. Assessing Officer while examining the records of the assessee also possessed the individual transactions statement related to the assessee pertaining…

ACIT-2(2)(1), Mmumbai vs. M/S. Jics Logistic Limited, Mumbai

In the result, the appeal of the revenue for assessment year the appeal of the revenue for assessment year the appeal of the revenue for assessment year

ITA 1781/MUM/2023[2017-18]Status: DisposedITAT Mumbai29 Nov 2023AY 2017-18

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2011-12 & Assessment Year: 2012-13 &

For Appellant: Mr. Satyaprakash Singh

…inciple was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] wherein it held that profits for income held that profits for income-tax purpose are to be computed in tax purpose are to be computed in accordance with ordinary principles of commercial accounting, unless a…

ACIT-2(2)(1), Mmumbai vs. M/S. Jics Logistic Limited, Mumbai

In the result, the appeal of the revenue for assessment year the appeal of the revenue for assessment year the appeal of the revenue for assessment year

ITA 1780/MUM/2023[2016-14]Status: DisposedITAT Mumbai29 Nov 2023AY 2016-14

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2011-12 & Assessment Year: 2012-13 &

For Appellant: Mr. Satyaprakash Singh

…inciple was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] wherein it held that profits for income held that profits for income-tax purpose are to be computed in tax purpose are to be computed in accordance with ordinary principles of commercial accounting, unless a…

ACIT-2(2)(1), Mmumbai vs. M/S. Jics Logistic Limited, Mumbai

In the result, the appeal of the revenue for assessment year the appeal of the revenue for assessment year the appeal of the revenue for assessment year

ITA 1779/MUM/2023[2012-13]Status: DisposedITAT Mumbai29 Nov 2023AY 2012-13

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2011-12 & Assessment Year: 2012-13 &

For Appellant: Mr. Satyaprakash Singh

…inciple was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] wherein it held that profits for income held that profits for income-tax purpose are to be computed in tax purpose are to be computed in accordance with ordinary principles of commercial accounting, unless a…

ACIT-2(2)(1), Mmumbai vs. M/S. Jics Logistic Limited, Mumbai

In the result, the appeal of the revenue for assessment year the appeal of the revenue for assessment year the appeal of the revenue for assessment year

ITA 1764/MUM/2023[2018-19]Status: DisposedITAT Mumbai29 Nov 2023AY 2018-19

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2011-12 & Assessment Year: 2012-13 &

For Appellant: Mr. Satyaprakash Singh

…inciple was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] wherein it held that profits for income held that profits for income-tax purpose are to be computed in tax purpose are to be computed in accordance with ordinary principles of commercial accounting, unless a…

ACIT-2(2)(1), Mmumbai vs. M/S. Jics Logistic Limited, Mumbai

In the result, the appeal of the revenue for assessment year the appeal of the revenue for assessment year the appeal of the revenue for assessment year

ITA 1763/MUM/2023[2015-16]Status: DisposedITAT Mumbai29 Nov 2023AY 2015-16

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2011-12 & Assessment Year: 2012-13 &

For Appellant: Mr. Satyaprakash Singh

…inciple was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] wherein it held that profits for income held that profits for income-tax purpose are to be computed in tax purpose are to be computed in accordance with ordinary principles of commercial accounting, unless a…

ACIT-2(2)(1), Mmumbai vs. M/S. Jics Logistic Limited, Mumbai

In the result, the appeal of the revenue for assessment year the appeal of the revenue for assessment year the appeal of the revenue for assessment year

ITA 1762/MUM/2023[2014-15]Status: DisposedITAT Mumbai29 Nov 2023AY 2014-15

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2011-12 & Assessment Year: 2012-13 &

For Appellant: Mr. Satyaprakash Singh

…inciple was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] wherein it held that profits for income held that profits for income-tax purpose are to be computed in tax purpose are to be computed in accordance with ordinary principles of commercial accounting, unless a…

ACIT-2(2)(1), Mmumbai vs. M/S. Jics Logistic Limited, Mumbai

In the result, the appeal of the revenue for assessment year the appeal of the revenue for assessment year the appeal of the revenue for assessment year

ITA 1761/MUM/2023[2013-14]Status: DisposedITAT Mumbai29 Nov 2023AY 2013-14

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2011-12 & Assessment Year: 2012-13 &

For Appellant: Mr. Satyaprakash Singh

…inciple was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] wherein it held that profits for income held that profits for income-tax purpose are to be computed in tax purpose are to be computed in accordance with ordinary principles of commercial accounting, unless a…

ACIT-2(2)(1), Mmumbai vs. M/S. Jics Logistic Limited, Mumbai

In the result, the appeal of the revenue for assessment year the appeal of the revenue for assessment year the appeal of the revenue for assessment year

ITA 1760/MUM/2023[2011-12]Status: DisposedITAT Mumbai29 Nov 2023AY 2011-12

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2011-12 & Assessment Year: 2012-13 &

For Appellant: Mr. Satyaprakash Singh

…inciple was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward was again retreated by the Supreme Court in the case of Woodward Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] Governor [CIT v. Woodward Governor India (P.) Ltd.[2009] 312 ITR 254] wherein it held that profits for income held that profits for income-tax purpose are to be computed in tax purpose are to be computed in accordance with ordinary principles of commercial accounting, unless a…

Bajaj Auto Ltd., Mumbai vs. DCIT -Ltu -1, Mumbai

In the result we find that in absence of tangible material, the reopening of assessment cannot be made

ITA 3949/MUM/2019[2010-11]Status: DisposedITAT Mumbai29 Nov 2023AY 2010-11

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm The Dy. Commissioner Of Bajaj Auto Limited 2N D Floor, Bajaj Bhawan, Income-Tax, Vs. 226, Nariman Point, Large Taxpayer Unit-1 Mumbai-400 021 Mumbai-400 005 (Appellant) (Respondent) Pan No. Aadcb2923M

For Appellant: Shri Percy Pardiwala, Sr. Adv. &For Respondent: Shri S Srinivasu, CIT DR
Section 143(3)Section 145(2)Section 147

…such restatement is on revenue account, then the corresponding gain also would be on revenue account. Reliance in this regard is placed on the decision of the Hon'ble Supreme Court in the case of CIT vs. Woodward Governer India (P) Ltd. dated 9th April, 2009 (312 ITR 254 SC) 7.3.1 In the submission the assessee has contended that since the AO has not allowed the loss claimed in the assessment year 2009-10 as also in A.Y. 2014-15, treating the same to be notional/ contingent in nature and therefore there should be no addition made in the year under consideration. In regard to such contention of the assessee it is…

Addl. CIT, Special Range- 7, New Delhi vs. Ptc India Financial Services Ltd, New Delhi

In the result, the appeals of the assessee for AY 2013-14 and 2014-15

ITA 7433/DEL/2017[2014-15]Status: DisposedITAT Delhi29 Nov 2023AY 2014-15

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2013-14 & Asstt. Year 2014-15

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri Vivek Vardhan, Sr. DR
Section 234BSection 36(1)(viii)Section 37

…against the assessee. The Ld. AR submitted that foreign exchange loss in relation to ECBs is an allowable deduction under section 37(1) of the Act and is duly covered by the judgment of Hon’ble Supreme Court in CIT vs. Woodward Governor India (P) Ltd. (2009) 312 ITR 354(SC) and the principles laid down therein have been followed in Oil and Natural Gas Corpn Ltd. (2010) 230 CTR (SC) 313. The Ld. AR further submitted that the decisions in Indian Molasses Co. P. Ltd. vs. CIT (1959) 371 ITR 66 (SC) and in Southern Technologies Ltd. vs. JCIT (2010) 320 ITR 577 (SC) referred to by the Ld. CIT(A) are not on the treatme…

Ptc India Financial Services Ltd., New Delhi vs. DCIT, Circle- 19(2), New Delhi

In the result, the appeals of the assessee for AY 2013-14 and 2014-15

ITA 7273/DEL/2017[2014-15]Status: DisposedITAT Delhi29 Nov 2023AY 2014-15

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2013-14 & Asstt. Year 2014-15

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri Vivek Vardhan, Sr. DR
Section 234BSection 36(1)(viii)Section 37

…against the assessee. The Ld. AR submitted that foreign exchange loss in relation to ECBs is an allowable deduction under section 37(1) of the Act and is duly covered by the judgment of Hon’ble Supreme Court in CIT vs. Woodward Governor India (P) Ltd. (2009) 312 ITR 354(SC) and the principles laid down therein have been followed in Oil and Natural Gas Corpn Ltd. (2010) 230 CTR (SC) 313. The Ld. AR further submitted that the decisions in Indian Molasses Co. P. Ltd. vs. CIT (1959) 371 ITR 66 (SC) and in Southern Technologies Ltd. vs. JCIT (2010) 320 ITR 577 (SC) referred to by the Ld. CIT(A) are not on the treatme…

ACIT, New Delhi vs. M/S. Ptc India Financial Services Ltd., New Delhi

In the result, the appeals of the assessee for AY 2013-14 and 2014-15

ITA 2175/DEL/2017[2013-14]Status: DisposedITAT Delhi29 Nov 2023AY 2013-14

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2013-14 & Asstt. Year 2014-15

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri Vivek Vardhan, Sr. DR
Section 234BSection 36(1)(viii)Section 37

…against the assessee. The Ld. AR submitted that foreign exchange loss in relation to ECBs is an allowable deduction under section 37(1) of the Act and is duly covered by the judgment of Hon’ble Supreme Court in CIT vs. Woodward Governor India (P) Ltd. (2009) 312 ITR 354(SC) and the principles laid down therein have been followed in Oil and Natural Gas Corpn Ltd. (2010) 230 CTR (SC) 313. The Ld. AR further submitted that the decisions in Indian Molasses Co. P. Ltd. vs. CIT (1959) 371 ITR 66 (SC) and in Southern Technologies Ltd. vs. JCIT (2010) 320 ITR 577 (SC) referred to by the Ld. CIT(A) are not on the treatme…

M/S. Ptc India Financial Services Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee for AY 2013-14 and 2014-15

ITA 2162/DEL/2017[2013-14]Status: DisposedITAT Delhi29 Nov 2023AY 2013-14

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2013-14 & Asstt. Year 2014-15

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri Vivek Vardhan, Sr. DR
Section 234BSection 36(1)(viii)Section 37

…against the assessee. The Ld. AR submitted that foreign exchange loss in relation to ECBs is an allowable deduction under section 37(1) of the Act and is duly covered by the judgment of Hon’ble Supreme Court in CIT vs. Woodward Governor India (P) Ltd. (2009) 312 ITR 354(SC) and the principles laid down therein have been followed in Oil and Natural Gas Corpn Ltd. (2010) 230 CTR (SC) 313. The Ld. AR further submitted that the decisions in Indian Molasses Co. P. Ltd. vs. CIT (1959) 371 ITR 66 (SC) and in Southern Technologies Ltd. vs. JCIT (2010) 320 ITR 577 (SC) referred to by the Ld. CIT(A) are not on the treatme…

Icici Bank Ltd, Mumbai vs. Addl CIT RG (1), Mumbai

Appeals are partly allowed

ITA 4248/MUM/2014[2007-08]Status: DisposedITAT Mumbai09 Nov 2023AY 2007-08

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 10(15)Section 115JSection 234BSection 41(4)Section 88ESection 90

…us, the Ld.AR submitted that the MTM losses are arising out of the derivatives and the same is incurred in the regular course of business of the assessee. The Ld.AR relied on the decision of the Supreme Court in the case of Woodward Governor Pvt. Ltd v/s CIT 312 ITR 252 to submit that the Apex Court in the said decision held that the notional loss suffered on foreign exchange difference is in the nature of business loss and allowable as a deduction. The Ld.AR further placed reliance on the decision of the Special Bench of the Mumbai Benches of the Tribunal in the case of CIT Vs Bank of Bahrain & Kuwait 132 TTJ 5…

DCIT Cir 3(1), Mumbai vs. Icici Bank Ltd, Mumbai

Appeals are partly allowed

ITA 4158/MUM/2014[2007-08]Status: DisposedITAT Mumbai09 Nov 2023AY 2007-08

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 10(15)Section 115JSection 234BSection 41(4)Section 88ESection 90

…us, the Ld.AR submitted that the MTM losses are arising out of the derivatives and the same is incurred in the regular course of business of the assessee. The Ld.AR relied on the decision of the Supreme Court in the case of Woodward Governor Pvt. Ltd v/s CIT 312 ITR 252 to submit that the Apex Court in the said decision held that the notional loss suffered on foreign exchange difference is in the nature of business loss and allowable as a deduction. The Ld.AR further placed reliance on the decision of the Special Bench of the Mumbai Benches of the Tribunal in the case of CIT Vs Bank of Bahrain & Kuwait 132 TTJ 5…

Cognizant Technology Solutions India Private Ltd., Chennai vs. ACIT, Central Circle1(1), Chennai

The appeal stand dismissed

ITA 159/CHNY/2022[2009-10]Status: DisposedITAT Chennai06 Nov 2023AY 2009-10

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.159/Chny/2022 (िनधा*रण वष* / Assessment Year: 2009-10) M/S. Cognizant Technology Solutions India Acit Pvt. Ltd. Central Circle-1(1), बनाम/ New No.165, Old No.110, Chennai. Vs. Menon Eternity Building, 6Th Floor, St. Mary’S Road, Alwarpet, Chennai-600 018. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacd-3312-M (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri N.V.Balaji (Advocate)-Ld.Ar " थ"कीओरसे/Respondent By : Shri S.Senthil Kumaran (Cit) -Ld. Dr Date Of Final Hearing : 01-11-2023 : 06-11-2023 Date Of Pronouncement

For Appellant: Shri N.V.Balaji (Advocate)-Ld.ARFor Respondent: Shri S.Senthil Kumaran (CIT) -Ld. DR
Section 115J

…erred in stating that the foreign exchange loss has been accounted notionally and artificially by the Appellant. 7.The learned CIT(A) has failed to appreciate the principle laid down by the Hon'ble Supreme Court in the case of Woodward Governor India Pvt Ltd (312 ITR 254) which is squarely applicable to the Appellant's case as the foreign exchange loss on outstanding forward contracts arising on the balance sheet date is on revenue account. 8. The learned CIT(A) has also failed to appreciate that the Hon'ble ITAT, while remanding the matter back to the learned CIT(A), had also held that the foreign exchange loss…