Vinodkumar Diamonds (P.) Ltd. v. Addl. CIT

35 Taxmann.com 337Income Tax Appellate Tribunal2013#7570 most cited

What is Vinodkumar Diamonds (P.) Ltd. v. Addl. CIT authority for?

A transaction is not speculative if the Revenue fails to prove it is speculative. The burden is on the Revenue to establish the speculative nature of a transaction.

15

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2024.

Also referred to as

Vinodkumar Diamonds · speculative transaction · section 43(5) · burden of proof · Revenue appeal · CIT(Appeals) · ITAT order · accounting standard 11

Also reported as

59 SOT 124

Issues it is cited on

scientific research expendituresection 43(5)section 35(1)speculative transactionsurrender of incomedepreciation on goodwillsection 32(1)(ii)commercial rightsweighted deductionsection 35(2ab)section 10bsection 32(1)

Judgments citing Vinodkumar Diamonds (P.) Ltd. v. Addl. CIT

Lupin Ltd., Mumbai vs. The Dy CIT, Circle-3(4), Mumbai

In the result, the appeal of the assessee in I

ITA 77/MUM/2021[2013-14]Status: DisposedITAT Mumbai18 Mar 2024AY 2013-14

Bench: Shri Pavan Kumar Gadale, Jm & Ms Padmavathy S, Am

For Appellant: Shri Rajan Vora, Shri PranayFor Respondent: Ms. Manju Thakur, Sr. DR
Section 10ASection 115JSection 143(3)Section 154Section 271(1)(c)Section 37(1)

…0IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, JM & MS PADMAVATHY S, AM I.T.A. No. 77/Mum/2021 (Assessment Year: 2013-14) Lupin Limited The DCIT Circle-3(4), 7th Floor, Kalpataru Inspire, 29th Floor, Center-1, Off Western Express Highway, Vs. World Trade Centre, Santacruz (East), Mumbai-400055. Cuffe Parade, PAN : AAACL1069K Mumbai-400005 Appellant) : Respondent) I.T.A. No. 1242/Mum/2021 (Assessment Year: 2013-14) The ACIT Circle-3(4), Lupin Limited 29th Floor, Center-1, 7th Floor, Kalpataru Inspire, World Trade Centre, Off Western Express Highway, Vs. Cuffe Parade, Santa…

Asstt. CIT -Circle-3(4), Mumbai vs. M/S. Lupin Ltd., Mumbai

In the result, the appeal of the assessee in I

ITA 1241/MUM/2021[2013-14]Status: DisposedITAT Mumbai18 Mar 2024AY 2013-14

Bench: Shri Pavan Kumar Gadale, Jm & Ms Padmavathy S, Am

For Appellant: Shri Rajan Vora, Shri PranayFor Respondent: Ms. Manju Thakur, Sr. DR
Section 10ASection 115JSection 143(3)Section 154Section 271(1)(c)Section 37(1)

…0IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, JM & MS PADMAVATHY S, AM I.T.A. No. 77/Mum/2021 (Assessment Year: 2013-14) Lupin Limited The DCIT Circle-3(4), 7th Floor, Kalpataru Inspire, 29th Floor, Center-1, Off Western Express Highway, Vs. World Trade Centre, Santacruz (East), Mumbai-400055. Cuffe Parade, PAN : AAACL1069K Mumbai-400005 Appellant) : Respondent) I.T.A. No. 1242/Mum/2021 (Assessment Year: 2013-14) The ACIT Circle-3(4), Lupin Limited 29th Floor, Center-1, 7th Floor, Kalpataru Inspire, World Trade Centre, Off Western Express Highway, Vs. Cuffe Parade, Santa…

Lupin Ltd., Mumbai vs. The Dy CIT, Circle-3(4), Mumbai

In the result, all the appeals of the assessee and revenue are treated as partly allowed

ITA 1921/MUM/2020[2010-11]Status: DisposedITAT Mumbai25 Jan 2024AY 2010-11

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

…IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “A” Bench, Mumbai. Before Shri B.R. Baskaran (AM) & Shri Pavan Kumar Gadale (JM) I.T.A. No. 1921/Mum/2020 (A.Y. 2010-11) I.T.A. No. 1922/Mum/2020 (A.Y. 2011-12) I.T.A. No. 1923/Mum/2020 (A.Y. 2012-13) C.O. No. 128/Mum/2021 (A.Y. 2010-11) C.O. No. 131/Mum/2021 (A.Y. 2011-12) C.O. No. 130/Mum/2021 (A.Y. 2012-13) Vs. DCIT, Circle-3(4) M/s. Lupin Limited 7th Floor, Kalpataru 29th Floor Inspire, Off Western Center 1, World Express Highway Trade Centre Santacruz East Cuffe Parade Mumbai-400 055. Mumbai-400 005. (Appellant) (Respondent) I.T.A. No. 394/Mum/2021 (A.Y. 2010-11…

Lupin Ltd., Mumbai vs. The Dy CIT, Circle-3(4), Mumbai

In the result, the appeal filed by the assessee and the revenue are treated as partly allowed

ITA 1920/MUM/2020[2009-10]Status: DisposedITAT Mumbai03 Feb 2023AY 2009-10

Bench: Shri B.R. Baskaran (Am) & Smt. Kavitha Rajagopal (Jm)

Section 115JSection 131Section 132(3)Section 132(4)Section 139(1)Section 143(1)Section 143(2)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI ‘A’ BENCH, MUMBAI. Before Shri B.R. Baskaran (AM) & Smt. Kavitha Rajagopal (JM) I.T.A. No. 1920/Mum/2020 (A.Y. 2009-10) C.O. No. 129/Mum/2021 (A.Y. 2009-10) Vs. DCIT, Circle-3(4) M/s. Lupin Limited 7th Floor, Kalpataru Inspire 29th Floor Off. Western Express Center 1, World Highway, Santacruz East Trade Centre Mumbai-400 055. Cuffee Parade Mumbai-400 005. (Appellant) (Respondent) I.T.A. No. 395/Mum/2021 (A.Y. 2009-10) Vs. M/s. Lupin Limited ACIT, Circle-3(4) 29th Floor 7th Floor, Kalpataru Inspire Center 1, World Off. Western Express Trade Centre Highway, Santacruz…

DCIT Non Corporate Circle-1(1), Chennai vs. Kunnam Granite Works, Chennai

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

ITA 357/CHNY/2020[2009-10]Status: DisposedITAT Chennai10 Feb 2022AY 2009-10

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri G. Manjunathaआयकर अपील सं./Ita No.357/Chny/2020 िनधा"रण वष" /Assessment Year: 2009-10 The Dy. Commissioner- V. M/S.Kunnam Granite Works, Of Income Tax, No.24, Old No.22A, Non-Corporate Circle-I(1), Sankaralaya, Malony Road, Chennai-34. T.Nagar, Chennai-600 017. [Pan: Aaafk 0659 H]

For Appellant: Mr.B.Ramana Kumar, Adv
Section 43(5)

…e only increased the risk to the assessee and not reduced the risk like as a 'hedge'? 8. The ld. CIT(A) failed to appreciate the decision of Hon’ble Mumbai ITAT in the case of Shri Vinodkumar Diamonds (P) Ltd. vs. Additional Commissioner of Income lax (2013) 35 Taxmann 337, wherein it was held 'In order that forward transactions in commodities may fall within proviso (a) to section 43(5) of the Act, it is necessary that the raw materials or merchandise in respect of which the forward transactions have been made by the assesses must have a direct connection with the goods manufactured or the merchandise sold by h…

The Pr Commissioner of Income Tax vs. M/S Mphasis Ltd

The appeal is dismissed accordingly

ITA/62/2018HC Karnataka24 Feb 2021

Bench: SATISH CHANDRA SHARMA,V SRISHANANDA

Section 10BSection 143(3)Section 144Section 260

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF FEBRUARY, 2021 PRESENT THE HON'BLE MR. JUSTICE SATISH CHANDRA SHARMA AND THE HON'BLE MR. JUSTICE V.SRISHANANDA I.T.A. NO.62/2018 BETWEEN: 1. THE PR.COMMISSIONER OF INCOME TAX-4, BMTC COMPLEX, KORAMANGALA, BENGALURU. 2. THE ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE 12, BANGALORE. …APPELLANTS (BY SRI.E.I.SANMATHI, ADV.,) AND: M/S. MPHASIS LTD., BAGMANE WORLD TECHNOLOGY CENTRE, 1ST FLOOR, WING-A, WTC-3, K.R.PURAM, MARATHHALLI, OUTER RING ROAD, MAHADEVAPURA, BENG…

Asst.C.I.T., Bangalore vs. M/S Acer India Private Limited, Bangalore

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

ITA 119/BANG/2016[2010-11]Status: DisposedITAT Bangalore02 Dec 2020AY 2010-11

Bench: Shri George George K. & Shri B.R. Baskaranassessment Year: 2010-11

For Appellant: Mr. Muzaffar Hussain, D.RFor Respondent: Shri Sharath Rao, A.R
Section 40

…ITA No.119/Bang/2016 M/s. Acer India Private Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “B’’BENCH: BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER Assessment Year: 2010-11 M/s. Acer India Private Limited # 13, 6th Floor ACIT Embassy Heights Circle-1(1)(1) Vs. Magarath Road Bengaluru Next to Hosmat Hospital Bangalore-560 025. PAN NO : AACCA1237A APPELLANT RESPONDENT Appellant by : Mr. Muzaffar Hussain, D.R. Respondent by : Shri Sharath Rao, A.R. Date of Hearing : 05.11.2020 Date of Pronouncement : 02.12.2020 O R D E R PER B.R. BASKARAN, ACCOUNT…

Smt. Puneetha @ Puneetha B. A vs. Sri. D. Ravi

The appeal is dismissed accordingly

RPFC/62/2018HC Karnataka28 Feb 2020

Bench: R DEVDAS

Section 10BSection 143(3)Section 144Section 260

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF FEBRUARY, 2021 PRESENT THE HON'BLE MR. JUSTICE SATISH CHANDRA SHARMA AND THE HON'BLE MR. JUSTICE V.SRISHANANDA I.T.A. NO.62/2018 BETWEEN: 1. THE PR.COMMISSIONER OF INCOME TAX-4, BMTC COMPLEX, KORAMANGALA, BENGALURU. 2. THE ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE 12, BANGALORE. …APPELLANTS (BY SRI.E.I.SANMATHI, ADV.,) AND: M/S. MPHASIS LTD., BAGMANE WORLD TECHNOLOGY CENTRE, 1ST FLOOR, WING-A, WTC-3, K.R.PURAM, MARATHHALLI, OUTER RING ROAD, MAHADEVAPURA, BENG…

The ACIT, Cochin vs. M/S.Sud Chemie India P. Ltd, Cochin

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

ITA 41/COCH/2017[2010-11]Status: DisposedITAT Cochin26 Feb 2018AY 2010-11

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

…as contemplated in section 43(5) of the Act. 4.5.10 The issue of speculative transactions and hedging transactions has been examined and analysed in detail in the decision of the ITAT, Mumbai in the case of S. Vinod Kumar Diamonds (P) Ltd. reported in (2013) 35 Taxmann.com 337 (Mumbai - Trib). The relevant paragraphs of this order are extracted hereunder and read as follows: "5.2.1. The definition of 'speculative transaction' in section 43(5) of the Act, gives a simple test for deciding for the purpose of income-tax what a speculative transaction I.T.A. Nos./ 3, 17 & 41/C/2017 means. If a contract for sale or…

The ACIT, Cochin vs. M/S.Sud Chemie India P. Ltd, Aluva

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

ITA 3/COCH/2017[2008-09]Status: DisposedITAT Cochin26 Feb 2018AY 2008-09

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

…as contemplated in section 43(5) of the Act. 4.5.10 The issue of speculative transactions and hedging transactions has been examined and analysed in detail in the decision of the ITAT, Mumbai in the case of S. Vinod Kumar Diamonds (P) Ltd. reported in (2013) 35 Taxmann.com 337 (Mumbai - Trib). The relevant paragraphs of this order are extracted hereunder and read as follows: "5.2.1. The definition of 'speculative transaction' in section 43(5) of the Act, gives a simple test for deciding for the purpose of income-tax what a speculative transaction I.T.A. Nos./ 3, 17 & 41/C/2017 means. If a contract for sale or…

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)

…आयकर अपील"य अ"धकरण “A” "यायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर 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) Revenue by Sh. Vikash Kumar Agarwal Assessee by : Shri Harsh K…

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

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

ITA 882/DEL/2014[2009-10]Status: DisposedITAT Delhi14 Oct 2015AY 2009-10

Bench: Shri S.V. Mehrotra & Shri Chandra Mohan Garg

For Appellant: S/Shri S.D. Kalipa, R.R.Maurya, Praveen SharmaFor Respondent: S/Shri Ravi Jain, CIT DR, Subhakant Sahoo, Sr. DR
Section 119Section 143(3)Section 144CSection 144C(5)Section 234BSection 271(1)(c)Section 92

…ITA No.882/D/2014 Asstt.Year: 2009-10 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH `I’ NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER I.T.A.No.882/Del/2014 Assessment Year : 2009-10 Bechtel India Pvt. Ltd., vs DCIT, 418, Naurang House, Circle-2(1), 21, K.G. Marg, New Delhi. New Delhi. (PAN: AAACB0298A) (Appellant) (Respondent) Appellant by: S/Shri S.D. Kalipa, R.R.Maurya, Praveen Sharma, Sanjay Kumar, Advocates Respondent by : S/Shri Ravi Jain, CIT DR, Subhakant Sahoo, Sr. DR Date of last hearing: 12.10.2015 Date of pronouncement: 14.10.2015 O R D E…

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

…ailed assessment order and the Commissioner of Income Tax (Appeals) confirmed the view of the Assessing Officer. He placed reliance on the order of the Tribunal in the case of Shri Vinodkumar Diamonds, (P) Ltd. vs. Additional Commissioner of Income Tax (2013) 35 Taxmann 337, the Tribunal wherein it was held as under Section 43(5) of the Income-tax Act, 1961 - Speculative transactions [Hedging transactions] - Assessment year 2008-09 - Assessee company exporter of diamond entered into forward contracts in respect of foreign exchange and incurred loss on cancellation of such contracts - It claimed that these transac…

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

…ailed assessment order and the Commissioner of Income Tax (Appeals) confirmed the view of the Assessing Officer. He placed reliance on the order of the Tribunal in the case of Shri Vinodkumar Diamonds, (P) Ltd. vs. Additional Commissioner of Income Tax (2013) 35 Taxmann 337, the Tribunal wherein it was held as under Section 43(5) of the Income-tax Act, 1961 - Speculative transactions [Hedging transactions] - Assessment year 2008-09 - Assessee company exporter of diamond entered into forward contracts in respect of foreign exchange and incurred loss on cancellation of such contracts - It claimed that these transac…

Star Exports & Imports, Bangalore vs. Add.C.I.T., Bangalore

Appeal of the assessee is allowed

ITA 997/BANG/2012[2009-10]Status: DisposedITAT Bangalore06 Feb 2015AY 2009-10

Bench: Shri N.V.Vasudevan & Shri Abraham P George

For Appellant: Shri H.N.Khincha, CAFor Respondent: Shri P.Dhivahar, JCIT
Section 43(5)

…not say that it was a part of its regular business. The forward contracts were settled by cancellation and not by delivery of foreign currency. Reliance was placed on the decision of Mumbai Bench in the case of S.Vinod Kumar Diamonds Pvt. Ltd Vs ITO (2013) 59 SOT 124 and also on the decision of Co- ordinate Bench in the case of K. Mohan & Co(Exports) Pvt. Ltd (Supra). Learned DR also placed reliance on the decision of Bombay High Court in 11 ITA No.997(B)/12 the case of CIT Vs Sri Bharath R Ruia(HUF) (2011) 337 ITR 452 in support of his argument that application of Section 43(5) was not restricted to contra…

Vinodkumar Diamonds (P.) Ltd. v. Addl. CIT (35 Taxmann.com 337) — Cited in 15 Judgments | BharatTax