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 367,164 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

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

In the result, the appeals of the revenue are dismissed

ITA 1523/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…

DCIT, New Delhi vs. M/S. Asahi India Glass Ltd., New Delhi

Accordingly, the ground no. 1 raised by the revenue is dismissed

ITA 2501/DEL/2014[2008-09]Status: DisposedITAT Delhi14 May 2020AY 2008-09

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Sandeep Sapra, AdvocateFor Respondent: Ms. Shashi Kajle, Senior DR
Section 115JSection 14ASection 43A

…bunal in the case of DCIT vs. Bank of Bahrain & Kuwait 132 TTJ 505 decided the identical issue by returning following findings :- “56. The controversy stands now resolved in view of the decision of the Supreme Court in the case of Sutlej Cotton Mills Ltd., 116 ITR 1 (SC), wherein, it has been held that fluctuation on account of foreign exchange rate is an allowable deduction and is not capital in nature. The observation of the Hon’ble Supreme Court is 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…

M/S. Asahi India Glass Limited, New Delhi vs. DCIT, New Delhi

Accordingly, the ground no. 1 raised by the revenue is dismissed

ITA 1638/DEL/2014[2008-09]Status: DisposedITAT Delhi14 May 2020AY 2008-09

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Sandeep Sapra, AdvocateFor Respondent: Ms. Shashi Kajle, Senior DR
Section 115JSection 14ASection 43A

…bunal in the case of DCIT vs. Bank of Bahrain & Kuwait 132 TTJ 505 decided the identical issue by returning following findings :- “56. The controversy stands now resolved in view of the decision of the Supreme Court in the case of Sutlej Cotton Mills Ltd., 116 ITR 1 (SC), wherein, it has been held that fluctuation on account of foreign exchange rate is an allowable deduction and is not capital in nature. The observation of the Hon’ble Supreme Court is 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…

M/S Fastway Transmission (P) Ltd., Chandigarh vs. DCIT, CC-II, Chandigarh

In the result the captioned appeals of the assessee are

ITA 140/CHANDI/2019[2015-16]Status: DisposedITAT Chandigarh28 Apr 2020AY 2015-16

Bench: Shri N.K. Saini & Shri Sanjay Gargआयकर अपील सं./ Ita No.547/Chd/2017 "नधा"रण वष" / Assessment Year : 2013-14

For Appellant: Shri Ashwani Kumar, CAFor Respondent: Shri Chandrajit Singh, CIT (DR) on 4.12.2019
Section 250(6)

…ns of the Income Tax Act, 1961, and the Accounting Standards are not relevant for the same. Reliance in this regard was placed on the decision of the apex court in Kedarnath Jute Manufacturing Co. ltd. vs CIT (1971) 83 ITR 363; Sutlej Cotton Mills Ltd. Vs CIT 116 ITR 1 and further upon the CBDT Circular No.2 of 2001 dated 9.2.2001 stating that the Accounting Standards on leases will have no implication on the allowance of depreciation on asset under the provisions of Income Tax Act. Reliance was further placed on notification issued by the CBDT dated 9.1.2015 and further dated 29.9.2016 pointing out therefrom tha…

M/S Fastway Transmission (P) Ltd., Chandigarh vs. DCIT, CC-II, Chandigarh

In the result the captioned appeals of the assessee are

ITA 139/CHANDI/2019[2012-13]Status: DisposedITAT Chandigarh28 Apr 2020AY 2012-13

Bench: Shri N.K. Saini & Shri Sanjay Gargआयकर अपील सं./ Ita No.547/Chd/2017 "नधा"रण वष" / Assessment Year : 2013-14

For Appellant: Shri Ashwani Kumar, CAFor Respondent: Shri Chandrajit Singh, CIT (DR) on 4.12.2019
Section 250(6)

…ns of the Income Tax Act, 1961, and the Accounting Standards are not relevant for the same. Reliance in this regard was placed on the decision of the apex court in Kedarnath Jute Manufacturing Co. ltd. vs CIT (1971) 83 ITR 363; Sutlej Cotton Mills Ltd. Vs CIT 116 ITR 1 and further upon the CBDT Circular No.2 of 2001 dated 9.2.2001 stating that the Accounting Standards on leases will have no implication on the allowance of depreciation on asset under the provisions of Income Tax Act. Reliance was further placed on notification issued by the CBDT dated 9.1.2015 and further dated 29.9.2016 pointing out therefrom tha…

M/S Fastway Transmission (P) Ltd., Chandigarh vs. ACIT, Chandigarh

In the result the captioned appeals of the assessee are

ITA 547/CHANDI/2017[2013-14]Status: DisposedITAT Chandigarh28 Apr 2020AY 2013-14

Bench: Shri N.K. Saini & Shri Sanjay Gargआयकर अपील सं./ Ita No.547/Chd/2017 "नधा"रण वष" / Assessment Year : 2013-14

For Appellant: Shri Ashwani Kumar, CAFor Respondent: Shri Chandrajit Singh, CIT (DR) on 4.12.2019
Section 250(6)

…ns of the Income Tax Act, 1961, and the Accounting Standards are not relevant for the same. Reliance in this regard was placed on the decision of the apex court in Kedarnath Jute Manufacturing Co. ltd. vs CIT (1971) 83 ITR 363; Sutlej Cotton Mills Ltd. Vs CIT 116 ITR 1 and further upon the CBDT Circular No.2 of 2001 dated 9.2.2001 stating that the Accounting Standards on leases will have no implication on the allowance of depreciation on asset under the provisions of Income Tax Act. Reliance was further placed on notification issued by the CBDT dated 9.1.2015 and further dated 29.9.2016 pointing out therefrom tha…

Hind Offshore P.Ltd, Mumbai vs. DCIT 5(1)(2), Mumbai

In the result, the appeal is partly allowed

ITA 3408/MUM/2016[2009-10]Status: DisposedITAT Mumbai16 Mar 2020AY 2009-10

Bench: Shri Amarjit Singh () & Shri N.K. Pradhan () Assessment Year: 2009-10

For Appellant: Mr. Amar Gahlot &For Respondent: Mrs. Jothilakshmi Nayak, Sr. DR
Section 115VSection 142(1)Section 143(3)Section 148

…ther expenditure which might be directly connected with the subsidy in the reassessment proceedings though the assessee could not reagitate any other claim which was already considered in the assessment proceedings.” In Sutlej Cotton Mills Ltd. vs. CIT (1979) 116 ITR 1 (SC), it is held that where profit or loss arises to an assessee on account of appreciation or depreciation in value of foreign currency held by him, on conversion into another currency, such profit or loss would ordinarily be trading profit or loss if foreign currency is held by the assessee on revenue account or as a trading asset or as part of c…

M/S. Rajshree Builder & Promoters Pvt. Ltd., New Delhi vs. ITO, New Delhi

The appeal of the assessee is partly allowed for statistical purposes

ITA 679/DEL/2017[2011-12]Status: DisposedITAT Delhi28 Feb 2020AY 2011-12

Bench: Shri Amit Shukla & Shri O.P. Kant

Section 143(2)Section 143(3)Section 234ASection 250(6)Section 41(1)

…8 (Delhi – Trib.); 5. CIT Vs. ICC India P. ltd., ITA No. 396/2012 (Dated: 20th November, 2012) (Delh-HC) 6. Logitronics (P.) Ltd. Vs. Commissioner of Income Tax, [2011] 197 TAXMAN 394 (Delhi); 7. Sutlej Cotton Mills Ltd. Vs. Commissioner of Income Tax, [1979] 116 ITR 1 (SC); 8. Tuticorin Alkali Chemicals & Fertilizers Ltd. Vs. Commissioner of Income Tax, [1997] 93 Taxman 502 (SC) 6.11 On the other hand, learned DR relied on the order of the lower authorities and submitted that even during the appellate proceedings, the assessee has failed to file any confirmation from 9 ITA No. 679/Del./2017 M/s. Omax to substa…

DCIT, Ncc - 2 (1), Chennai vs. Shri Sailendra Kumar Kethineni, Chennai

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

ITA 2263/CHNY/2019[2012-13]Status: DisposedITAT Chennai24 Feb 2020AY 2012-13

Bench: Shri Inturi Rama Rao & Shri Duvvuru R.L. Reddyआयकर अपील सं./I.T.A. No. 2263/Chny/2019 िनधा"रण वष"/Assessment Year: 2012-13 & C.O. No. 104/Chny/2019 [In I.T.A. No. 2263/Chny/2019] The Deputy Commissioner Of Shri Sailendra Kumar Kethineni, Income Tax Vs. No. 61, Greenways Road, R.A. Puram, Non Corporate Circle 2(1), Chennai 600 028. Chennai 600 034. [Pan:Aafpk8983P] (अपीलाथ" /Appellant) (Respondent/Cross Objector) अपीलाथ" की ओर से / Appellant By : Shri Abani Kanta Nayak, Cit ""थ" की ओर से/Respondent By : Shri M. Karunakaran, Advocate सुनवाई की तारीख/ Date Of Hearing : 18.02.2020 घोषणा की तारीख /Date Of Pronouncement : 24.02.2020 आदेश /O R D E R Per Duvvuru Rl Reddy: The Appeal Filed By The Revenue Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 2, Chennai Dated 10.04.2019 Relevant To The Assessment Year 2012-13. The Effective Grounds Raised By The Revenue Are That The Ld. Cit(A) Has Erred In Deleting The Addition Made In Respect Of Employees Contribution Towards Pf/Esi & Treating The Sale Of Land In Sholinganallur As Capital Asset On The Basis Of Book Entry Without Appreciating That Book Entries Are Not Determinative Of Income Of Assessee.

For Appellant: Shri Abani Kanta Nayak, CITFor Respondent: Shri M. Karunakaran, Advocate
Section 139(1)Section 143(3)Section 148Section 43B

…sets by treating one sale as a capital gain and another as business income. It was further submission that mere entries in the books are not determinative of income of the assessee in view of the decisions in the case of Sutlej Cotton Mills Ltd. v. CIT (1979) 116 ITR 1(SC) & Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT 227 ITR 172 (SC). We find force in the arguments of the ld. DR. When the assessee as admitted another property at Sholinganallur, which was included in the wealth tax return for the assessment year 2012-13 as stock-in-trade, the ld. CIT(A) has not given any justification to treat one prop…

Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore vs. M/S Coffeeday Global Limited, Bangalore

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

ITA 3041/BANG/2018[2014-15]Status: DisposedITAT Bangalore24 Feb 2020AY 2014-15

Bench: S/Shri Chandra Poojari, Am & Smt. Beena Pillai, Jm Ita Nos. 3040 & 3041/Bang/2018 Assessment Years: 2013-14 & 2014-15 The Deputy Commissioner Of Vs. M/S. Coffee Day Global Limited, Income-Tax, Central Circle-1(3), No.23/2, Coffeeday Square, 3Rd Floor, C.R. Building, Vittal Mallya Road, Queen’S Road, Bengaluru-560 001. Bengaluru-560 001. [Pan: Aabca 5291P]

Section 14ASection 32(1)(iia)Section 43A

…Thus, the Ld. AR requested the Tribunal to consider the submissions above. I.T.A. Nos.3040 & 3041/Bang/2018 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 Central Circle-1(3), Bangalore vs. M/S Coffeeday Global Limited, Bangalore

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

ITA 3040/BANG/2018[2013-14]Status: DisposedITAT Bangalore24 Feb 2020AY 2013-14

Bench: S/Shri Chandra Poojari, Am & Smt. Beena Pillai, Jm Ita Nos. 3040 & 3041/Bang/2018 Assessment Years: 2013-14 & 2014-15 The Deputy Commissioner Of Vs. M/S. Coffee Day Global Limited, Income-Tax, Central Circle-1(3), No.23/2, Coffeeday Square, 3Rd Floor, C.R. Building, Vittal Mallya Road, Queen’S Road, Bengaluru-560 001. Bengaluru-560 001. [Pan: Aabca 5291P]

Section 14ASection 32(1)(iia)Section 43A

…Thus, the Ld. AR requested the Tribunal to consider the submissions above. I.T.A. Nos.3040 & 3041/Bang/2018 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…

DCIT Ltu 2, Mumbai vs. Tata Motors Ltd, Mumbai

In the result, appeal filed by the revenue for assessment year 2007-08

ITA 4219/MUM/2018[2007-08]Status: DisposedITAT Mumbai18 Feb 2020AY 2007-08

Bench: Shri M. Balaganesh (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2007-08 The Dcit (Ltu)-2, M/S Tata Motors Ltd., World Trade Centre, Bombay House, 24, Homi Mody Centre No. 1, 29Th Floor, Street, Hutatma Chowk, Cuffe Parade, Vs. Mumbai - 400001 Mumbai - 400005 Pan : Aaact2727Q (Appellant) (Respondent) Revenue By : Shri R. Manjunatha Swamy (Cit) Assessee By : Shri Rajan Vora & Nikhil Tiwari (Ars)

For Appellant: Shri Rajan Vora & Nikhil Tiwari (ARs)For Respondent: Shri R. Manjunatha Swamy (CIT)
Section 115JSection 143Section 143(3)Section 154Section 263

…sing on account of foreign exchange fluctuation held for capital purpose is settled in favour of the appellant in its own case by the Hon’ble Apex Court which was also followed further by the Hon’ble Apex Court in the case of Sutlej Cotton Mills Ltd. vs. CIT (116 ITR 1) (SC). The relevant portion of the decision of Apex Court in Sutlej Cotton (supra) is reproduced 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 it, on conversion into another currency such profit…

DCIT, Gurgaon vs. M/S. Plant Edu. (P) Ltd., Gurgaon

ITA 3702/DEL/2015[2009-10]Status: DisposedITAT Delhi31 Jan 2020AY 2009-10

Bench: Shri Kuldip Singh & Dr. B.R.R. Kumar

For Appellant: Shri Sanjay Sood, CAFor Respondent: Shri Saras Kumar, Senior DR
Section 145(3)Section 40A(2)(b)

…assessment order dated 11.05.2016, available at pages 57 to 59 of the paper book, accepted the claim of the assessee qua Project EDEXCEL expenses, thus the issue has attained finality. 27. Hon’ble Supreme Court in case of Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 held that :- “the way in which entries are made by an assessee in his books of account is not determinative of the question whether the assessee has earned any profit or suffered any loss. The assessee may, by making entries which are not in conformity with the proper accountancy principles, conceal profit or show loss and the entries made by him…

DCIT, Gurgaon vs. M/S Planet Edu. (P) Ltd., Gurgaon

ITA 3574/DEL/2015[2010-11]Status: DisposedITAT Delhi31 Jan 2020AY 2010-11

Bench: Shri Kuldip Singh & Dr. B.R.R. Kumar

For Appellant: Shri Sanjay Sood, CAFor Respondent: Shri Saras Kumar, Senior DR
Section 145(3)Section 40A(2)(b)

…assessment order dated 11.05.2016, available at pages 57 to 59 of the paper book, accepted the claim of the assessee qua Project EDEXCEL expenses, thus the issue has attained finality. 27. Hon’ble Supreme Court in case of Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 held that :- “the way in which entries are made by an assessee in his books of account is not determinative of the question whether the assessee has earned any profit or suffered any loss. The assessee may, by making entries which are not in conformity with the proper accountancy principles, conceal profit or show loss and the entries made by him…

M/S. Planet Edu Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

ITA 3473/DEL/2015[2010-11]Status: DisposedITAT Delhi31 Jan 2020AY 2010-11

Bench: Shri Kuldip Singh & Dr. B.R.R. Kumar

For Appellant: Shri Sanjay Sood, CAFor Respondent: Shri Saras Kumar, Senior DR
Section 145(3)Section 40A(2)(b)

…assessment order dated 11.05.2016, available at pages 57 to 59 of the paper book, accepted the claim of the assessee qua Project EDEXCEL expenses, thus the issue has attained finality. 27. Hon’ble Supreme Court in case of Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 held that :- “the way in which entries are made by an assessee in his books of account is not determinative of the question whether the assessee has earned any profit or suffered any loss. The assessee may, by making entries which are not in conformity with the proper accountancy principles, conceal profit or show loss and the entries made by him…

M/S. Planet Edu Pvt. Ltd., Gurgaon vs. JCIT, Gurgaon

ITA 3472/DEL/2015[2009-10]Status: DisposedITAT Delhi31 Jan 2020AY 2009-10

Bench: Shri Kuldip Singh & Dr. B.R.R. Kumar

For Appellant: Shri Sanjay Sood, CAFor Respondent: Shri Saras Kumar, Senior DR
Section 145(3)Section 40A(2)(b)

…assessment order dated 11.05.2016, available at pages 57 to 59 of the paper book, accepted the claim of the assessee qua Project EDEXCEL expenses, thus the issue has attained finality. 27. Hon’ble Supreme Court in case of Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 held that :- “the way in which entries are made by an assessee in his books of account is not determinative of the question whether the assessee has earned any profit or suffered any loss. The assessee may, by making entries which are not in conformity with the proper accountancy principles, conceal profit or show loss and the entries made by him…

Hueco Electronics (I) Pvt.Ltd, (Now Known As Hitachi Automotive Systems Pune (I) Pvt.Ltd), Pune vs. Deputy Commissioner of Income Tax

In the result, the appeal of assessee is allowed

ITA 2/PUN/2017[2012-13]Status: DisposedITAT Pune20 Jan 2020AY 2012-13

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.02/Pun/2017 नििाारण वषा / Assessment Year : 2012-13

For Appellant: Shri Kishor PhadkeFor Respondent: Shri Alok Malviya
Section 143(3)Section 37(1)Section 43A

…epayment of loan cannot affect the cost of asset so acquired. The above observation was given in the context of applicability of section 43A of the I.T. Act, 1961 and therefore, the same cannot be applied in the present case. In Sutlej Cotton Mills Ltd (1979) 116 ITR 1 (SC), Hon. Supreme Court decided the issue in clear terms holding that “the law may, therefore, now be taken to be well settled that where the profit or loss arises to an assessee on 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 tradi…

ITO 2(2)(3), Mumbai vs. Nishigandha Polymers P.Ltd, Mumbai

Accordingly, ground raised by the revenue are dismissed

ITA 6530/MUM/2017[2013-14]Status: DisposedITAT Mumbai10 Jan 2020AY 2013-14

Bench: Shri S. Rifaur Rahman, Am & Shri Ram Lal Negi, Jm आयकरअपीलसं./ I.T.A. No. 6530/Mum/2017 (निर्धारणवर्ा / Assessment Year: 2013-14)

For Appellant: Ms. Kavita Kaushik, DRFor Respondent: Shri Shailesh S. Shah, AR
Section 143(2)Section 40

…uring the course of assessment proceeding to contend that details of foreign exchange loss were filed. The Ld. CIT(A) called for assessment records and thereafter relying on the judgment of Supreme Courts decision in the case of Sutlej Cotton Mills Ltd vs CIT 116 ITR 1, deleted the addition. The order of Ld CIT(A) is not acceptable. The submission dated 18.2.2016 filed was only working of foreign exchange loss and it nowhere proved the justification of loss charged. The said working was devoid of nature of transaction on which forex loss was worked. The said working only showed remittance amount, booking amount,…

ACIT, Meerut vs. M/S. Sarva Up Gramin Bank, Meerut

In the result, the appeal of the Revenue is dismissed

ITA 1937/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Dec 2019AY 2012-13

Bench: Sh. Bhavnesh Saini & Dr. B. R. R. Kumar

For Appellant: Sh. Vivek Gupta, CAFor Respondent: Ms. Ashima Neb, Sr. DR
Section 36(1)(viia)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SH. BHAVNESH SAINI, JUDICIAL MEMBER & DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA No. 1937/Del./2016 Asstt. Year: 2012-13 ACIT Vs Sarva UP Gramin Bank Circle 2 C-39/5, Jagriti Vihar, Meerut Meerut. (APPELLANT) (RESPONDENT) PAN No. AACAS9891G Revenue by : Ms. Ashima Neb, Sr. DR Ms. Nidhi Srivastava, CIT DR Assessee by : Sh. Vivek Gupta, CA Date of Hearing 03.12.2019 Date of Pronouncement 18.12.2019 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the Revenue against the order of the ld. CIT(Appeals)…

M/S.Baby Memorial Hospital Ltd, Kozhikkode vs. The ACIT, Circle-1(1), Kozhikkode

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

ITA 420/COCH/2019[2014-15]Status: DisposedITAT Cochin08 Nov 2019AY 2014-15

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 115JSection 142Section 143(3)Section 263Section 36Section 37(1)

…India. 5.2 It was submitted that then the AO send a letter dated 16/03/2018 in which it was mentioned that the foreign exchange loss is a Capital Expenditure on the ratio of the decision of the Supreme Court in the case of Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1. To this, the assessee filed reply dated 22/03/2018 in which it was pointed out that the ratio of the above decision was applicable only for foreign exchange held outside India and the loss incurred on account of devaluation of the currency. The Ld. AR also relied upon the decision of the Supreme Court in the case of CIT vs. Tata Iron & Steel Ltd…