Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 659 - DELHI HIGH COURTDisallowance of Notional Forex Loss - ITAT deleted the addition relying upon the decision of CIT Vs. Woodward Governor India Ltd. [2009 (4) TMI 4 - SUPREME COURT] - ITAT held that the CBDT Circular/Instruction is contrary to the decision of the Supreme Court in the case of CIT Vs. Woodward Governor India Ltd (supra) - HELD THAT:- This Court is of the opinion that the issue of law raised by the petitioner has been conclusively settled by the Supreme Court in CIT Vs. Woodward Governor India Ltd (supra) and Oil and Natural Gas Corporation Ltd., Dehradun [2010 (3) TMI 81 - SUPREME COURT] Validity of CBDT Circular No.3/2010 dated 23rd March, 2010 - CBDT Instruction has been issued in respect of loss on account of trading in foreign exchange derivatives. In the present case, however, the assessee had entered into derivative contracts in order to hedge its exchange risk in respect of export proceeds receivable by it in foreign exchange. Forward contracts entered into by the assessee were not by way of trading per se in foreign exchange derivatives. Consequently, CBDT Circular No.3/2010 dated 23rd March, 2010 has no application to the facts of the present case. This Court is of the opinion that no substantial question of law arises for consideration in the present case.
|