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
Reported in : (2007)108TTJ(Delhi)924
1. This appeal by the assessee is directed against the order of learned CIT(A)-XV, New Delhi dt. 21st Dec, 2006. The assessee has raised the following ground of appeal: That the CIT(A) erred on facts and in law in confirming the action of the AO in denying the set-off of loss of Rs. 2,46,93,358 pertaining to the unit of the appellant eligible for exemption under Section 10A of the IT Act, 1961 ('the Act'), against profits of the other units of the appellant for the relevant year.2. During the relevant assessment year, the applicant incurred a loss of Rs. 2,46,93,358 in the amorphous division, which was otherwise eligible for deduction under Section 10A of the Act. The applicant claimed set-off of the aforesaid loss against the profits of the other units. The AO disallowed the aforesaid claim of the assessee, on the ground that the declaration as required under Section 10A(8) of the Act for not claiming the benefit of Section 10A of the Act had not been filed by the assessee. The actio...
Tag this Judgment!