CIT v. Woodward Governor India P. Ltd. : tax treatment of foreign exchange losses on revenue and capital account

In Commissioner of Income Tax (CIT) v. Woodward Governor India P. Ltd., the Indian Supreme Court ruled on the tax treatment of foreign exchange losses on both 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 the practical value of the case for taxpayers.