CIT v. Woodward Governor India P. Ltd.: Tax Treatment of Forex Losses on Revenue and Capital Account
6 Pages Posted: 19 Jun 2009 Last revised: 3 Feb 2017
Date Written: June 1, 2009
In the case of Commissioner of Income Tax (CIT) v. Woodward Governor India P. Ltd., the Supreme Court has ruled on the tax treatment of forex losses on both the revenue and capital account transactions. This article examines the legal principles laid down in Woodward in light of the relevant provisions of the Income Tax Act, 1961, and explains its practical value for the taxpayers.
Keywords: Capital account, forex loss, Income tax, revenue account, deduction, exchange rate, Woodward
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