Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (2004)89ITD235(Delhi)
1. This Special Bench has been constituted under section 255 (3) of the Income Tax Act, 1961 to decide the following question arising out of the assessee's appeal in ITA No. 6177/Del/96 for assessment year 1993-94 : "Whether on facts and in law, the gains earned on cancellation of the Foreign Exchange Forward Contract are capital receipt or revenue receipt? If it is capital receipt, whether the same should be reduced from the cost of plant & machinery in connection with which the forward contract was entered into?" 2. At the outset, relevant facts having bearing on the point in issue may briefly be set out. The assessee company is a limited company engaged in the business of manufacture and sale of automobile tyres, tubes etc. The assessee imported certain plant and machinery for setting up a new tyre manufacturing plant near Baroda in Gujarat state during the year 1991. For financing the project, the assessee borrowed funds in US Dollars and Pound Sterling from US Exim Bank and C...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
1. ITA Nos. l733/Del/201, 2473/Del/2000, 2474/Del/2000 and 2475/Del/2000 pertaining to asstt. Year 1995-96 to 1998-99 respectively arc directed against orders of learned CIT(A)-XIX, New Delhi dated 5.3.2001 and 7.3.2000 in an appeal against assessment framed Under Section 143(3) read with Section 147 of the Income-tax Act, 1961 (the Act).1.1 ITA Nos. 820 to 823/Del/2005 are directed against common order of learned CIT(A)XXIX, New Delhi dated 15.12.2004 in an appeal against assessment framed Under Section 143(3) read with Section 250 of the Act.1.2 Cross Objection Nos. 47, 48, 49 and 50/Del/2006 by the Revenue are in respect of ITA No. 1733, 2473 to 2475/Del/2000. C.O. Nos. 51 to 54 of 2006 by the revenue are in respect of ITA Nos. 820 to 823 of 2005.Since common issues are involved in all these appeals and cross objections were heard together and are being disposed of by this common order.2. Galileo International Inc. (the 'Appellant'), a resident of USA, is in the business of maintai...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
1. These six appeals, three filed by the taxpayer and three filed by the Revenue are cross-appeals which are directed against three separate orders passed by the learned CIT(A) dated 31.12.2004, 21.12.2006 and 31.1.2007 for AY 2001-02, 2002-03 & 2003-04 respectively. As some common issues are involved therein, the same have been heard together and are being disposed of by this single consolidated order.2. In ground No. 1, the Revenue has challenged the action of the learned CIT(A) in deleting the addition of Rs. 2,25,38,920/- made by the Assessing Officer on account of provision for warranty while computing the total income of the taxpayer under the normal provisions and also in directing the AO to exclude the said provision while computing the book profit Under Section 115JB.3. In its profit and loss account, warranty charges amounting to Rs. 4,04,12,572/-were debited by the taxpayer company. The said amount was inclusive of the warranty expenses actually incurred by the taxpayer...
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