AO made an addition on account of unrealized foreign exchange gain and assessed assessee’s income as it followed mercantile system of accounting. CIT(A) and tribunal deleted the addition as profit was only notionally calculated based on foreign exchange rate on the last day of the year. High Court relied on the decision of CIT v. Woodward Governor India P. Ltd. (2009) 312 ITR 254 (SC) and remanded the matter to the tribunal for recomputing the assessment. (ITA No. 496 of 2008 dt. 18-04-2019) (AY. 2004-05)
CIT v. Kesoram Industries Ltd. (2019) 179 DTR 49 / 104 CCH 437/ ( 2020) 268 Taxman 446 (Cal.)(HC)
S. 28(i) : Business income–Un realised foreign exchange gains-Matter remanded. [S. 145]