Oil & Natural Gas Corpn. Ltd. v. Dy. CIT

83 ITD 151Income Tax Appellate Tribunal2002#4071 most cited

What is Oil & Natural Gas Corpn. Ltd. v. Dy. CIT authority for?

Fluctuations in foreign exchange currency, accounted for at the end of the accounting year using a consistent accounting system, are not notional losses and are therefore deductible. The loss accrues at the time of valuation, not solely upon remittance or repayment.

29

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2023.

Also referred to as

Oil & Natural Gas Corpn. Ltd. v. Dy. CIT · 83 ITD 151 · section 43(5) · foreign exchange loss · notional loss · marked-to-market loss · accounting system · accrual of loss · AS-2

Judgments citing Oil & Natural Gas Corpn. Ltd. v. Dy. CIT

Lenovo (India) Private Limited, Bangalore vs. Income Tax Officer Ward- 4(1)(1), Bangalore

In the result, the appeal of the assessee is partly allowed for above terms

ITA 281/BANG/2021[2016-17]Status: DisposedITAT Bangalore24 Mar 2023AY 2016-17

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

For Appellant: Shri Padam Chand Kincha, C.AFor Respondent: Shri Sankar K Ganeshan, CIT (D.R)

Section 143(3)Section 144C(13)Section 144C(5)Section 92CSection 92C(3)

…11 Taxman 128 (Cal HC) iv. Acer India Private Limited (ITA 473/ Bang/ 2016) (Bang-ITAT) v. Amrit Steels Ltd. [2001] 79 ITD 498 (Delhi ITAT) vi. Dow Agrosciences India (P.) Ltd. [2017] 88 taxmann.com 676 (Mumbai ITAT) vii. Oil & Natural Gas Corpn. Ltd. [2002] 83 ITD 151 (Delhi ITAT) The issue no more res integra and is held in favour of the Appellant. The entire premise of the learned AO to frame the addition i.e. notionalmarked-to-market loss on account of fair value of forex derivatives/forward contract is applicability of section 43(5) of the Act. In this regard, the Appellant wishes to bring your Honor’s atte…

M/S. Odisha Power Generation Corporation Limited, Bhubaneswar vs. DCIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 131/CTK/2019[2014-15]Status: DisposedITAT Cuttack12 Sept 2022AY 2014-15

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…d expenses. The learned AR submitted that the assessee has submitted all the relevant details in respect of these expenses. These were the short provision for expenses and reliance was placed on the decision of Oil & Natural Gas Corpn. Ltd. vs. Dy. CIT [2002] 83 ITD 151 (Delhi) (SB). It was also submitted that these expenses related to prior period is actually quantified/crystallized in the year relevant to P a g e 12 | 52 OPGC assessment year 2006-07, therefore, it is deductible expenses. He also relied on the unreported decision of Hon'ble Delhi High Court in the case of CIT vs. Vishnu Industrial Gases P. Ltd…

M/S. Odisha Power Generation Corporation Limited, Bhubaneswar vs. DCIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 130/CTK/2019[2013-14]Status: DisposedITAT Cuttack12 Sept 2022AY 2013-14

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…d expenses. The learned AR submitted that the assessee has submitted all the relevant details in respect of these expenses. These were the short provision for expenses and reliance was placed on the decision of Oil & Natural Gas Corpn. Ltd. vs. Dy. CIT [2002] 83 ITD 151 (Delhi) (SB). It was also submitted that these expenses related to prior period is actually quantified/crystallized in the year relevant to P a g e 12 | 52 OPGC assessment year 2006-07, therefore, it is deductible expenses. He also relied on the unreported decision of Hon'ble Delhi High Court in the case of CIT vs. Vishnu Industrial Gases P. Ltd…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 64/CTK/2017[2009-10]Status: DisposedITAT Cuttack12 Sept 2022AY 2009-10

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…d expenses. The learned AR submitted that the assessee has submitted all the relevant details in respect of these expenses. These were the short provision for expenses and reliance was placed on the decision of Oil & Natural Gas Corpn. Ltd. vs. Dy. CIT [2002] 83 ITD 151 (Delhi) (SB). It was also submitted that these expenses related to prior period is actually quantified/crystallized in the year relevant to P a g e 12 | 52 OPGC assessment year 2006-07, therefore, it is deductible expenses. He also relied on the unreported decision of Hon'ble Delhi High Court in the case of CIT vs. Vishnu Industrial Gases P. Ltd…

ACIT, Corporate Circle-1(2), Bhubaneswar vs. M/S. Orissa Power Generation Corporation Ltd., Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 288/CTK/2016[2011-12]Status: DisposedITAT Cuttack12 Sept 2022AY 2011-12

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…d expenses. The learned AR submitted that the assessee has submitted all the relevant details in respect of these expenses. These were the short provision for expenses and reliance was placed on the decision of Oil & Natural Gas Corpn. Ltd. vs. Dy. CIT [2002] 83 ITD 151 (Delhi) (SB). It was also submitted that these expenses related to prior period is actually quantified/crystallized in the year relevant to P a g e 12 | 52 OPGC assessment year 2006-07, therefore, it is deductible expenses. He also relied on the unreported decision of Hon'ble Delhi High Court in the case of CIT vs. Vishnu Industrial Gases P. Ltd…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. DCIT, Circle-1(1), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 267/CTK/2016[2011-12]Status: DisposedITAT Cuttack12 Sept 2022AY 2011-12

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…d expenses. The learned AR submitted that the assessee has submitted all the relevant details in respect of these expenses. These were the short provision for expenses and reliance was placed on the decision of Oil & Natural Gas Corpn. Ltd. vs. Dy. CIT [2002] 83 ITD 151 (Delhi) (SB). It was also submitted that these expenses related to prior period is actually quantified/crystallized in the year relevant to P a g e 12 | 52 OPGC assessment year 2006-07, therefore, it is deductible expenses. He also relied on the unreported decision of Hon'ble Delhi High Court in the case of CIT vs. Vishnu Industrial Gases P. Ltd…

ACIT, Corporate Circle-1(2), Bhubaneswar vs. M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 175/CTK/2016[2012-13]Status: DisposedITAT Cuttack12 Sept 2022AY 2012-13

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…d expenses. The learned AR submitted that the assessee has submitted all the relevant details in respect of these expenses. These were the short provision for expenses and reliance was placed on the decision of Oil & Natural Gas Corpn. Ltd. vs. Dy. CIT [2002] 83 ITD 151 (Delhi) (SB). It was also submitted that these expenses related to prior period is actually quantified/crystallized in the year relevant to P a g e 12 | 52 OPGC assessment year 2006-07, therefore, it is deductible expenses. He also relied on the unreported decision of Hon'ble Delhi High Court in the case of CIT vs. Vishnu Industrial Gases P. Ltd…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 173/CTK/2016[2012-13]Status: DisposedITAT Cuttack12 Sept 2022AY 2012-13

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…d expenses. The learned AR submitted that the assessee has submitted all the relevant details in respect of these expenses. These were the short provision for expenses and reliance was placed on the decision of Oil & Natural Gas Corpn. Ltd. vs. Dy. CIT [2002] 83 ITD 151 (Delhi) (SB). It was also submitted that these expenses related to prior period is actually quantified/crystallized in the year relevant to P a g e 12 | 52 OPGC assessment year 2006-07, therefore, it is deductible expenses. He also relied on the unreported decision of Hon'ble Delhi High Court in the case of CIT vs. Vishnu Industrial Gases P. Ltd…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. DCIT, Circle-1(1), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 84/CTK/2014[2010-11]Status: DisposedITAT Cuttack12 Sept 2022AY 2010-11

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…d expenses. The learned AR submitted that the assessee has submitted all the relevant details in respect of these expenses. These were the short provision for expenses and reliance was placed on the decision of Oil & Natural Gas Corpn. Ltd. vs. Dy. CIT [2002] 83 ITD 151 (Delhi) (SB). It was also submitted that these expenses related to prior period is actually quantified/crystallized in the year relevant to P a g e 12 | 52 OPGC assessment year 2006-07, therefore, it is deductible expenses. He also relied on the unreported decision of Hon'ble Delhi High Court in the case of CIT vs. Vishnu Industrial Gases P. Ltd…

DCIT, Bhubaneswar vs. Orissa Power Generation Corporation Ltd, Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 114/CTK/2014[2010-11]Status: DisposedITAT Cuttack12 Sept 2022AY 2010-11

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…d expenses. The learned AR submitted that the assessee has submitted all the relevant details in respect of these expenses. These were the short provision for expenses and reliance was placed on the decision of Oil & Natural Gas Corpn. Ltd. vs. Dy. CIT [2002] 83 ITD 151 (Delhi) (SB). It was also submitted that these expenses related to prior period is actually quantified/crystallized in the year relevant to P a g e 12 | 52 OPGC assessment year 2006-07, therefore, it is deductible expenses. He also relied on the unreported decision of Hon'ble Delhi High Court in the case of CIT vs. Vishnu Industrial Gases P. Ltd…

Dy CIT 10 (3)(1), Mumbai vs. M/S Olivia Impex Pvt Ltd., Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 8046/MUM/2019[2011-12]Status: DisposedITAT Mumbai07 Mar 2022AY 2011-12

For Appellant: Sri.R A Dhyani. Sr. DRFor Respondent: Sri.Gunjan Kakkad.AR

Section 115JSection 143(1)Section 143(2)Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER DCIT – 10(3)(1) Vs. M/s. Olivia Impex Pvt Room No. 217, Ltd, 1st Floor, Aayakar 8th Floor, Premier Bhavan, MK Road, House, Plot No. 38, Mumbai – 400020. MIDC, Andheri East, Mumbai – 400093. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACO4346A Appellant .. Respondent Appellant by : Sri.R A Dhyani. Sr. DR Respondent by : Sri.Gunjan Kakkad.AR Date of Hearing 23.02.2022 Date of Pronouncement 07.03.2022 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: The revenue has filed the…

M/S.Herbalife International India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, assessee’s appeal is partly allowed

ITA 1723/BANG/2016[2002-03]Status: DisposedITAT Bangalore04 Feb 2022AY 2002-03

Bench: Shri N. V. Vasudevan & Shri B R Baskaranassessment Year : 2002-03

For Appellant: Shri Padam Chand Khincha, C.AFor Respondent: Shri Sumer Singh Meena, CIT(DR OSD)

Section 143(1)Section 143(2)Section 143(3)Section 271(1)(c)

…xchange should be taken only at the time of remittance and only then there can be an accrual. This issue has been considered by the Special Bench of the Tribunal in the case of Oil & Natural Gas Corporation Ltd. v. Dy. CIT (2002) 77 TTJ (Del)(SB) 387 : (2002) 83 ITD 151 (Del)(SB). The said Bench has held that in the case where an assessee consistently follows a system of accounting by which the fluctuation in foreign exchange currency is duly accounted for at the end of the accounting year, the same cannot be said to be notional and it cannot be said that the assessee could claim the fluctuation loss or gain only…

Asst CIT 19(1), Mumbai vs. Dharamchand Paraschand Exports, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 6743/MUM/2016[2012-13]Status: DisposedITAT Mumbai27 Aug 2018AY 2012-13

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm Assistant Commissioner Of Vs. M/S. Dharamchand Paraschand Income Tax- 19(1) Exports, Room No.203, 2Nd Floor Ce/3011-3012, Bharat Matru Mandir, Tardeo Road Diamond Bourse, Bkc Mumbai – 400 007 Bandra (E), Mumbai – 400 051 Pan/Gir No. Aaafd1078M Appellant) .. Respondent)

…G (86 ITD 431) has held that income / loss on revaluation of forward foreign exchange contracts is not notional in nature and, therefore, needs to be considered in preparing computation of total income of the assessee. Delhi Special Bench in the case of ONGC (83 ITD 151) inter alia, observed that "Before concluding, we would like to point out that the assessee's claim for loss arising as a result of fluctuation in foreign exchange rates on the closing day of the year has been disallowed by the AO, inter alia, on the ground that this liability was a contingent liability and the loss was a notional one. The main in…

ACIT, New Delhi vs. M/S. Timex Watches Ltd., New Delhi

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

ITA 1652/DEL/2012[2003-04]Status: DisposedITAT Delhi05 May 2017AY 2003-04

Bench: Sh. N. K. Saini, Am & Ms. Suchitra Kamble, Jm Ita No. 1652/Del/2012 : Asstt. Year : 2003-04 Acit, Vs M/S Timex Watches Ltd., Circle-16(1), 117, Ground Floor, World Trade New Delhi Centre, Babar Road, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaact0773C Assessee By : Sh. K. M. Gupta, Adv. & Sh. Gautam Jain, Ca Revenue By : Sh. B. Ramanjaneyulu, Sr. Dr Date Of Hearing : 01.05.2017 Date Of Pronouncement : 05.05.2017 Order Per N. K. Saini, Am: This Is An Appeal By The Department Against The Order Dated 31.01.2012 Of Ld. Cit(A)-Xx, New Delhi.

For Appellant: Sh. K. M. Gupta, Adv. &For Respondent: Sh. B. Ramanjaneyulu, Sr. DR

Section 37(1)Section 92C

…icate as well as the statement of loss of foreign exchange." 15. During the course of argument Ld. DR supported the order of the Assessing Officer. On the other hand, Ld. AR relied on the ratio laid down by the special Bench ITAT in the case of ONGC Vs. DCIT, 83 ITD 151 Delhi where it was held that such liability is not notional but accrued. It was also submitted by the Ld. AR that in the immediately succeeding year, while valuing unpaid liability in the year on the exchange rate prevailing at that date a gain of Rs. 43 lakhs accrued to the assessee and the 5 Timex Watches Ltd. same was offered to tax and actual…

ITO 16(2)(4), Mumbai vs. Surya Gems, Mumbai

The appeal of the Revenue is dismissed

ITA 292/MUM/2014[2009-10]Status: DisposedITAT Mumbai08 Mar 2017AY 2009-10

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2009-10 Income Tax Officer-16(2)(4), M/S Surya Gems, बनाम/ 02Nd Floor, Matru Mandir, Flat No.4, 02Nd Floor, Tardeo Road, Bhaveshwar Sgar Patel Vs. Mumbai-400007 Compound 20 Napean Sea Road, Mumbai-400020 (याजस्व /Revenue) (यनधाारयती /Assessee) P.A. No. Aakfs6513Q याजस्व की ओर से / Revenue By Shri B.S. Bist-Dr यनधाारयती की ओर से / Assessee By None ुनवाई की तायीख / Date Of Hearing : 14/02/2017 आदेश की तायीख /Date Of Order: 08/03/2017

…the Hon‘ble Supreme Court in the case of United Commercial Bank v CIT,240 ITR 355 and also on following decisions:- 1. Bank of Tokyo v IAC, 13 ITD 32 2. State Bank of Mysore v CIT, 114 ITR 704 (Kerala) 3. CIT v. Canara Bank, 63 ITR 328 (sc) 4. ONGC v DCIT, 83 ITD 151 (Delhi) Ld CIT (A) allowed the assessee‘s appeal, inter alia, observing that the assessee was offering profits resulting from such revaluation as and when they so arise and the AO had never objected to the profits which was shown on revaluation of outstanding foreign exchange forward contracts. In this regard, ld CIT (A) relied on the decision of…

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

…vertible Notes in question were obtained for acquiring current assets/capital assets. In our opinion, this is to be examined by the ld. Assessing Officer in the light of the order of the Special Bench in the case of Oil & Natural Gas Corporation Ltd vs. DCIT 83 ITD 151 (Del)(SP). According this issue is remitted back to the file of the ld. Assessing Officer for fresh consideration. 11. The fourth ground raised by the Revenue is that ld. Commissioner of Income Tax (Appeals) erred in directing the ld. Assessing Officer to allow the depreciation @60% on the UPS. 11.1 After hearing both the sides, we are of the…

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

…vertible Notes in question were obtained for acquiring current assets/capital assets. In our opinion, this is to be examined by the ld. Assessing Officer in the light of the order of the Special Bench in the case of Oil & Natural Gas Corporation Ltd vs. DCIT 83 ITD 151 (Del)(SP). According this issue is remitted back to the file of the ld. Assessing Officer for fresh consideration. 11. The fourth ground raised by the Revenue is that ld. Commissioner of Income Tax (Appeals) erred in directing the ld. Assessing Officer to allow the depreciation @60% on the UPS. 11.1 After hearing both the sides, we are of the…

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

…vertible Notes in question were obtained for acquiring current assets/capital assets. In our opinion, this is to be examined by the ld. Assessing Officer in the light of the order of the Special Bench in the case of Oil & Natural Gas Corporation Ltd vs. DCIT 83 ITD 151 (Del)(SP). According this issue is remitted back to the file of the ld. Assessing Officer for fresh consideration. 11. The fourth ground raised by the Revenue is that ld. Commissioner of Income Tax (Appeals) erred in directing the ld. Assessing Officer to allow the depreciation @60% on the UPS. 11.1 After hearing both the sides, we are of the…

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)

…of foreign currency in relation to Indian currency, has already taken place in the current year. Therefore, the loss incurred by the assessee is a fait accompli and not a notional one. In fact the special bench of the ITAT, Delhi in the case of ONGC Vs. DCIT 83 ITD 151 has held that the loss ( or gain) arising as a result of fluctuation in foreign exchange rate on the closing day of the year is a loss incurred by ( or gain accruing to) the assessee and is not a notional loss ( or gain). It may also be noted here that as per the accounting standard-11, which is mandatory for companies-exchange differences arising…

DCIT, New Delhi vs. M/S Ericsson India Pvt. Ltd., New Delhi

In the result, appeal filed by the Revenue stands dismissed

ITA 1927/DEL/2011[2005-06]Status: DisposedITAT Delhi12 Sept 2016AY 2005-06

Bench: Shri N. K. Saini & Smt. Beena A. Pillai

For Appellant: Shri Kanchun Kaushal, CAFor Respondent: Shri Neeraj Kumar, Sr. DR

Section 115JSection 37(1)Section 41(1)Section 92C

…accrued liability. Such claim of the assessee was disallowed by the AO on the ground that expenditure had not accrued during the current financial year. The CIT (A) has deleted the disallowance following the decision of Special Bench Delhi in the case of ONGC 83 ITD 151. 24. It was pointed out by Ld. AR that the issue is now covered in favour of the assessee by the decision of Hon'ble Delhi High Court in the case of CIT vs. Woodward Governor (I) Pvt. Ltd. 294 I 45 wherein it has been held at increase in liability in the revenue account as a result of the fluctuation in the rate of foreign exchange is not notional…

Oil & Natural Gas Corpn. Ltd. v. Dy. CIT (83 ITD 151) — Cited in 29 Judgments | BharatTax