Case Law Details
Case Name : DCIT Vs Dolphin Drilling Pvt. Ltd. (ITAT Delhi)
Appeal Number :
Date of Judgement/Order :
Related Assessment Year :
Courts :
All ITAT ITAT Delhi
Sponsored
This article summarizes ruling of the Delhi Income Tax Appellate Tribunal (ITAT) in the case of DCIT v Dolphin Drilling Pte. Ltd. (Taxpayer) [2009-TIOL-754- 1TAT-DEL]. The ITAT held that the conversion of business income earned in foreign currency into INR, in accordance with Rule 115 (Rule) of the Indian Tax Law (ITL), is to be made by adopting the conversion rate prevailing at the end of the tax year. It also held that the Taxpayer, a company incorporated in Singapore and engaged in the business of hiring out drill-ship in India, is entitled to claim depreciation on the value of the drill-ship.
Background and facts of the case
- As per the Rule, taxpayers earning income in foreign currency are required to convert such income into INR using the telegraphic transfer (TT) buying rate as on the specified date. The specified date is different for different sources of income. In respect of income chargeable under the head ‘house property’, ‘business and profession’ and ‘income from other sources’, the specified date is the last day of the relevant tax year.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Sponsored
Kindly Refer to
Privacy Policy &
Complete Terms of Use and Disclaimer.