{"id":5751,"date":"2019-06-14T11:22:06","date_gmt":"2019-06-14T11:22:06","guid":{"rendered":"http:\/\/itatonline.org\/digest\/sparrowhawk-international-channels-india-p-ltd-v-dy-cit-2019-176-dtr-48-delhitrib\/"},"modified":"2019-09-01T14:00:12","modified_gmt":"2019-09-01T14:00:12","slug":"sparrowhawk-international-channels-india-p-ltd-v-dy-cit-2019-176-dtr-48-delhitrib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/sparrowhawk-international-channels-india-p-ltd-v-dy-cit-2019-176-dtr-48-delhitrib\/","title":{"rendered":"Sparrowhawk International Channels India (P) Ltd. v. Dy. CIT (2019) 176 DTR 48\/ 200 TTJ 917 (Delhi)(Trib.)"},"content":{"rendered":"<p>Assessee has taken a working capital ECB loan from its holding company. The loan was converted into equity shares based on the exchange rate of that day. The loss on account of difference in exchange rate was accounted as revenue loss. AO disallowed the loss and treated repayment of ECB loan and allotment of shares as one transaction. The Tribunal held that allotment of shares by a company in lieu of a genuine debt is in compliance of Section 75(1) of Companies Act, 1956. Conversion of dollar denominated ECB into rupee denominated share capital comprises of two distinct transactions and hence deleted the addition made by the AO. (AY. 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 28(i) : Business loss-Conversion of ECB to share capital\u2013Comprises of two distinct transactions\u2013Foreign exchange loss on difference to be charged to P&#038;L Account\u2013Allowable as  revenue  loss. [S. 37(1), 43, Companies Act, 1956, S.75(1)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5751","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-1uL","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/5751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=5751"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/5751\/revisions"}],"predecessor-version":[{"id":6894,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/5751\/revisions\/6894"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=5751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=5751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=5751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}