1. S.A. Builders Ltd. v. CIT

268 ITR 1Supreme Court of India2004#3093 most cited

What is 1. S.A. Builders Ltd. v. CIT authority for?

Disallowance of expenditure under Section 40(a)(i) of the Income Tax Act, 1961, is permissible only if the assessee fails to deduct or pay tax at source. The Assessing Officer must demonstrate the existence of business expediency for disallowance, not merely dispute the same.

38

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2025.

Also referred to as

S.A. Builders Ltd. v. CIT · Section 40(a)(i) · Section 40A(3) · disallowance of expenditure · business purpose · tax at source

Issues it is cited on

section 9(1)(v)section 6(1)section 17(2)captive service providersection 192section 195(2)section 5(2)fees for included servicessection 115asection 40(a)(i)related party transactionwithholding tax

Judgments citing 1. S.A. Builders Ltd. v. CIT

The DCIT, Circle-4, Ahmedabad vs. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 1898/AHD/2014[2009-10]Status: DisposedITAT Delhi17 Feb 2021AY 2009-10

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘C’ NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI K.N. CHARY, JUDICIAL MEMBER [Through Video Conferencing] ITA No.99/Ahd./2014 Assessment Year: 2007-08 And ITA No.100/Ahd./2014 Assessment Year: 2008-09 And ITA No.1898/Ahd./2014 Assessment Year: 2009-10 And ITA No.1899/Ahd./2014 Assessment Year: 2010-11 And ITA No.701/Ahd./2015 Assessment Year: 2011-12 And ITA No.2617/Ahd./2015 Assessment Year: 2012-13 DCIT/ACIT, Vs. M/s. Genus Electrotech Ltd., Circle-4, 308, Devarc Complex, Opp. Ahmedabad Big Bazar, S.G. Highway, Ahmedabad PAN :AABCH9645H (Appell…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The ACIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 1763/AHD/2014[2009-10]Status: DisposedITAT Delhi17 Feb 2021AY 2009-10

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘C’ NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI K.N. CHARY, JUDICIAL MEMBER [Through Video Conferencing] ITA No.99/Ahd./2014 Assessment Year: 2007-08 And ITA No.100/Ahd./2014 Assessment Year: 2008-09 And ITA No.1898/Ahd./2014 Assessment Year: 2009-10 And ITA No.1899/Ahd./2014 Assessment Year: 2010-11 And ITA No.701/Ahd./2015 Assessment Year: 2011-12 And ITA No.2617/Ahd./2015 Assessment Year: 2012-13 DCIT/ACIT, Vs. M/s. Genus Electrotech Ltd., Circle-4, 308, Devarc Complex, Opp. Ahmedabad Big Bazar, S.G. Highway, Ahmedabad PAN :AABCH9645H (Appell…

The DCIT, Circle-4, Ahmedabad vs. M/S. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 100/AHD/2014[2008-09]Status: DisposedITAT Delhi17 Feb 2021AY 2008-09

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘C’ NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI K.N. CHARY, JUDICIAL MEMBER [Through Video Conferencing] ITA No.99/Ahd./2014 Assessment Year: 2007-08 And ITA No.100/Ahd./2014 Assessment Year: 2008-09 And ITA No.1898/Ahd./2014 Assessment Year: 2009-10 And ITA No.1899/Ahd./2014 Assessment Year: 2010-11 And ITA No.701/Ahd./2015 Assessment Year: 2011-12 And ITA No.2617/Ahd./2015 Assessment Year: 2012-13 DCIT/ACIT, Vs. M/s. Genus Electrotech Ltd., Circle-4, 308, Devarc Complex, Opp. Ahmedabad Big Bazar, S.G. Highway, Ahmedabad PAN :AABCH9645H (Appell…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2831/AHD/2013[2008-09]Status: DisposedITAT Delhi17 Feb 2021AY 2008-09

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘C’ NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI K.N. CHARY, JUDICIAL MEMBER [Through Video Conferencing] ITA No.99/Ahd./2014 Assessment Year: 2007-08 And ITA No.100/Ahd./2014 Assessment Year: 2008-09 And ITA No.1898/Ahd./2014 Assessment Year: 2009-10 And ITA No.1899/Ahd./2014 Assessment Year: 2010-11 And ITA No.701/Ahd./2015 Assessment Year: 2011-12 And ITA No.2617/Ahd./2015 Assessment Year: 2012-13 DCIT/ACIT, Vs. M/s. Genus Electrotech Ltd., Circle-4, 308, Devarc Complex, Opp. Ahmedabad Big Bazar, S.G. Highway, Ahmedabad PAN :AABCH9645H (Appell…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2830/AHD/2013[2007-08]Status: DisposedITAT Delhi17 Feb 2021AY 2007-08

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘C’ NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI K.N. CHARY, JUDICIAL MEMBER [Through Video Conferencing] ITA No.99/Ahd./2014 Assessment Year: 2007-08 And ITA No.100/Ahd./2014 Assessment Year: 2008-09 And ITA No.1898/Ahd./2014 Assessment Year: 2009-10 And ITA No.1899/Ahd./2014 Assessment Year: 2010-11 And ITA No.701/Ahd./2015 Assessment Year: 2011-12 And ITA No.2617/Ahd./2015 Assessment Year: 2012-13 DCIT/ACIT, Vs. M/s. Genus Electrotech Ltd., Circle-4, 308, Devarc Complex, Opp. Ahmedabad Big Bazar, S.G. Highway, Ahmedabad PAN :AABCH9645H (Appell…

DCIT, C-I, Ludhiana vs. M/S Rico Auto Industries Limited, Ludhiana

ITA 800/CHANDI/2018[2013-14]Status: DisposedITAT Chandigarh23 Apr 2019AY 2013-14
For Appellant: Shri. Vipin GuptaFor Respondent: Smt. Renu Amitabh, CIT DR
Section 14ASection 36

…fficiency of interest free funds to meet the expenses. We rely on the judgments in the assessee’s own case in ITA No. 1093/CHD/2014 and ITA No. 3 2015 dt. 22/11/2016, wherein the judgment of Hon’ble Jurisdictional High Court in the case of Abhishek Industries 268 ITR 1 which was referred by the Assessing Officer in his order has been distinguished. Further in the case of Bright Enterprises in ITA No. 224 of 2013 dt. 24/07/2015 the Hon’ble High Court of Punjab & Haryana clearly held that if interest free funds are available the a presumption would arise that the investments would be out of interest free fund gener…

Cedar Infonet Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 6080/DEL/2015[2008-09]Status: DisposedITAT Delhi12 Oct 2018AY 2008-09

Bench: Sh. Sudhanshu Srivastava & Sh. O.P. Kantassessment Year: 2008-09

Section 132Section 143(2)Section 14ASection 153ASection 36(1)(iii)

…und for the purpose of the business cannot be ruled out. 5.9 On the other hand, Ld. DR relied on the finding of the Ld. CIT(A) and submitted that in view of the decision of the Hon’ble Punjab & Haryana High Court in the case of Abhishek Industries reported in 268 ITR 1 the funds advanced to sister concern for non-business purposes are liable for disallowance under section 36(1)(iii) of the Act. 16 5.10 We have heard the rival submissions and perused the relevant material on record. In the facts of the case, it is undisputed that the assessee has borrowed more than Rs. 75 crores with interest rate of Rs. 14 perce…

DCIT 1(1)(2), Mumbai vs. Finproject India P.Ltd, Mumbai

In the result appeal of the Revenue is dismissed

ITA 4860/MUM/2016[2012-13]Status: DisposedITAT Mumbai02 May 2018AY 2012-13

Bench: Shri C.N Prasad & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.4860/Mum/2016 (नििाारण वर्ा / Assessment Year : 2012-13)

For Appellant: Shri Prem Prakash PareekFor Respondent: Shri Rajat Mittal (DR)
Section 142(1)Section 143(2)Section 143(3)Section 56(1)Section 68

…आयकर अपीऱीय अधिकरण “C” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI C.N PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर अपीऱ सं./I.T.A. No.4860/Mum/2016 (नििाारण वर्ा / Assessment Year : 2012-13) DCIT, 1(1)(2), बिाम/ M/s. Finproject India 579, Aayakar Bhavan, Private Ltd., M.K. Road, SP-1013, v. Mumbai-400020 Sitapura, Industrial Area, Phase-III, Mahatma Gandhi Hospital Road, Jaipur, Rajasthan-302022 स्थायी ऱेखा सं./ PAN : AABCF4445N (अपीऱाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue by : Shri Rajat Mittal (DR) Assessee by: Shri Prem Prakash…

Asst CIT 1(3)(1), Mumbai vs. Sankalp Corporate P. Ltd, Mumbai

In the result, this appeal by the Revenue stands dismissed

ITA 118/MUM/2016[2012-13]Status: DisposedITAT Mumbai14 Feb 2018AY 2012-13

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं./I.T.A. No.118/Mum/2016 ("नधा"रण वष" / Assessment Year: 2012-13) Asst. Cit-1(3)(1) M/S. Sankalp Corporate Pvt. Ltd. Room No. 564, 5Th Floor, Ground Floor, Sunbeam Chambers, बनाम/ Aayakar Bhawan, Opp. Liberty Cinema, New Marine Vs. M. K. Road, Mumbai-400 020 Lines, Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aancs 3998 P (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri V. Justin ""यथ" क" ओर से/Respondent By : Shri Prakash Jhunjhunwala

For Appellant: Shri V. JustinFor Respondent: Shri Prakash Jhunjhunwala
Section 68

…आयकर अपील"य अ"धकरण “ई” "यायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI AMARJIT SINGH, JM आयकर अपील सं./I.T.A. No.118/Mum/2016 ("नधा"रण वष" / Assessment Year: 2012-13) Asst. CIT-1(3)(1) M/s. Sankalp Corporate Pvt. Ltd. Room No. 564, 5th Floor, Ground Floor, Sunbeam Chambers, बनाम/ Aayakar Bhawan, Opp. Liberty Cinema, New Marine Vs. M. K. Road, Mumbai-400 020 Lines, Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. AANCS 3998 P (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant by : Shri V. Justin ""यथ" क" ओर से/Respondent by :…

D.E. Shaw India Advisory Services Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 3, New Delhi

In the result appeal of the assessee is allowed partly for statistical purposes

ITA 6735/DEL/2017[2013-14]Status: DisposedITAT Delhi18 Jan 2018AY 2013-14

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2013-14 Vs. Addl. Cit, Special Range-3, M/S. D.E. Shaw India Advisory Services Private Ltd., E-20, 1St & New Delhi 2Nd Floor, Main Market, Hauz Khas, New Delhi Pan : Aabce6097P (Appellant) (Respondent) Appellant By Sh. Ved Jain, Adv. Respondent By Mrs. Vatsala Jha, Cit(Dr) Date Of Hearing 04.01.2018 Date Of Pronouncement 18.01.2018 Order Per O.P. Kant, A.M.:

Section 143(3)Section 144C(5)Section 234BSection 271Section 92C

…effect from 01.04.2003 as considered by the Co-ordinate Bench in the decision of Ameriprise India Pvt. Ltd. is relied upon by the Id. CIT DR and considering the proposition of law as laid down by the Hon’ble Bombay High Court in the case of 11 Vodafone Shell 268 ITR 1 and followed in Shell India Markets Pvt. Ltd. 369 ITR 516 (Bom.) which issue has not been argued by the Ld. AR and consequently not addressed by the Ld. DR accordingly in the facts of the present case, we deem it appropriate to restore the issue back to the TPO allowing the alternate prayer of the assessee directing the TPO to restrict the addition…

JCIT, Chennai vs. C.H.Robinson Worldwide Freight India P Ltd., Chennai

In the result, the appeal of the Revenue is dismissed

ITA 1181/CHNY/2016[2008-09]Status: DisposedITAT Chennai08 Jun 2017AY 2008-09

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singhआयकर अपील सं./Ita No.1181/Mds/2016 "नधा*रण वष* /Assessment Year: 2008-09

For Respondent: Mr.T. Banusekar, CA
Section 143(3)Section 154Section 172Section 172(1)Section 194CSection 195Section 40Section 9(1)(i)Section 90

…egard to the payments made to Air Operators towards other reimbursement amounted to Rs.17,76,496/-, the learned CIT(A) failed to appreciate the decision of Authority for Advance Ruling in the case of Tata Timken Ltd (273 ITR 67) and Danfoss Industries PO Ltd (268 ITR 1) wherein it has held that the reimbursement of cost is subject to TDS. 3. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer restored. 2.0 In this case, the assessment was passed u/s.143(3) by an Order dated 31.12.2010, by mak…

Deloitte Haskins and Sells, Mumbai vs. Asst CIT 11(2), Mumbai

In the result, all the three appeals of the assessee are treated as partly allowed for statistical purposes

ITA 5097/MUM/2011[2004-05]Status: DisposedITAT Mumbai30 Nov 2016AY 2004-05

Bench: Shri Rajendra & Shri Amit Shukla

Section 143(3)Section 195Section 244ASection 40

…आयकर अपीलीय अधधकरण “एल” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “L”, MUMBAI श्री राजेंद्र, लेखा सदस्य एवुं श्री अधमत श क्ला, न्याधयक सदस्य के समक्ष । BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA No. : 5096/Mum/2011 (Assessment year: 2003-04) ITA No. : 5097/Mum/2011 (Assessment year: 2004-05) ITA No. : 5094/Mum/2011 (Assessment year: 2005-06) डेऱोआइट हासक िंस अँड सेल्लल्लस Vs Asst CIT –11(2), Aayakar Bhavan, Delotte Haskins and Sells, M K Road, 264-265 Vasawani Chambers, Mumbai -400 020 Dr. A B Road, Worli, Mumbai -400 030 PAN:AACFD 4815 A प्रत्य…

Deloitte Haskins and Sells, Mumbai vs. Asst CIT 11(2), Mumbai

In the result, all the three appeals of the assessee are treated as partly allowed for statistical purposes

ITA 5096/MUM/2011[2003-04]Status: DisposedITAT Mumbai30 Nov 2016AY 2003-04

Bench: Shri Rajendra & Shri Amit Shukla

Section 143(3)Section 195Section 244ASection 40

…आयकर अपीलीय अधधकरण “एल” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “L”, MUMBAI श्री राजेंद्र, लेखा सदस्य एवुं श्री अधमत श क्ला, न्याधयक सदस्य के समक्ष । BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA No. : 5096/Mum/2011 (Assessment year: 2003-04) ITA No. : 5097/Mum/2011 (Assessment year: 2004-05) ITA No. : 5094/Mum/2011 (Assessment year: 2005-06) डेऱोआइट हासक िंस अँड सेल्लल्लस Vs Asst CIT –11(2), Aayakar Bhavan, Delotte Haskins and Sells, M K Road, 264-265 Vasawani Chambers, Mumbai -400 020 Dr. A B Road, Worli, Mumbai -400 030 PAN:AACFD 4815 A प्रत्य…

Deloitte Haskins and Sells, Mumbai vs. Asst CIT 11(2), Mumbai

In the result, all the three appeals of the assessee are treated as partly allowed for statistical purposes

ITA 5094/MUM/2011[2005-06]Status: DisposedITAT Mumbai30 Nov 2016AY 2005-06

Bench: Shri Rajendra & Shri Amit Shukla

Section 143(3)Section 195Section 244ASection 40

…आयकर अपीलीय अधधकरण “एल” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “L”, MUMBAI श्री राजेंद्र, लेखा सदस्य एवुं श्री अधमत श क्ला, न्याधयक सदस्य के समक्ष । BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA No. : 5096/Mum/2011 (Assessment year: 2003-04) ITA No. : 5097/Mum/2011 (Assessment year: 2004-05) ITA No. : 5094/Mum/2011 (Assessment year: 2005-06) डेऱोआइट हासक िंस अँड सेल्लल्लस Vs Asst CIT –11(2), Aayakar Bhavan, Delotte Haskins and Sells, M K Road, 264-265 Vasawani Chambers, Mumbai -400 020 Dr. A B Road, Worli, Mumbai -400 030 PAN:AACFD 4815 A प्रत्य…

Joint DIT(It)-2, Mumbai vs. Saipem S.A., Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 1726/MUM/2011[2005-06]Status: DisposedITAT Mumbai17 Jun 2016AY 2005-06

Bench: S/Shri B.R. Baskaran (Am) & C.N.Prasad (Jm)

Section 195Section 9

…on the employees who were providing the management services, it forms part of the receipt in respect of technical services provided by the assessee company. 4.5 It has been held by the Authority for Advance Ruling in the case of Danfoss Industries Pvt. Ltd.(268 ITR 1) that the fees charged by the foreign company to the applicant company in providing these, vices was in the nature of Quid Pro Quo for the services and not reimbursement of expenses and, therefore, the payment of fees had to be made by the Indian company only after withholding tax u/s 195. 4.6 It has also been held in the case of Steffen, Robertson…

DCIT, New Delhi vs. M/S. Ramprastha Greens (P) Ltd., New Delhi

ITA 3239/DEL/2013[2010-11]Status: DisposedITAT Delhi16 Feb 2016AY 2010-11

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaay: 2010-11

For Appellant: Smt. Nandita Kanchan, CIT (DR)For Respondent: S/ Shri Ved Jain, Rajesh Jain, CAs
Section 132Section 132(4)Section 40A

…or the business purpose and made the addition in the hands of the assessee. He submitted that the AO did not point out any adverse finding in respect the documents produced by the assessee. He relied on the following judgments: 1. S.A. Builders Ltd Vs. CIT 268 ITR 1(SC)(2006) , 2. ACIT & others Versus Gillete Diversified Operation P Ltd & others 2015(4) TMI 49, 3. Madhav Prasad Jatia Vs CIT (118 ITR 0200) SC. 13. The Learned Departmental Representative submitted that the last issue in this bunch of appeals relates to ITA No. 3241 and pertains to the disallowance of Rs.55 lacs paid in cash for payment towar…

DCIT, New Delhi vs. M/S. Ramprastha Builders Pvt. Ltd., New Delhi

ITA 3238/DEL/2013[2010-11]Status: DisposedITAT Delhi16 Feb 2016AY 2010-11

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaay: 2010-11

For Appellant: Smt. Nandita Kanchan, CIT (DR)For Respondent: S/ Shri Ved Jain, Rajesh Jain, CAs
Section 132Section 132(4)Section 40A

…or the business purpose and made the addition in the hands of the assessee. He submitted that the AO did not point out any adverse finding in respect the documents produced by the assessee. He relied on the following judgments: 1. S.A. Builders Ltd Vs. CIT 268 ITR 1(SC)(2006) , 2. ACIT & others Versus Gillete Diversified Operation P Ltd & others 2015(4) TMI 49, 3. Madhav Prasad Jatia Vs CIT (118 ITR 0200) SC. 13. The Learned Departmental Representative submitted that the last issue in this bunch of appeals relates to ITA No. 3241 and pertains to the disallowance of Rs.55 lacs paid in cash for payment towar…

Bentley Systems India Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result the appeal of the assessee is allowed for statistical purposes

ITA 6161/DEL/2013[2009-10]Status: DisposedITAT Delhi04 Nov 2015AY 2009-10

Bench: Smt Diva Singh & Shri Inturi Rama Rao

…ive effect from 01.04.2003 as considered by the Co-ordinate Bench in the decision of Ameriprise India Pvt. Ltd. is relied upon by the ld. CIT DR and considering the proposition of law as laid down by the Hon’ble Bombay High Court in the case of Vodafone Shell 268 ITR 1 and followed in Shell India Markets Pvt.Ltd. 369 ITR 516 (Bom.) which issue has not been argued by the Ld. AR and consequently not addressed by the Ld. DR accordingly in the facts of the present case, we deem it appropriate to restore the issue back to the TPO allowing the alternate prayer of the assessee directing the TPO to restrict the addition…