Indian Overseas Bank v. CIT

183 ITR 200High Court1990#4254 most cited

What is Indian Overseas Bank v. CIT authority for?

Forward contracts in foreign currency that have not been settled do not represent actual profits or losses for tax purposes; they are considered notional or hypothetical income/loss.

28

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2023.

Also referred to as

Indian Overseas Bank v CIT · 183 ITR 200 · notional profit · foreign exchange contracts · un-settled forward contracts · contingent liability · hypothetical income · actual profit · taxability

Also reported as

51 Taxmann 283

Judgments citing Indian Overseas Bank v. CIT

DCIT 8(1), Mumbai vs. Aptech Ltd, Mumbai

The appeal of the revenue is dismissed

ITA 2003/MUM/2014[2009-10]Status: DisposedITAT Mumbai06 Oct 2016AY 2009-10

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am) आमकय अऩीर सं./I.T.A. No.946 & 723/Mum/2013 (ननधधायण वषा / Assessment Year :2007-08 & 2008-09)

For Appellant: Shri S C Tiwari and Rutuja N
Section 14ASection 40

…lied upon the decision in the case of : a) CIT Vs. Bharat Petroleum Corporation Ltd. (1993) 202 ITR 492 (Cal) b) CIT V/s Kerala State Drugs and Pharmaceutical Lts 192 ITR 1 (Ker); c) CIT V/s Sikaria Sons and co. 216 ITR 440(Gau); Indian Overseas Bank V/s CIT 183 ITR 200(Mad) The ld.counsel further submitted that the assessee fulfilled all the conditions enumerated under section 37(1) of the Act. The ld. Counsel also submitted that Rs.2,50,00,000/- was part of the billed amount which was already treated and included in the assessee’s income by referring to the ledger account of the Directorate of Education in th…

Aptech Ltd, Mumbai vs. DCIT 8(1), Mumbai

The appeal of the revenue is dismissed

ITA 1271/MUM/2014[2009-10]Status: DisposedITAT Mumbai06 Oct 2016AY 2009-10

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am) आमकय अऩीर सं./I.T.A. No.946 & 723/Mum/2013 (ननधधायण वषा / Assessment Year :2007-08 & 2008-09)

For Appellant: Shri S C Tiwari and Rutuja N
Section 14ASection 40

…lied upon the decision in the case of : a) CIT Vs. Bharat Petroleum Corporation Ltd. (1993) 202 ITR 492 (Cal) b) CIT V/s Kerala State Drugs and Pharmaceutical Lts 192 ITR 1 (Ker); c) CIT V/s Sikaria Sons and co. 216 ITR 440(Gau); Indian Overseas Bank V/s CIT 183 ITR 200(Mad) The ld.counsel further submitted that the assessee fulfilled all the conditions enumerated under section 37(1) of the Act. The ld. Counsel also submitted that Rs.2,50,00,000/- was part of the billed amount which was already treated and included in the assessee’s income by referring to the ledger account of the Directorate of Education in th…

Aptech Ltd, Mumbai vs. DCIT 8(1), Mumbai

The appeal of the revenue is dismissed

ITA 946/MUM/2013[2007-08]Status: DisposedITAT Mumbai06 Oct 2016AY 2007-08

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am) आमकय अऩीर सं./I.T.A. No.946 & 723/Mum/2013 (ननधधायण वषा / Assessment Year :2007-08 & 2008-09)

For Appellant: Shri S C Tiwari and Rutuja N
Section 14ASection 40

…lied upon the decision in the case of : a) CIT Vs. Bharat Petroleum Corporation Ltd. (1993) 202 ITR 492 (Cal) b) CIT V/s Kerala State Drugs and Pharmaceutical Lts 192 ITR 1 (Ker); c) CIT V/s Sikaria Sons and co. 216 ITR 440(Gau); Indian Overseas Bank V/s CIT 183 ITR 200(Mad) The ld.counsel further submitted that the assessee fulfilled all the conditions enumerated under section 37(1) of the Act. The ld. Counsel also submitted that Rs.2,50,00,000/- was part of the billed amount which was already treated and included in the assessee’s income by referring to the ledger account of the Directorate of Education in th…

Aptech Ltd, Mumbai vs. DCIT 8(1), Mumbai

The appeal of the revenue is dismissed

ITA 723/MUM/2013[2008--09]Status: DisposedITAT Mumbai06 Oct 2016

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am) आमकय अऩीर सं./I.T.A. No.946 & 723/Mum/2013 (ननधधायण वषा / Assessment Year :2007-08 & 2008-09)

For Appellant: Shri S C Tiwari and Rutuja N
Section 14ASection 40

…lied upon the decision in the case of : a) CIT Vs. Bharat Petroleum Corporation Ltd. (1993) 202 ITR 492 (Cal) b) CIT V/s Kerala State Drugs and Pharmaceutical Lts 192 ITR 1 (Ker); c) CIT V/s Sikaria Sons and co. 216 ITR 440(Gau); Indian Overseas Bank V/s CIT 183 ITR 200(Mad) The ld.counsel further submitted that the assessee fulfilled all the conditions enumerated under section 37(1) of the Act. The ld. Counsel also submitted that Rs.2,50,00,000/- was part of the billed amount which was already treated and included in the assessee’s income by referring to the ledger account of the Directorate of Education in th…

DCIT 8(1), Mumbai vs. Apatech Ltd, Mumbai

The appeal of the revenue is dismissed

ITA 1228/MUM/2013[2008-09]Status: DisposedITAT Mumbai06 Oct 2016AY 2008-09

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am) आमकय अऩीर सं./I.T.A. No.946 & 723/Mum/2013 (ननधधायण वषा / Assessment Year :2007-08 & 2008-09)

For Appellant: Shri S C Tiwari and Rutuja N
Section 14ASection 40

…lied upon the decision in the case of : a) CIT Vs. Bharat Petroleum Corporation Ltd. (1993) 202 ITR 492 (Cal) b) CIT V/s Kerala State Drugs and Pharmaceutical Lts 192 ITR 1 (Ker); c) CIT V/s Sikaria Sons and co. 216 ITR 440(Gau); Indian Overseas Bank V/s CIT 183 ITR 200(Mad) The ld.counsel further submitted that the assessee fulfilled all the conditions enumerated under section 37(1) of the Act. The ld. Counsel also submitted that Rs.2,50,00,000/- was part of the billed amount which was already treated and included in the assessee’s income by referring to the ledger account of the Directorate of Education in th…

ACIT 8(1), Mumbai vs. Apatech Ltd, Mumbai

The appeal of the revenue is dismissed

ITA 1227/MUM/2013[2007-08]Status: DisposedITAT Mumbai06 Oct 2016AY 2007-08

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am) आमकय अऩीर सं./I.T.A. No.946 & 723/Mum/2013 (ननधधायण वषा / Assessment Year :2007-08 & 2008-09)

For Appellant: Shri S C Tiwari and Rutuja N
Section 14ASection 40

…lied upon the decision in the case of : a) CIT Vs. Bharat Petroleum Corporation Ltd. (1993) 202 ITR 492 (Cal) b) CIT V/s Kerala State Drugs and Pharmaceutical Lts 192 ITR 1 (Ker); c) CIT V/s Sikaria Sons and co. 216 ITR 440(Gau); Indian Overseas Bank V/s CIT 183 ITR 200(Mad) The ld.counsel further submitted that the assessee fulfilled all the conditions enumerated under section 37(1) of the Act. The ld. Counsel also submitted that Rs.2,50,00,000/- was part of the billed amount which was already treated and included in the assessee’s income by referring to the ledger account of the Directorate of Education in th…

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

…m 13 M/s. Radium Creation foreign exchange forward contract being a notional income is not taxable. In this context, he relied upon the following decisions:– i) Indian Overseas Bank v/s CIT, [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 h…

Inventurus Knowledge Services P.Ltd, Navi Mumbai vs. ITO 5(2)(1), Mumbai

In the result appeal of the assessee company is partly allowed

ITA 5922/MUM/2013[2009-10]Status: DisposedITAT Mumbai21 Oct 2015AY 2009-10

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: - 2009-10 Inventurus Knowledge Services V. Income Tax Officer Pvt. Ltd. 5(2)(1), C/O. Seren Properties Pvt. Ltd. 525, Aaykar Bhavan, (Sez), Unit No. 204, Build No. 5, M.K. Road, Mindspace Airoli Camp, Plot No. Mumbai - 400 020. 3, Gat No. 95, Kalwa Trans, Thane Creek, Midc Industrial Area, Thane Belapur Road, Airoli, Navi Mumbai – 400 708. Pan/Gir No. Aabck4601P

…only a contingent liability as the assessee could not foresee the rate of exchange which would prevail on the date of maturity of the contract. The assessing officer referred to the decision of the Hon'ble Madras High Court in the case of Indian Overseas Bank(183 ITR 200) , wherein, similar issue was examined and it was held that before settlement of contracts in foreign currency, no actual profit could accrue. It was held that the amounts in question represented notional profits only. Drawing analogy from this decision, the assessing officer disallowed the loss of Rs.12,42,648/- treating the same as notional los…