TaxTMI 
TaxTMI 
2015 (7) TMI 860
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....ng the submissions of the assessee without making any verification as to how the vendor balances and bank advances are on revenue account. 2. The appellant craves leave to add, amend or modify the ground of appeal before or during the course of the appeal." 2. The relevant facts of the case are that the assessee was engaged in the business of Design & Construction of Tunnel between Indira Gandhi International Airport Station and Dwarka Sector-21 declared an income of Rs. 5,55,19,860/-. The return was picked up for scrutiny wherein the assessee was required to explain the loss claimed under head "other income" wherein considering the reply of the assessee addition by way of a disallowance was made on the following facts:- 3. "On per....
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....9,566 - 1,04,29,566 Reinstatement as on 31st March 2009 of Vendor Balance 15. - 46,42,916 (46,42,916) Gain on sale of 500,000 Euro 16. - 55,74,167 (55,74,167) Gain on sale of 500,000 Euro 5,51,95,359 3,65,37,186 1,86,58,173 (emphasis provided by the Bench) 3. In appeal before the First Appellate Authority, the action was assailed by the assessee. The CIT(A) considering the reply of the assessee and relying upon the judgement of the Apex Court in the case of CIT, Delhi vs Woodward Governor India Pvt. Ltd. and Ors. and the decision of the Special Bench in the case of ONGC Ltd. vs. DCIT 83 ITD 151 (Delhi) proceeded to allow relief to the assessee. 4. Aggrieved by whic....
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....stated into Rupees at the rate of exchange prevailing on the balance sheet date. The policy for accounting the foreign exchange fluctuation is consistent and is being followed from year to year. The Hon'ble Supreme Court in the case of CIT Vs Woodward Governor India Ltd. 223 CTR 7 has been affirmed the decision of the Hon'ble Delhi High Court in the case of CIT Vs Woodward Governor Pvt. Ltd. 210 CTR (Delhi). The operative part affirmed is as under: "It is important to note that foreign currency notes, balance in bank accounts denominated in a foreign currency, and receivables / payables and loans denominated in a foreign currency as well as sundry creditors are a monetary items which have to be valued at the closing rate under....
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....ding liability relating to import of raw material using closing rate of exchange. Any difference, loss or gain, arising on conversion of the said liability at the closing rate, should be recognized in the P&L ale for the reporting period CIT Vs Woodward Governor India (Pvt.) Ltd. & Others (2007) 210 CTR (Del) 354 "affirmed. " The Hon'ble ITAT Spl. Bench (Delhi) in the case of ONGC Ltd. Vs DCIT 83 ITD 151 Delhi has observed as under: "Before concluding we would like to point out that the assessee's claim for loss arising as a result of fluctuation in foreign exchange rates on the closing day of the year has been disallowed by the AO, inter alia, on the ground that this liability was contingent liability and the loss was notiona....