Sutlej Cotton Mills Ltd. v. CIT

116 ITR 1Supreme Court of India1979#177 most cited

What is Sutlej Cotton Mills Ltd. v. CIT authority for?

A gain arising from the cancellation of a forward exchange contract entered into for the acquisition of a capital asset constitutes a capital receipt. Income-tax liability for such transactions is determined by the specific provisions of the Income Tax Act, independent of the accounting treatment in the books of account.

409

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2007 to 2026.

Also referred to as

Sutlej Cotton Mills Ltd · 116 ITR 1 · capital receipt · foreign exchange gain · forward contract · capital asset · Section 43A · income tax liability · accounting treatment · capital gains

Sections most often in play

Section 14ASection 37(1)Section 115JBSection 143(3)Section 32Section 143(2)Section 142(1)Section 250
Read the full judgment

Issues it is cited on

section 43aeligible businessbook profitssection 115jsection 115jbrevenue expendituresection 80iamercantile system of accountingamalgamationsection 37(1)section 80isection 43

Judgments citing Sutlej Cotton Mills Ltd. v. CIT

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Income Tax Officer, Ward - 1(1)(2), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1520/BANG/2019[2014-15]Status: DisposedITAT Bangalore27 Jan 2021AY 2014-15

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…mined on the touchstone of provisions contained in the Act (See – Kedarnath Jute Mfg. Co. Ltd. vs. CIT (1971) 82 ITR 363 (SC); Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT (1997) 227 ITR 172/93 Taxman 502 (SC); Sutlej Cotton Mills Ltd. vs. CIT (1979) 116 ITR 1 (SC) and United Commercial Bank vs. CIT (1999) 240 ITR 355/106 Taxman 601 (SC).” 23. The Ld. AR submitted that the CIT(A)’s observation that the Tribunal in assessee’s own case wrongly proceeded to bifurcate and split the expenses incurred by the assessee into Revenue and Capital, is not proper as the entire expenditure was incurred for a specific…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 11(1), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1519/BANG/2019[2013-14]Status: DisposedITAT Bangalore27 Jan 2021AY 2013-14

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…mined on the touchstone of provisions contained in the Act (See – Kedarnath Jute Mfg. Co. Ltd. vs. CIT (1971) 82 ITR 363 (SC); Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT (1997) 227 ITR 172/93 Taxman 502 (SC); Sutlej Cotton Mills Ltd. vs. CIT (1979) 116 ITR 1 (SC) and United Commercial Bank vs. CIT (1999) 240 ITR 355/106 Taxman 601 (SC).” 23. The Ld. AR submitted that the CIT(A)’s observation that the Tribunal in assessee’s own case wrongly proceeded to bifurcate and split the expenses incurred by the assessee into Revenue and Capital, is not proper as the entire expenditure was incurred for a specific…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 11(1), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1518/BANG/2019[2012-13]Status: DisposedITAT Bangalore27 Jan 2021AY 2012-13

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…mined on the touchstone of provisions contained in the Act (See – Kedarnath Jute Mfg. Co. Ltd. vs. CIT (1971) 82 ITR 363 (SC); Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT (1997) 227 ITR 172/93 Taxman 502 (SC); Sutlej Cotton Mills Ltd. vs. CIT (1979) 116 ITR 1 (SC) and United Commercial Bank vs. CIT (1999) 240 ITR 355/106 Taxman 601 (SC).” 23. The Ld. AR submitted that the CIT(A)’s observation that the Tribunal in assessee’s own case wrongly proceeded to bifurcate and split the expenses incurred by the assessee into Revenue and Capital, is not proper as the entire expenditure was incurred for a specific…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 11(1), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1517/BANG/2019[2011-12]Status: DisposedITAT Bangalore27 Jan 2021AY 2011-12

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…mined on the touchstone of provisions contained in the Act (See – Kedarnath Jute Mfg. Co. Ltd. vs. CIT (1971) 82 ITR 363 (SC); Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT (1997) 227 ITR 172/93 Taxman 502 (SC); Sutlej Cotton Mills Ltd. vs. CIT (1979) 116 ITR 1 (SC) and United Commercial Bank vs. CIT (1999) 240 ITR 355/106 Taxman 601 (SC).” 23. The Ld. AR submitted that the CIT(A)’s observation that the Tribunal in assessee’s own case wrongly proceeded to bifurcate and split the expenses incurred by the assessee into Revenue and Capital, is not proper as the entire expenditure was incurred for a specific…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Income Tax Officer, Ward- 1(1)(2), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1516/BANG/2019[2009-10]Status: DisposedITAT Bangalore27 Jan 2021AY 2009-10

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…mined on the touchstone of provisions contained in the Act (See – Kedarnath Jute Mfg. Co. Ltd. vs. CIT (1971) 82 ITR 363 (SC); Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT (1997) 227 ITR 172/93 Taxman 502 (SC); Sutlej Cotton Mills Ltd. vs. CIT (1979) 116 ITR 1 (SC) and United Commercial Bank vs. CIT (1999) 240 ITR 355/106 Taxman 601 (SC).” 23. The Ld. AR submitted that the CIT(A)’s observation that the Tribunal in assessee’s own case wrongly proceeded to bifurcate and split the expenses incurred by the assessee into Revenue and Capital, is not proper as the entire expenditure was incurred for a specific…

M/S. Havells India Ltd., New Delhi vs. ACIT, New Delhi

The appeal of the assessee is partly allowed for statistical purpose

ITA 4695/DEL/2012[2008-09]Status: DisposedITAT Delhi10 Nov 2020AY 2008-09

Bench: Shri Anil Chaturvedi & Ms Suchitra Kamble(Through Video Conferencing) Vs Havells India Ltd. Acit 1, Raj Narian Marg, Ltu Civil Lines New Delhi New Delhi Aaach0351E (Respondent) (Appellant)

Section 251Section 40Section 80I

…ate of exchange was not a trading profit but a capital accretion and, thus, not eligible to tax. The view taken in the above two decisions was reiterated by the Hon’ble Supreme Court while delivering judgment in the case of Sutlej Cotton Mills Limited. v. CIT 116 ITR 1, wherein the following tests was propounded to determine the character of 22 loss/gain arising due to exchange fluctuations. It was similarly held by the Hon’ble Supreme Court in case of CIT vs. Woodward Governor India (P) Ltd. 312 ITR 254 (SC). The Ld. AR further relied upon the decision of Hon’ble Calcutta High Court in the case of Indian Leaf To…

Aesseal India Pvt.Ltd, Pune vs. Income-Tax Officer, Ward - 1(4), Pune

In the result, the appeal in ITA No

ITA 2203/PUN/2017[2014-15]Status: DisposedITAT Pune29 Oct 2020AY 2014-15
For Appellant: Shri Kishor PhadkeFor Respondent: Shri Mahadevan A.M. Krishanan
Section 143(1)Section 143(3)Section 43A

…ing that the loss claimed is notional. The alternative claim of the assessee for capitalization of the loss was also turned down by the Assessing Officer placing reliance on the decision of the Hon’ble Supreme Court in the case of Sullej Cotton Mills vs. CIT, 116 ITR 1. 6. Being aggrieved by the above decision of the Assessing Officer, the assessee preferred an appeal before ld. CIT(A), who vide impugned order dismissed the appeal of the assessee by holding that in the absence of specific provisions in Income Tax Act, 1961, the same cannot be allowed either as depreciation. 7. Being aggrieved by the order of the…

Aesseal India Pvt.Ltd, Pune vs. Income-Tax Officer, Ward - 1(4), Pune

In the result, the appeal in ITA No

ITA 2202/PUN/2017[2012-13]Status: DisposedITAT Pune29 Oct 2020AY 2012-13
For Appellant: Shri Kishor PhadkeFor Respondent: Shri Mahadevan A.M. Krishanan
Section 143(1)Section 143(3)Section 43A

…ing that the loss claimed is notional. The alternative claim of the assessee for capitalization of the loss was also turned down by the Assessing Officer placing reliance on the decision of the Hon’ble Supreme Court in the case of Sullej Cotton Mills vs. CIT, 116 ITR 1. 6. Being aggrieved by the above decision of the Assessing Officer, the assessee preferred an appeal before ld. CIT(A), who vide impugned order dismissed the appeal of the assessee by holding that in the absence of specific provisions in Income Tax Act, 1961, the same cannot be allowed either as depreciation. 7. Being aggrieved by the order of the…

Deputy Commissioner of Income Tax Circle-2(1)(1), Bangalore vs. M/S Coffee Day Global Ltd, Bangalore

In the result, both appeals of the revenue are partly allowed

ITA 816/BANG/2017[2012-13]Status: DisposedITAT Bangalore30 Sept 2020AY 2012-13

Bench: Shri A. K. Garodia & Smt. Beena Pillai

For Appellant: Shree C. Ramesh, C. AFor Respondent: Shree T Roumuan Paite, CIT DR
Section 36

…bunal order from pages 150 to 151 of the case law paper book filed with written submissions dated 24.08.2020. 10.8 We have heard the rival submissions and perused the record. The Supreme Court in the case of Sutlej Cotton Mills Ltd. vs. CIT reported in (1979) 116 ITR 1 held as under: "The law may, therefore, now be taken to be well settled that where profit or loss arises to an assessee of account of appreciation or depreciation in the value of foreign currency held by it, on conversion into another currency, such profit or loss would ordinarily be a trading profit or loss if the foreign currency is held by the a…

Deputy Commissioner of Income Tax Circle-2(1)(1), Bangalore vs. M/S Coffee Day Global Limited, Bangalore

In the result, both appeals of the revenue are partly allowed

ITA 815/BANG/2017[2011-12]Status: DisposedITAT Bangalore30 Sept 2020AY 2011-12

Bench: Shri A. K. Garodia & Smt. Beena Pillai

For Appellant: Shree C. Ramesh, C. AFor Respondent: Shree T Roumuan Paite, CIT DR
Section 36

…bunal order from pages 150 to 151 of the case law paper book filed with written submissions dated 24.08.2020. 10.8 We have heard the rival submissions and perused the record. The Supreme Court in the case of Sutlej Cotton Mills Ltd. vs. CIT reported in (1979) 116 ITR 1 held as under: "The law may, therefore, now be taken to be well settled that where profit or loss arises to an assessee of account of appreciation or depreciation in the value of foreign currency held by it, on conversion into another currency, such profit or loss would ordinarily be a trading profit or loss if the foreign currency is held by the a…

Steria (India) Ltd., Noida vs. Addl. CIT, Spl. Range- 8, New Delhi

In the result ITA number 5745/del/2018 for assessment year 2014 – 15

ITA 5745/DEL/2018[2014-15]Status: DisposedITAT Delhi28 Sept 2020AY 2014-15

Bench: Shri Kuldip Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Sh. Anupam Kant Garg, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…exchange prevailing on that date. Any increase/decrease in the liability, thus revalued, vis-à- vis the original liability is accounted as loss/gain, as the case may be, in that year. (iv) The Supreme Court in the case of Sutlej Cotton Mills Limited v. CIT: 116 ITR 1 propounded the following tests to determine the character of loss/gain arising due to exchange fluctuations: Which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year. “The law may, therefore, now be taken to be well settled that where profi…

M/S Steria Ndia Ltd., Noida vs. Addl CIT, New Delhi

In the result ITA number 5745/del/2018 for assessment year 2014 – 15

ITA 741/DEL/2017[2012-13]Status: DisposedITAT Delhi28 Sept 2020AY 2012-13

Bench: Shri Kuldip Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Sh. Anupam Kant Garg, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…exchange prevailing on that date. Any increase/decrease in the liability, thus revalued, vis-à- vis the original liability is accounted as loss/gain, as the case may be, in that year. (iv) The Supreme Court in the case of Sutlej Cotton Mills Limited v. CIT: 116 ITR 1 propounded the following tests to determine the character of loss/gain arising due to exchange fluctuations: Which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year. “The law may, therefore, now be taken to be well settled that where profi…

Steria India Ltd., Noida vs. Addl.CIT, Speciaql Range-8, New Delhi

In the result ITA number 5745/del/2018 for assessment year 2014 – 15

ITA 3992/DEL/2017[2013-14]Status: DisposedITAT Delhi28 Sept 2020AY 2013-14

Bench: Shri Kuldip Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Sh. Anupam Kant Garg, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…exchange prevailing on that date. Any increase/decrease in the liability, thus revalued, vis-à- vis the original liability is accounted as loss/gain, as the case may be, in that year. (iv) The Supreme Court in the case of Sutlej Cotton Mills Limited v. CIT: 116 ITR 1 propounded the following tests to determine the character of loss/gain arising due to exchange fluctuations: Which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year. “The law may, therefore, now be taken to be well settled that where profi…

Nortel Networks India Pvt. Ltd., New Delhi vs. Addl. CIT, Circle-18(2), New Delhi

In the result, appeal of the assessee is partly allowed with above directions

ITA 5205/DEL/2017[2013-14]Status: DisposedITAT Delhi31 Aug 2020AY 2013-14

Bench: Ms. Sushma Chowla & Shri Prashant Maharishi

For Appellant: Shri Nageshwar Rao, AdvFor Respondent: Ms. Pramita M. Biswas, CIT DR
Section 143Section 271

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI (Through Video Conferencing) BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 5205 /Del/2017 (Assessment Year: 2013-14) Nortel Networks India Pvt. Ltd, Vs. Addl. CIT, G – 41, ground floor Special Range-6, Room NO. West Patel Nagar 352, CR Building, IP Estate, New Delhi New Delhi 110008 PAN: AABCN1424B (Appellant) (Respondent) Assessee by: Shri Nageshwar Rao, Adv Revenue by : Ms. Pramita M. Biswas, CIT DR Date of Hearing 08/07//2020 Date of pronouncement 31/08/2020 ORDER PER PRASHANT MAHARISHI, A. M. 1. Thi…

United Health Group Information Services Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal filed by the assessee is allowed and the appeal filed by the Revenue is partly allowed for statistical purposes

ITA 473/DEL/2016[2011-12]Status: DisposedITAT Delhi25 Aug 2020AY 2011-12

Bench: Shri R.K. Panda & Shri Amit Shuklaassessment Year: 2011-12 Optum Global Solutions (India) Vs Dcit, Private Limited Circle-27(1), (Formerly Known As United Health Cr Building, Group Information Services Pvt. New Delhi. Ltd.), 11Th Floor, Tower A, Dlf Towers Jasola, Jasola District Centre, New Delhi. Pan: Aadca6769Q Assessment Year: 2011-12 Dcit, Vs Optum Global Solutions (India) Circle-27(1), Private Limited Cr Building, (Formerly Known As United Health New Delhi Group Information Services Pvt. Ltd.), 11Th Floor, Tower A, Dlf Towers Jasola, Jasola District Centre, New Delhi. Pan: Aadca6769Q (Appellant) (Respondent) Assessee By : Shri Nageshwar Rao & Shri S. Chakraborty, Advocates Revenue By : Shri Anupam Kant Garg, Cit, Dr Date Of Hearing : 16.06.2020 Date Of Pronouncement : 25.08.2020

For Appellant: Shri Nageshwar Rao &For Respondent: Shri Anupam Kant Garg, CIT, DR
Section 10ASection 115JSection 143(3)Section 144C

…ising out of change in foreign currency rate in ITA No.419/Del/2014 respect of transaction for import or export of goods is nothing, but inherent part of the price of import or the value of export. The Hon'ble Supreme Court in Sutlej Cotton Mills Ltd. VS. CIT 116 ITR 1 (SC) has held that : 'where profit or loss arises to an assessee on account of appreciation or depreciation ITA Nos.4446 & 4447/Del/2007 in the value of foreign currency held by it, on conversion into another currency, such profit or loss would ordinarily be trading profit or loss if the foreign currency is held by the assessee on revenue account o…

DCIT, New Delhi vs. M/S United Health Group Information Services Pvt. Ltd, New Delhi

In the result, the appeal filed by the assessee is allowed and the appeal filed by the Revenue is partly allowed for statistical purposes

ITA 193/DEL/2016[2011-12]Status: DisposedITAT Delhi25 Aug 2020AY 2011-12

Bench: Shri R.K. Panda & Shri Amit Shuklaassessment Year: 2011-12 Optum Global Solutions (India) Vs Dcit, Private Limited Circle-27(1), (Formerly Known As United Health Cr Building, Group Information Services Pvt. New Delhi. Ltd.), 11Th Floor, Tower A, Dlf Towers Jasola, Jasola District Centre, New Delhi. Pan: Aadca6769Q Assessment Year: 2011-12 Dcit, Vs Optum Global Solutions (India) Circle-27(1), Private Limited Cr Building, (Formerly Known As United Health New Delhi Group Information Services Pvt. Ltd.), 11Th Floor, Tower A, Dlf Towers Jasola, Jasola District Centre, New Delhi. Pan: Aadca6769Q (Appellant) (Respondent) Assessee By : Shri Nageshwar Rao & Shri S. Chakraborty, Advocates Revenue By : Shri Anupam Kant Garg, Cit, Dr Date Of Hearing : 16.06.2020 Date Of Pronouncement : 25.08.2020

For Appellant: Shri Nageshwar Rao &For Respondent: Shri Anupam Kant Garg, CIT, DR
Section 10ASection 115JSection 143(3)Section 144C

…ising out of change in foreign currency rate in ITA No.419/Del/2014 respect of transaction for import or export of goods is nothing, but inherent part of the price of import or the value of export. The Hon'ble Supreme Court in Sutlej Cotton Mills Ltd. VS. CIT 116 ITR 1 (SC) has held that : 'where profit or loss arises to an assessee on account of appreciation or depreciation ITA Nos.4446 & 4447/Del/2007 in the value of foreign currency held by it, on conversion into another currency, such profit or loss would ordinarily be trading profit or loss if the foreign currency is held by the assessee on revenue account o…

Gujarat Mineral Development Corporation Ltd., Ahmedabad vs. The ACIT, Circle-2(1)(1), Ahmedabad

In the result, both appeals filed by the assessee are allowed for statistical purposes

ITA 2278/AHD/2018[2015-16]Status: DisposedITAT Ahmedabad28 Jul 2020AY 2015-16

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri S. N. Soparkar, Sr. Advocate & Shri ParinFor Respondent: Shri Vinod Tanwani, Sr.D.R
Section 143(3)Section 14A

…examined on the touchstone of provisions contained in the Act [See – Kedarnath Jute Mfg. Co. Ltd. v. CIT [1971] 82 ITR 363 (SC); Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172/93 Taxman 502 (SC); Sutlej Cotton Mills Ltd. v. CIT [1979] 116 ITR 1 (SC) and United Commercial Bank v. CIT [1992] 240 ITR 355/106 Taxman 601 (SC). 20. At the most, an inference can be drawn that by showing this expenditure in a spread over manner in the books of account, the assessee had initially intended to make such an option. However, it abandoned the same before reaching the crucial stage, inasmuch as, in the…

Gujarat Mineral Development Corporation Ltd., Ahmedabad vs. The ACIT, Circle-2(1)(1), Ahmedabad

In the result, both appeals filed by the assessee are allowed for statistical purposes

ITA 2277/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad28 Jul 2020AY 2014-15

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri S. N. Soparkar, Sr. Advocate & Shri ParinFor Respondent: Shri Vinod Tanwani, Sr.D.R
Section 143(3)Section 14A

…examined on the touchstone of provisions contained in the Act [See – Kedarnath Jute Mfg. Co. Ltd. v. CIT [1971] 82 ITR 363 (SC); Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172/93 Taxman 502 (SC); Sutlej Cotton Mills Ltd. v. CIT [1979] 116 ITR 1 (SC) and United Commercial Bank v. CIT [1992] 240 ITR 355/106 Taxman 601 (SC). 20. At the most, an inference can be drawn that by showing this expenditure in a spread over manner in the books of account, the assessee had initially intended to make such an option. However, it abandoned the same before reaching the crucial stage, inasmuch as, in the…

M/S Tanglin Developement Ltd, Bangalore vs. The Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore

In the result, the appeal of the assessee is partly allowed

ITA 1527/BANG/2018[2013-14]Status: DisposedITAT Bangalore29 Jun 2020AY 2013-14

Bench: Shri N.V.Vasudevan & Shri B.R.Baskaranita No.1527(Bang)/2018 (Assessment Year : 2013-14) M/S Tanglin Developments Ltd., No.23/2, Coffee Day Square, Vittal Mallya Road, Bangalore-560 001 Panno.Aabct0356N Appellant Vs The Deputy Commissioner Of Income Tax, Circle-1(3), Cr Buildings, Queen’S Road, Bangalore Respondent Appellant By :Shri C. Ramesh, Ca Revenue By : Shri Muzaffar Hussain, Cit

For Appellant: Shri C. Ramesh, CAFor Respondent: Shri Muzaffar Hussain, CIT
Section 115JSection 143(3)Section 14ASection 263

…ccount of repayment of loans. Hence, the provisions of sec.43A of the IT Act itself are not applicable to the facts of the present case. 9. The ld. Pr.CIT relied on the decision rendered by the Hon’ble Supreme Court in the case of Sutlej Cotton Mills Vs CIT (116 ITR 1), wherein it was held as under:- “…..the law may therefore, now be taken to be well settled that where profit or loss arises to an assessee on account of appreciation or depreciation in the value of foreign currency held by him, on conversion into another currency, such profit or loss would ordinarily be a trading profit or loss if the foreign curr…

DCIT, New Delhi vs. M/S. Gulshan Chemicals Ltd., New Delhi

In the result, the appeals of the revenue are dismissed

ITA 1524/DEL/2015[2011-12]Status: DisposedITAT Delhi21 May 2020AY 2011-12

Bench: Ms. Sushma Chowladr. B. R. R. Kumarita No. 1523/Del/2015 :Asstt. Year : 2011-12 Ita No. 1524/Del/2015 :Asstt. Year : 2011-12 Dcit, Vs M/S Gulshan Chemicals Ltd., Circle-10(2), E-12, Greater Kailash-I, New Delhi New Delhi-110048 (Appellant) (Respondent) Pan No. Aaacg4002H

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. S. N. Meena, Sr. DR
Section 133(6)Section 154Section 271(1)(c)

…n the basis of tire material available on record, surrounding circumstances, human conduct, preponderance of probability and nature of incriminating information / evidence. (iii) The Hon'ble Supreme Court held in the case of Sutlej Cotton Mills Ltd. Vs. CIT, 116 ITR 1, that the way in which the entries are made by an assessee in his books of accounts is not determinative of the question whether the assessee has earned any profit or suffered any loss, but what is necessary to be considered is the true nature of the transactions. Perusal of above and other judicial decision so that the assessee has been avoiding…