DEPUTY COMMISSIONER OF INCOME TAX, CHENNAI vs. MRF LIMITED, CHENNAI

ITA 911/CHNY/2025Status: DisposedITAT Chennai14 August 2025AY 2016-17Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI JAGADISH (Accountant Member)12 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that retention money payable and forward contract premium charges are allowable expenses/depreciation as they represent accrued liabilities and are recognized in accordance with accounting standards. The Tribunal followed its own previous decisions in the assessee's own case.

What were the facts?

The assessee company, engaged in manufacturing and selling automobile tyres, claimed depreciation on retention money and amortization of forward contract premium. The Assessing Officer disallowed these claims, viewing them as contingent or speculative.

What were the issues?

The primary issues were the allowability of depreciation on retention money payable and the amortization of forward contract premium charges.

Which sections of the Income-tax Act were involved?

Section 37

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI JAGADISH

Hearing: 18.06.2025Pronounced: 14.08.2025

PER ABY T. VARKEY, JM: These are appeals preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), (hereinafter referred

to as ‘Ld.CIT(A)‘), Chennai-20, all dated 31.01.2025 for the Assessment

Years (hereinafter referred to as ‘AY‘) 2015-16, 2013-14 & 2016-17. Since facts are identical and issues are common, for the sake of convenience, we dispose of all these appeals by this consolidated order.

ITA Nos.909 to 911/Chny/2025 (AYs 20

The order continues below.

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