Munjal Showa Ltd. v. DCIT

94 TTJ 227Income Tax Appellate Tribunal2005#6426 most cited

What is Munjal Showa Ltd. v. DCIT authority for?

Foreign currency, and therefore derivative/forward contracts in respect of foreign currency, cannot be considered a commodity for the purpose of speculative transaction provisions. Such contracts entered into for hedging foreign exchange fluctuations are not speculative.

18

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2026.

Also referred to as

Munjal Showa Ltd. v. DCIT · 94 TTJ 227 · speculative transaction · section 43(5) · foreign currency · commodity · hedging · forward contract · ITAT

Sections most often in play

Section 37(1)Section 43(5)Section 145(1)Section 115JBSection 143(3)Section 147Section 153ASection 92CA

Issues it is cited on

section 145(1)section 209section 43(5)speculative transactionsection 43arule of consistencymercantile system of accountingsection 30profits and gains of business or professionsundry creditorssection 32search assessment

Judgments citing Munjal Showa Ltd. v. DCIT

Hcl Technologies Ltd., New Delhi vs. ACIT, New Delhi

The appeal is allowed as indicated above

ITA 5465/DEL/2011[2007-08]Status: DisposedITAT Delhi15 Apr 2026AY 2007-08

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 10ASection 143Section 144Section 144C(13)

…ve loss" as contained in Section 43(5) of the Act are not applicable in the case of losses arising from the forward covers taken by the assessee. Kind attention is invited to the decision of Delhi Bench of the Tribunal in the case of Munjal Showa Ltd vs DCIT: 94 TTJ 227 (Del Trib.), wherein while examining the meaning of the word commodity", as used in section 43(5) of the 155 ITA Nos.- 5624/del/2010 & 5465/Del/2011 HCL Technologies Ltd. Act, the Court held that foreign currency cannot be regarded as *commodity for the purposes of the said section and, therefore, derivative/ forward contract in respect of the sa…

Hcl Technologies Ltd, New Delhi vs. ACIT, New Delhi

The appeal is allowed as indicated above

ITA 5624/DEL/2010[2006-07]Status: DisposedITAT Delhi15 Apr 2026AY 2006-07

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 10ASection 143Section 144Section 144C(13)

…ve loss" as contained in Section 43(5) of the Act are not applicable in the case of losses arising from the forward covers taken by the assessee. Kind attention is invited to the decision of Delhi Bench of the Tribunal in the case of Munjal Showa Ltd vs DCIT: 94 TTJ 227 (Del Trib.), wherein while examining the meaning of the word commodity", as used in section 43(5) of the 155 ITA Nos.- 5624/del/2010 & 5465/Del/2011 HCL Technologies Ltd. Act, the Court held that foreign currency cannot be regarded as *commodity for the purposes of the said section and, therefore, derivative/ forward contract in respect of the sa…

M/S. Coastal Energy Private Limited Represented by Liquidator, Chennai vs. DCIT, Corporate Circle-1(2), Chennai

In the result, appeal filed by the revenue for the assessment year 2008-09 is dismissed and appeals filed by the assessee for the assessment years 2011-12, 2012-13 & 2013-

ITA 1366/CHNY/2023[2013-14]Status: DisposedITAT Chennai25 Oct 2024AY 2013-14

Bench: Shri Mahavir Singh, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकरअपीलसं./Ita No.: 1363/Chny/2023 िनधा"रणवष" / Assessment Year: 2008-09 Assistant Commissioner Of Coastal Energy Private Limited Income Tax, Central Circle -1(1) V. (Under Official Liquidator), No.46, M.G. Road, Old No.22, New No.28, Menod Nungambakkam, Street, Purasawakkam, Chennai – 600 034. Chennai – 600 007. [Pan: Aaacc-4160-A] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./Ita Nos.: 1364, 1365 & 1366/Chny/2023 िनधा"रणवष" / Assessment Years: 2011-12, 2012-13 & 2013-14 Coastal Energy Private Limited Deputy Commissioner Of Income (Under Official Liquidator), V. Tax, Old No.22, New No.28, Menod Corporate Circle -1(2), Chennai. Street, Purasawakkam, (Now Assessed By Assistant Chennai – 600 007. Commissioner Of Income, [Pan: Aaacc-4160-A] Central Circle -1(1), Chennai. (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. B. Ramakrishnan, Fca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 11.09.2024 घोषणा क" तारीख/Date Of Pronouncement : 25.10.2024 आदेश /O R D E R

For Respondent: Shri. A. Sasikumar, CIT
Section 139(1)Section 143(3)Section 148

…ent case for the simple reason that foreign currency is not a trading commodity. :-15-: ITA. Nos:1363 to 1366 /Chny/2023 6.5 In this regard, Ld.AR drew our attention to the decision of the Delhi Bench of the Tribunal in the case of Munjal Showa Ltd. v. DCIT: 94 TTJ 227, wherein the Tribunal held as under: "31. Foreign currency or any currency is neither commodity nor shares. The Sale of Goods Act, specifically excludes cash from the definition of goods. Besides, no person other than authoriseddealers and money changers are allowed in India to trade in foreign currency, much less speculate. Sec. 8 of the Foreign…

M/S. Coastal Energy Private Limited Represented by Liquidator, Chennai vs. DCIT, Corporate Circle-1(2), Chennai

In the result, appeal filed by the revenue for the assessment year 2008-09 is dismissed and appeals filed by the assessee for the assessment years 2011-12, 2012-13 & 2013-

ITA 1365/CHNY/2023[2012-13]Status: DisposedITAT Chennai25 Oct 2024AY 2012-13

Bench: Shri Mahavir Singh, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकरअपीलसं./Ita No.: 1363/Chny/2023 िनधा"रणवष" / Assessment Year: 2008-09 Assistant Commissioner Of Coastal Energy Private Limited Income Tax, Central Circle -1(1) V. (Under Official Liquidator), No.46, M.G. Road, Old No.22, New No.28, Menod Nungambakkam, Street, Purasawakkam, Chennai – 600 034. Chennai – 600 007. [Pan: Aaacc-4160-A] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./Ita Nos.: 1364, 1365 & 1366/Chny/2023 िनधा"रणवष" / Assessment Years: 2011-12, 2012-13 & 2013-14 Coastal Energy Private Limited Deputy Commissioner Of Income (Under Official Liquidator), V. Tax, Old No.22, New No.28, Menod Corporate Circle -1(2), Chennai. Street, Purasawakkam, (Now Assessed By Assistant Chennai – 600 007. Commissioner Of Income, [Pan: Aaacc-4160-A] Central Circle -1(1), Chennai. (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. B. Ramakrishnan, Fca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 11.09.2024 घोषणा क" तारीख/Date Of Pronouncement : 25.10.2024 आदेश /O R D E R

For Respondent: Shri. A. Sasikumar, CIT
Section 139(1)Section 143(3)Section 148

…ent case for the simple reason that foreign currency is not a trading commodity. :-15-: ITA. Nos:1363 to 1366 /Chny/2023 6.5 In this regard, Ld.AR drew our attention to the decision of the Delhi Bench of the Tribunal in the case of Munjal Showa Ltd. v. DCIT: 94 TTJ 227, wherein the Tribunal held as under: "31. Foreign currency or any currency is neither commodity nor shares. The Sale of Goods Act, specifically excludes cash from the definition of goods. Besides, no person other than authoriseddealers and money changers are allowed in India to trade in foreign currency, much less speculate. Sec. 8 of the Foreign…

M/S. Coastal Energy Private Limited Represented by Liquidator, Chennai vs. DCIT, Corporate Circle-1 (2), Chennai

In the result, appeal filed by the revenue for the assessment year 2008-09 is dismissed and appeals filed by the assessee for the assessment years 2011-12, 2012-13 & 2013-

ITA 1364/CHNY/2023[2011-12]Status: DisposedITAT Chennai25 Oct 2024AY 2011-12

Bench: Shri Mahavir Singh, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकरअपीलसं./Ita No.: 1363/Chny/2023 िनधा"रणवष" / Assessment Year: 2008-09 Assistant Commissioner Of Coastal Energy Private Limited Income Tax, Central Circle -1(1) V. (Under Official Liquidator), No.46, M.G. Road, Old No.22, New No.28, Menod Nungambakkam, Street, Purasawakkam, Chennai – 600 034. Chennai – 600 007. [Pan: Aaacc-4160-A] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./Ita Nos.: 1364, 1365 & 1366/Chny/2023 िनधा"रणवष" / Assessment Years: 2011-12, 2012-13 & 2013-14 Coastal Energy Private Limited Deputy Commissioner Of Income (Under Official Liquidator), V. Tax, Old No.22, New No.28, Menod Corporate Circle -1(2), Chennai. Street, Purasawakkam, (Now Assessed By Assistant Chennai – 600 007. Commissioner Of Income, [Pan: Aaacc-4160-A] Central Circle -1(1), Chennai. (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. B. Ramakrishnan, Fca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 11.09.2024 घोषणा क" तारीख/Date Of Pronouncement : 25.10.2024 आदेश /O R D E R

For Respondent: Shri. A. Sasikumar, CIT
Section 139(1)Section 143(3)Section 148

…ent case for the simple reason that foreign currency is not a trading commodity. :-15-: ITA. Nos:1363 to 1366 /Chny/2023 6.5 In this regard, Ld.AR drew our attention to the decision of the Delhi Bench of the Tribunal in the case of Munjal Showa Ltd. v. DCIT: 94 TTJ 227, wherein the Tribunal held as under: "31. Foreign currency or any currency is neither commodity nor shares. The Sale of Goods Act, specifically excludes cash from the definition of goods. Besides, no person other than authoriseddealers and money changers are allowed in India to trade in foreign currency, much less speculate. Sec. 8 of the Foreign…

Assistant Commissioner of Income Tax, Chennai vs. Coastal Energy Private Limited (Under Official Liquidator), Chennai

In the result, appeal filed by the revenue for the assessment year 2008-09 is dismissed and appeals filed by the assessee for the assessment years 2011-12, 2012-13 & 2013-

ITA 1363/CHNY/2023[2008-09]Status: DisposedITAT Chennai25 Oct 2024AY 2008-09

Bench: Shri Mahavir Singh, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकरअपीलसं./Ita No.: 1363/Chny/2023 िनधा"रणवष" / Assessment Year: 2008-09 Assistant Commissioner Of Coastal Energy Private Limited Income Tax, Central Circle -1(1) V. (Under Official Liquidator), No.46, M.G. Road, Old No.22, New No.28, Menod Nungambakkam, Street, Purasawakkam, Chennai – 600 034. Chennai – 600 007. [Pan: Aaacc-4160-A] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./Ita Nos.: 1364, 1365 & 1366/Chny/2023 िनधा"रणवष" / Assessment Years: 2011-12, 2012-13 & 2013-14 Coastal Energy Private Limited Deputy Commissioner Of Income (Under Official Liquidator), V. Tax, Old No.22, New No.28, Menod Corporate Circle -1(2), Chennai. Street, Purasawakkam, (Now Assessed By Assistant Chennai – 600 007. Commissioner Of Income, [Pan: Aaacc-4160-A] Central Circle -1(1), Chennai. (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. B. Ramakrishnan, Fca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 11.09.2024 घोषणा क" तारीख/Date Of Pronouncement : 25.10.2024 आदेश /O R D E R

For Respondent: Shri. A. Sasikumar, CIT
Section 139(1)Section 143(3)Section 148

…ent case for the simple reason that foreign currency is not a trading commodity. :-15-: ITA. Nos:1363 to 1366 /Chny/2023 6.5 In this regard, Ld.AR drew our attention to the decision of the Delhi Bench of the Tribunal in the case of Munjal Showa Ltd. v. DCIT: 94 TTJ 227, wherein the Tribunal held as under: "31. Foreign currency or any currency is neither commodity nor shares. The Sale of Goods Act, specifically excludes cash from the definition of goods. Besides, no person other than authoriseddealers and money changers are allowed in India to trade in foreign currency, much less speculate. Sec. 8 of the Foreign…

DCIT, New Delhi vs. M/S. J.K. Technosoft Ltd., New Delhi

In the result, the Appeal of the Revenue in ITA No

ITA 6160/DEL/2016[2009-10]Status: DisposedITAT Delhi30 Apr 2024AY 2009-10

Bench: Sh. Pradip Kumar Kedia & Sh. Yogesh Kumar U.S.Dcit Vs. J. K. Techno Soft Ltd. Circle 13(2) A-2, Shopping Complex, C. R. Building Masjid Moth, Greater New Delhi Kailsah Part-Ii New Delhi Pan: Aaacj0381L Appellant Respondent Assessee By Shri Neeraj Jain, Adv & Sh. Himanshu Goel, Ca Revenue By Shri Rajesh Mahajan, Sr. Dr Date Of Hearing 18/04/2024 Date Of Pronouncement 30/04/2024 Order

Section 115J

…ct is entered into to hedge and safe guard the losses towards foreign exchange fluctuation. 9.2 The appellant has relied upon the various judgments, as reproduced earlier especially the decision of Hon'ble ITAT Delhi in the case of Munjal Showa Ltd. vs. DCIT 94 TTJ 227 wherein it is held that the foreign currency cannot be regarding as commodity for the purpose of the said section and accordingly derivate/forward contract in respect of same cannot also be considered as commodity for the purpose of said section. 9.3 It is also stated that the derivate contracts were genuine hedging contracts and were not entered…

Deputy Commisssioner of Income Tax, Circle -1, Aurangabad vs. Endurance Technologies Pvt. Ltd, Aurangabad

Appeals are dismissed in above terms

ITA 1694/PUN/2017[2012-13]Status: DisposedITAT Pune15 Jul 2022AY 2012-13

Bench: Shri S.S.Godara, Jm & Shri Dr. Dipak P. Ripote, Am आयकर अपीऱ सं. / Ita No. 989/Pn/2015 ननधधारण वषा / Assessment Year : 2010-11

For Appellant: Shri Nikhil Pathak & Abhay A. AvchatFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 14ASection 154Section 43(5)Section 73(4)

…eign exchange forward cover is the revenue receipt chargeable to tax as income from business/as adventure in the nature of trade/as capital income and /or profit arising on speculative transactions u/s.43(5) of the Act.‖ (2) Munjal Showa Ltd. Vs. DCIT (2005) 94 TTJ 227 (Delhi) In this case, it has been laid down as under – ―Foreign currency or any currency is neither commodity nor shares. The Sale of Goods Act specifically excludes cash from the definition of goods. Besides, no person other than authorized dealers and money changers are allowed in India to trader in foreign currency, much less speculate. Sec. 8…

Deputu Commissioner of Income-Tax vs. Endurance Technologies Pvt. Ltd., Aurangabad

Appeals are dismissed in above terms

ITA 958/PUN/2016[2011-12]Status: DisposedITAT Pune15 Jul 2022AY 2011-12

Bench: Shri S.S.Godara, Jm & Shri Dr. Dipak P. Ripote, Am आयकर अपीऱ सं. / Ita No. 989/Pn/2015 ननधधारण वषा / Assessment Year : 2010-11

For Appellant: Shri Nikhil Pathak & Abhay A. AvchatFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 14ASection 154Section 43(5)Section 73(4)

…eign exchange forward cover is the revenue receipt chargeable to tax as income from business/as adventure in the nature of trade/as capital income and /or profit arising on speculative transactions u/s.43(5) of the Act.‖ (2) Munjal Showa Ltd. Vs. DCIT (2005) 94 TTJ 227 (Delhi) In this case, it has been laid down as under – ―Foreign currency or any currency is neither commodity nor shares. The Sale of Goods Act specifically excludes cash from the definition of goods. Besides, no person other than authorized dealers and money changers are allowed in India to trader in foreign currency, much less speculate. Sec. 8…

Assistant Commissioner of Income-Tax vs. Endurance Technologies Pvt. Ltd., Aurangabad

Appeals are dismissed in above terms

ITA 989/PUN/2015[2010-11]Status: DisposedITAT Pune15 Jul 2022AY 2010-11

Bench: Shri S.S.Godara, Jm & Shri Dr. Dipak P. Ripote, Am आयकर अपीऱ सं. / Ita No. 989/Pn/2015 ननधधारण वषा / Assessment Year : 2010-11

For Appellant: Shri Nikhil Pathak & Abhay A. AvchatFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 14ASection 154Section 43(5)Section 73(4)

…eign exchange forward cover is the revenue receipt chargeable to tax as income from business/as adventure in the nature of trade/as capital income and /or profit arising on speculative transactions u/s.43(5) of the Act.‖ (2) Munjal Showa Ltd. Vs. DCIT (2005) 94 TTJ 227 (Delhi) In this case, it has been laid down as under – ―Foreign currency or any currency is neither commodity nor shares. The Sale of Goods Act specifically excludes cash from the definition of goods. Besides, no person other than authorized dealers and money changers are allowed in India to trader in foreign currency, much less speculate. Sec. 8…

Essel Propack Ltd, Mumbai vs. DCIT RG 6(2), Mumbai

In the result, appeal of the assessee is allowed whereas appeal of the Revenue is dismissed

ITA 5312/MUM/2015[2009-10]Status: DisposedITAT Mumbai08 Jan 2018AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm M/S. Essel Propack Ltd., Vs. Dcit Rg 6(2) R.No.563, 5Th Floor Top Floor, Times Tower Kamala City, Aayakar Bhavan Senapati Bapat Marg Mumbai – 400 020 Lower Parel, Mumbai – 400013 Pan/Gir No.Aaace1568L Appellant) .. Respondent) Dcit Cir 6(3)(2) Vs. M/S. Essel Propack Ltd., R.No.522, 5Th Floor Top Floor, Times Tower Aayakar Bhavan Kamala City, Mumbai – 400 020 Senapati Bapat Marg Lower Parel, Mumbai – 400013 Pan/Gir No. Aaace1568L Appellant) .. Respondent) Assessee By Shri Madhur Agarwal & Shri Jay Bhansali Revenue By Shri V. Justin

Section 143(3)Section 14ASection 36(1)(iii)Section 43(5)

…odity includes all kinds of goods. The Forward Contracts (Regulation) Act, 1952 (FCRA) defines 'goods' as 'every kind of movable property other than actionable claims, money and securities'. (e) The Delhi Bench of ITAT in the case of Munjal Showa Ltd. v. DCIT 94 TTJ 227 has held as under: 8 "Foreign currency or any currency is neither commodity nor shares. The Sale of Goods Act specifically excludes cash from the definition of goods. Besides, no person other than authorised dealers and money changers are allowed in India to trade in foreign currency, much less speculate. S. 8 of the Foreign Exchange Regulations A…

Indian Stitches Pvt Ltd., Tiruppur vs. ACIT, Tiruppur

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

ITA 1222/CHNY/2015[2009-10]Status: DisposedITAT Chennai29 Jun 2017AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita No.1222/Mds/2015 "नधा"रण वष" / Assessment Year : 2009-10

For Appellant: Sh. T. Banusekar, CAFor Respondent: Smt. Tripurasundari, JCIT
Section 43(5)

…आयकर अपील"य अ"धकरण, ‘ए’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी एस जयरामन, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1222/Mds/2015 "नधा"रण वष" / Assessment Year : 2009-10 M/s Indian Stitches Pvt. Ltd., The Assistant Commissioner of 24/64, Asher Nagar, v. Income Tax, 60 Feet Road, Gandhi Road, Company Circle, Tirupur – 641 603. Tirupur. PAN : AABCI 1268 C (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Sh. T. Banusekar, CA ""यथ" क" ओर स…

DCIT, Chennai vs. Emerald Resilient Tyre Manufactures Pvt Ltd., Chennai

In the result, the Revenue appeal is allowed

ITA 371/CHNY/2014[2008-2009]Status: DisposedITAT Chennai21 Jun 2017AY 2008-2009

Bench: Shri Chandra Poojari & Shri. G. Pavan Kumar

For Appellant: Shri. Supriyo Pal, JCITFor Respondent: Shri. Vikram
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 43(5)

…ermed as business transactions as such since the said loss had not arisen out of manufacturing or trading activity,’ which means it is a speculative loss. 2.4 It is submitted that the decision relied upon by the CIT(A) in the case of Munjal Shawa Ltd Vs DCIT (94 TTJ 227) (Del) cannot be applied to the facts of this case since the above decisions were rendered in the context as to whether foreign currency is a commodity for the purpose of sec. 43(5) of the Act. 2.5 It is submitted that the decision in the case of Shree Capital Services Ltd., Vs ACIT (121 ITD 498)(Kol) is also rendered in the context as to whether…

DCIT 5(2), Mumbai vs. London Star Diamond Co. India P.Ltd, Mumbai

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

ITA 1359/MUM/2014[2010-11]Status: DisposedITAT Mumbai07 Nov 2016AY 2010-11

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 1359/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) The Deputy Commissioner Of London Star Diamond बनाम/ Income Tax 5(2) Company (India) Private V. Room No. 571, Aayakar Limited Bhawan, M K Road, Mumbai- 1610/1611 , 400 020 Prasad Chambers, Opera House, Mumbai-400 004 "थायी लेखा सं./Pan : Aaacl0576B .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri Harsh Kothari
Section 143(3)Section 43(5)

…e assessee. Further, assessee argued that the provisions of section 43(5) are not applicable to this case as it applied only to the commodity including stocks and shares and relied on the decision of the ITAT, Delhi in the case of Munjul Showa Ltd. v. Dy.CIT. 94 TTJ 227 [2005]. As per the assessee the forward contracts do no constitutes 'commodity', which is precondition for invoking the said sub-section (5) of section 43 of the Act. Even if it is applied, the impugned FCs being hedging in nature are covered by clause (a) to the proviso to section 43(5) of the Act. The outstanding receivables are always higher th…

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

…siness of manufacturing vehicles, the benefit received by way of discount on early payment is to be also considered as derived from the said business for the purposes of claiming deduction under section 80IC of the Act. d) In the case of Munjal Showa v. DCIT: 94 TTJ 227 (Del) it has been held that interest received from suppliers on early payment of raw material cost is derived from the business of manufacturing, which is eligible for deduction under section 80I of the Act. Exchange fluctuation Gain (net) - Rs. 2,41,67,060/ Hero MotoCorp Limited Vs. JCIT & DCIT Vs. Hero MotoCorp Ltd. ITA Nos. 1545/Del/2015 and…

DCIT vs. M/S Indus Garments India P. Ltd

Appeal is treated as dismissed

ITA 209/BANG/2013[2009-10]Status: DisposedITAT Bangalore16 Mar 2016AY 2009-10

Bench: Shri B. Ramakotaiah & Shri Narendra Kumar Choudharyassessment Year : 2009-10

For Appellant: Shri S. Praveen, Addl. CIT(DR)For Respondent: Ms. Sheetal, Advocate
Section 12Section 2Section 43Section 43(5)

…Rs.2,32,20,805/- claimed as exchange loss was disallowed by the AO on the ground that it was a speculative loss. The AO relied on the provisions section 43(5) of the Act in this regard apart from the following judicial decisions: i) Munjal Shows Ltd- v. DCIT (94 TTJ 227)(ITAT, Mumbai) (94 TTJ 227)(ITAT, Mumbai) ii) Shree Capital Services Ltd. v. ACIT (111 ITD 498) (Sp1. Bench of ITAT, Kolkata) 3.6 The appellant being an exporter entered into derivative transactions with Standard Chartered Bank to cover the possible foreign exchange fluctuation loss. Though the AO relied on the provisions of section 43(5) of the A…

Majestic Exports, Tiruppur vs. ACIT, Tiruppur

In the result, the appeals of the assessee are partly allowed

ITA 3072/CHNY/2014[2010-2011]Status: DisposedITAT Chennai24 Jul 2015AY 2010-2011

Bench: Shri Chandra Poojari & Shri V. Durga Raoआयकर अपील सं./ I.T.A. Nos.1336 & 3072/Mds/2014 ("नधा"रण वष" / Assessment Years : 2009-2010 & 2010-2011)

For Appellant: Shri. T. Banusekar, C.A ""For Respondent: Shri. Krishnamurthy, IRS, CIT
Section 43Section 43(5)Section 73Section 8

…eparate business as observed by the Assessing Officer because the assessee is not a dealer in foreign exchange’’. 5.1 The ld. Authorised Representative for assessee relied on the order of the Co-Ordinate Bench, Delhi in the case of Munjal Showa Ltd vs. DCIT, 94 TTJ 227, dated 26th June, 2003 wherein it was held that Profit on cancellation of forward contract in foreign currency entered into for safeguarding against loss by fluctuation in foreign currency for purchase of plant and machinery with loan obtained in foreign currency is capital receipt and not speculative profit. 5.2 The ld. Authorised Representative…

Majestic Exports, Tiruppur vs. JCIT, Tiruppur

In the result, the appeals of the assessee are partly allowed

ITA 1336/CHNY/2014[2009-2010]Status: DisposedITAT Chennai24 Jul 2015AY 2009-2010

Bench: Shri Chandra Poojari & Shri V. Durga Raoआयकर अपील सं./ I.T.A. Nos.1336 & 3072/Mds/2014 ("नधा"रण वष" / Assessment Years : 2009-2010 & 2010-2011)

For Appellant: Shri. T. Banusekar, C.A ""For Respondent: Shri. Krishnamurthy, IRS, CIT
Section 43Section 43(5)Section 73Section 8

…eparate business as observed by the Assessing Officer because the assessee is not a dealer in foreign exchange’’. 5.1 The ld. Authorised Representative for assessee relied on the order of the Co-Ordinate Bench, Delhi in the case of Munjal Showa Ltd vs. DCIT, 94 TTJ 227, dated 26th June, 2003 wherein it was held that Profit on cancellation of forward contract in foreign currency entered into for safeguarding against loss by fluctuation in foreign currency for purchase of plant and machinery with loan obtained in foreign currency is capital receipt and not speculative profit. 5.2 The ld. Authorised Representative…

Munjal Showa Ltd. v. DCIT (94 TTJ 227) — Cited in 18 Judgments | BharatTax