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Ongc As Representative Assessee Of ... vs Dcit (International Taxation), ... on 28 April, 2017

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 ITA No. 1652/Del/2012 Timex Watches Ltd.
Income Tax Appellate Tribunal - Delhi Cites 17 - Cited by 6 - Full Document

Ongc Videsh Limited & Another vs Deputy Commissioner Of Income Tax, ... on 21 October, 2009

16. By considering the totality of the facts and circumstances of the case we agree with the order of the CIT(A) for the reason that the liability was incurred on account of raw material components etc. and hence it was revenue loss. Since the additional liability had arisen during the current year, the loss incurred by the assessee was "fate accompli'"' and not .a notional one so the same is allowable as per the ratio laid down in the case of ONGC vs. Dy. CIT, 83 ITD 151 (ITAT-Sp. Bench) Delhi. Hence, the order of the CIT(A) on this issue is upheld."
Delhi High Court Cites 2 - Cited by 10 - A K Sikri - Full Document
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