Search Results Page

Search Results

1 - 7 of 7 (0.44 seconds)
The Acit,, Guntur vs M/S. Deccan Tabacco Exports (P) Ltd,, ... on 20 December, 2017 cites

Commissioner Of Income-Tax vs Trustees Of Sreeram-Surajmull Charity ... on 12 March, 1970

4. The AO held that though, the assessee has relied on the decision of the Hon'ble Calcutta High Court in in the case of CIT(Central) vs. Surajmull 4 ITA No.337/VIZ/2016 M/s Deccan Tobacco Exports Pvt. Ltd., Guntur Nagarmull in support of its contention that Sec.43(5) is not applicable to its case, there is neither a decision of the jurisdictional high court nor that of the Hon'ble Supreme Court which is binding. The AO accordingly held that foreign exchange loss is speculative loss and cannot be set off against regular business income. Accordingly disallowed and added back to the income.
Calcutta High Court Cites 7 - Cited by 8 - Full Document

M/S Southern Rocks & Minerals Private ... vs The Acit,, Guntur on 11 October, 2017

In the decision relied by the assessee in the case of London Star Diamond company Ltd. (supra), the Coordinate Bench held that hedging need not be 1 : 1 basis. The coordinate bench of ITAT, Visakhapatnam in the cited case held that no disallowance of loss under forward contract just because assessee had Nil export turnover due to ban on export. In the 12 ITA No.337/VIZ/2016 M/s Deccan Tobacco Exports Pvt. Ltd., Guntur instant case the assesshad made export turnover of Rs.40.00 crores and the AO had not made out a case that the total turnover from the derivative transactions was more than the export turnover.
Income Tax Appellate Tribunal - Panji Cites 11 - Cited by 8 - Full Document

Kgk Enterprises(Now Known As Kgk ... vs Dcit, Jaipur on 28 November, 2017

Therefore, we hold that the assessee's case is squarely covered by the case laws relied upon by the assessee and the decision of the London Star Diamond Co. Ltd. (supra) and the decision of this tribunal cited. Hence, the transactions entered by the assessee cannot be held as speculation loss and required to be allowed as business loss. Accordingly, we uphold the order of the Ld.CIT(A) on this issue and allow the appeal of the assessee.
Income Tax Appellate Tribunal - Jaipur Cites 30 - Cited by 8 - Full Document

Commissioner Of Income Tax, Delhi vs M/S Woodward Governor India P. Ltd on 8 April, 2009

14. The treatment to be given to foreign currency items as per the amended AS - 11 of ICAI, notified by Central Government u/s. 211(3C) of Companies Act, does not make any distinction between items of capital nature and revenue nature. Both are required to be recognized in the Profit & Loss Account. In view of the aforesaid amendment, there exists a divergence of views on the treatment to be meted out in the 9 ITA No.337/VIZ/2016 M/s Deccan Tobacco Exports Pvt. Ltd., Guntur books of account and in the Indian Tax Laws. Further, with an increased flow of inbound/outbound transactions and their complex dynamic structuring, the tax treatment of foreign exchange gains/losses has been surrounded by huge litigation and various Courts have discussed the same in great detail. Exchange Fluctuation Difference and tax treatment of the captioned issue was discussed in great detail in the recent landmark ruling of Supreme Court in the case of CIT v. Woodward Governor India (P.)
Supreme Court of India Cites 41 - Cited by 480 - S H Kapadia - Full Document

Sutlej Cotton Mills Ltd vs Commr. Of Income Tax, West Bengal, ... on 27 September, 1978

Ltd. [2009] 312 ITR 254/179 Taxman 326 where in the SC relied on the earlier judgment in the case of Sutlej Cotton Mills Ltd. v. CIT [1979] 116 ITR 1, observed that 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 or loss would ordinarily be a trading profit or loss if the foreign currency is held by the assessee on revenue account or as a trading asset or as part of circulating capital embarked in the business. But, if on the other hand, the foreign currency is held as a capital asset or as fixed capital, such profit or loss would be of capital nature."
Supreme Court of India Cites 4 - Cited by 524 - P N Bhagwati - Full Document

Commissioner Of Income Tax,Panji vs V.S.Dempo Co.Ltd. Panji on 5 September, 2016

15. Further in the aforesaid ruling the Apex Court also affirmed the principles laid down in the ruling of CIT v. V.S. Dempo & Co. (P.) Ltd. [1994] 206 ITR 291/72 Taxman 134 (Bom.), wherein it was held that a loss arising in the process of conversion of foreign currency which is part of trading asset of the assessee is a trading loss as any other loss. In determining the true nature and character of the loss, the cause which occasions the loss is immaterial; what is material is whether the loss has occurred in the course of carrying on the business or is incidental to it. If there is loss in a trading asset, it would be a trading loss, whatever be its cause because it would be a loss in the course of carrying on the business. Loss in respect of circulating capital is revenue loss whereas loss in respect of fixed capital is not. Loss resulting from depreciation of the foreign currency which is utilised or intended to be utilised in business and is part of the circulating capital, would be a trading loss, but depreciation of fixed capital on account of alteration in exchange rate would be capital loss. For determining whether devaluation loss is revenue loss or capital loss what is relevant is the utilisation of the amount at the time of devaluation and not the object for which the loan had been obtained. The way in which the entries are made by an assessee in the books of account is not determinative of the question whether the assessee has earned any profit or suffered any loss. What is necessary to be considered is the true nature of the transaction and whether in fact it has resulted in profit or loss to the assessee. Therefore, once loss incurred on account of fluctuation in foreign currency, then the loss suffered shall be allowed as business loss, unless it is in the nature of speculation loss.
Supreme Court - Daily Orders Cites 7 - Cited by 72 - Full Document
1