10. In Vijaya Laxmi Sugar Mills Ltd. v. Commissioner of Income Tax

191 ITR 641Supreme Court of India1991#8440 most cited

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2025.

Sections most often in play

Section 57(iii)Section 143(3)Section 37(1)Section 57 Section 144C(13)Section 24 Section 56 Section 57(ii)

Issues it is cited on

section 57(iii)section 57 income from other sources business person interest total income document

Judgments citing 10. In Vijaya Laxmi Sugar Mills Ltd. v. Commissioner of Income Tax

NAUTILUS PREMISE OWNERS ASSOCIATION,VADODARA vs. THE INCOME TAX OFFICER, WARD-1(2)(2), VADODARA

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

ITA 2146/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad02 Sept 2025AY 2017-18

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Manish J Shah & Shri Rushin Patel, ARsFor Respondent: Shri Rajenkumar M Vasavda, Sr. DR

Section 56Section 57

…-18 - 5– 2. In contrast, in the present else, the income is derived Mm external sources (bank interest and rent), and the expenses claimed are unrelated to the generation of that income. The Supreme Court's ruling in Vijay Laxmi Sugar Mills Ltd. v. CIT [1991] 191 ITR 641 (SC) clearly establishes that expenses deductible under Section 57 must be incurred wholly and exclusively for the purpose of earning income. This ruling directly counters the appellant's claim, as the expenses in this case are operational in nature and not incurred for the specific purpose of earning the income from interest or rent. Conclusion…

DEEPAK NARAINDAS SIPPY,CHEMBUR MUMBAI vs. ACIT 27 ( 1) MUMBAI, MUMBAI

In the result, appeal of the assessee is allowed

ITA 775/MUM/2024[2015-16]Status: DisposedITAT Mumbai30 Aug 2024AY 2015-16

Bench: Ms Kavitha Rajagopal & Shri Girish Agrawal

For Appellant: Dr. Gopalakrishna, CAFor Respondent: Smt. Mahita Nair, Sr. DR

Section 143(3)Section 57

…, the expenditure must be incurred for the purpose for earning the income though it is not necessary that incurring of expenditure is profitable one or in fact income was earned. Hon'ble Supreme Court in the case of Vijaya Laxmi Sugar Mills Ltd. vs CIT [1991] 191 ITR 641 (SC) held that “The requirement under section 57(iii) that the expenditure should have been incurred 'for the purpose of making or earning such income' shows that the object of spending or the end or aim or the intention of such spending was for earning the interest income. 12. Considering the facts and circumstances of the case and detailed fact…

RAJ KUMAR KANDOI,JAIPUR vs. ACIT CENTRAL CIRCLE 3, JAIPUR, JAIPUR

In the result, the appeal of the assessee stands allowed with no orders as to costs

ITA 575/JPR/2024[2017-18]Status: DisposedITAT Jaipur10 Jul 2024AY 2017-18

For Appellant: Shri S.L. Poddar, AdvocateFor Respondent: Shri Rajesh Kumar Meena, Addl. CIT-DR

Section 57

…earning that income, there should be some nexus between the 12 RAJ KUMAR KANDOI VS ACIT, CIRCLE-3, JAIPUR expenditure and the earning of the income [Addl. CIT vs. Madras Fertilisers Ltd. (1980) 122 ITR 139 (Mad.) : Vijaya Laxmi Sugar Mills Ltd. vs. CIT (1991) 191 ITR 641 (SC): CIT vs. Dwaraka Chit Funds Pvt. Ltd. (1996) 132 Taxation 109 (Mad.). In CIT vs. K. P. Madan Mohan (1997) 136 Taxation 506 (Mad.), the assessee was an individual. His only activity was going to races at Madras and Bangalore. The A. Y. involved was 1973-74. The assessee joined a syndicate consisting of 13 members and the assessee purchased a…

GUJARAT INDUSTRIES POWER CO.LTD.,,BARODA vs. THE ACIT.,CIRCLE-1(1),, BARODA

In the result, the appeal filed by the assessee is hereby dismissed

ITA 3049/AHD/2010[1998-99]Status: DisposedITAT Ahmedabad15 Mar 2024AY 1998-99

Bench: Ms Suchitra Kamble & Shri Waseem Ahmedआयकरअपीलसं./Ita Nos. 3049 & 3050/Ahd/2010 धििाधरणवरध/Asstt. Years: (1998-1999 & 1999 & 2000) Gujarat Industries Power Company The Asst. Commissioner Of Ltd., Vs. Income Tax, P.O Petrochemicals, Circle-1(1), Baroda-391346. Baroda.

For Appellant: Shri Yogesh Shah, ARFor Respondent: Shri Prateek Sharma, Sr.DR

Section 115JSection 147Section 148

…e, In the case of Pandian Chemicals Ltd the Hon. Apex court had held that the word derived from must be understood to as referring to something which has a direct of immediate nexus with the assessee's undertaking. In the case of Vijay Laxmi Sugar Mills v CIT 191 ITR 641 (SC) the Hon. Supreme Court has held that the interest on deposit accrues sui generis and assessable under the head income from other sources. Similarly in the case of Tuticorin Alkalies the Interest earned on surplus funds during pre-commencement period was held to be assessable as Income from other sources. ITA nos.3049 & 3050/Rjt/2010 A.Y.s 1…

ANNAPURNA POLYMERS PVT. LTD. (IN VOL. LIQUIDATION),,AHMEDABAD vs. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2),, AHMEDABAD

Appeal of the assessee is allowed

ITA 2606/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad26 Sept 2022AY 2012-13

For Appellant: Shri Bandish Soparkar & Parin Jain, A.RFor Respondent: Shri Mukesh Jain, Sr. D.R

Section 250(6)

…company was in voluntary liquidation by resolution passed in its general meeting dated 25.03.2014. Accordingly, he held that the case of the assessee was squarely covered by the decision of Hon’ble Apex Court in the Vijaylaxmi Sugar Mills Ltd. Vs. CIT [1991] 191 ITR 641 wherein it had been categorically held that expenses incurred when the assessee was in liquidation had nothing to do with the business of the assessee. The assesse could not be said to be carrying on any business and therefore the expenses were not allowable. The relevant findings of the CIT(A) at para 4.3 to 4.5 of the order as under: 4.3 The fa…

SH. RAVINANDAN KUMAR,LUDHIANA vs. ACIT, C-7, LUDHIANA

In the result, the appeal of the assessee is allowed for statistical purposes (R

ITA 21/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh14 Jun 2021AY 2014-15

For Appellant: Shri Parikshit Aggarwal, CAFor Respondent: Shri Ashok Khanna, Addl.CIT

Section 143(3)Section 250(6)Section 57

…re must have been incurred for the purpose of earning that income, there should be some nexus between the expenditure and the earning of the income [Addl. CIT vs. Madras Fertilisers Ltd. (1980) 122 ITR 139 (Mad.) : Vijaya Laxmi Sugar Mills Ltd. vs. CIT (1991) 191 ITR 641 (SC): CIT vs. Dwaraka Chit Funds Pvt. Ltd. (1996) 132 Taxation 109 (Mad.). In view of the facts of the case as mentioned above and different judicial pronouncements I find that the assessee has clearly failed to establish nexus between the interest income earned and expenditure claimed by the assessee against earning this income. Accordingly disa…

SMT. ZEELIA ZEENA MAYZEAN SHENOY,MANGALURU vs. THE ASSISTANT COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION), MANGALURU

In the result, the appeals filed by the assessee are dismissed

ITA 1716/BANG/2019[2013-14]Status: DisposedITAT Bangalore27 Apr 2020AY 2013-14

Bench: Shri Chandra Poojari

For Appellant: Smt.Sheethal Borkar, AdvocateFor Respondent: Dr.Ganesh R.Ghale, Standing Counsel

Section 143(3)Section 234B

…ing in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income: Provided ............. Explanation: ............" 10. In Vijaya Laxmi Sugar Mills Ltd. v. Commissioner of Income Tax (1991) 191 ITR 641 (SC) where the company was ordered to be wound up by the High Court, certain income had accrued by way of interest income from monies invested in fixed deposits with certain banks. A claim was made for deduction of expenses incurred towards salaries, legal fees, liquidation expenses, TA and DA, postage and stationery in computing its income. The…

SMT. ZEELIA ZEENA MAYZEAN SHENOY,MANGALURU vs. INCOME TAX OFFICER (INTERNATIONAL TAXATION), MANGALURU

In the result, the appeals filed by the assessee are dismissed

ITA 1715/BANG/2019[2012-13]Status: DisposedITAT Bangalore27 Apr 2020AY 2012-13

Bench: Shri Chandra Poojari

For Appellant: Smt.Sheethal Borkar, AdvocateFor Respondent: Dr.Ganesh R.Ghale, Standing Counsel

Section 143(3)Section 234B

JINDAL STEEL & POWER LTD.,NEW DELHI vs. ACIT, HISAR

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

ITA 893/DEL/2014[2009-10]Status: DisposedITAT Delhi29 Apr 2019AY 2009-10

Bench: Sh. Bhavnesh Saini & Sh. N. S. Sainiita No. 893/Del/2014 : Asstt. Year : 2009-10 Jindal Steel & Power Ltd., Vs Asstt. Commissioner Of Jindal Centre, 12, Bhikaji Cama Income Tax, Hisar Circle, Place, New Delhi-110066 Hisar (Appellant) (Respondent) Pan No. Aaacj7079D Assessee By : Sh. Salil Kapoor, Adv., Sh. Sumit Lal Chandani, Adv., Ms. Ananya Kapoor, Adv. & Ms. Pallavi Saigal, Adv. Revenue By : Sh. Sanjay I. Bara, Cit Dr Date Of Hearing :05.03.2019 Date Of Pronouncement : 29.04.2019 Order Per N. S. Saini: This Is An Appeal Filed By The Assessee Against The Order Of Assessing Officer U/S 143(3)/144C(13) Of The Income Tax Act, 1961 Dated 29.10.2018 For Assessment Years 2013-14

For Appellant: Sh. Salil Kapoor, AdvFor Respondent: Sh. Sanjay I. Bara, CIT DR

Section 143(3)Section 144CSection 80Section 80I

…was expended wholly and exclusively for the purpose of such business and, therefore, the same are still not allowable u/s 78 Jindal Steel & Power Ltd. 37(1) of the Act. The Hon'ble Apex Court has held in the case of Vijay Laxmi sugar Mills Ltd. Vs CIT (1991) 191 ITR 641 that where there is no nexus between the business and expenditure, the expenditure is not allowable. In this regard, he drew support from the judgement of the Hon'ble Supreme Court, delivered in the case of Aluminum Corporation of India Ltd. Vs CIT 86 ITR 11, wherein, it was held that for allowing any expenditure there must be commercial expedien…

PARIKSHIT MANDIR SIAL,MUMBAI vs. ITO (IT)- 4(2)(2), MUMBAI

The appeal of the assessee is partly allowed

ITA 377/MUM/2017[2013-14]Status: DisposedITAT Mumbai11 Jul 2018AY 2013-14

Bench: Shri, G. Manjunatha, Am & Shri Ravish Sood, Jm आमकय अऩीर सं./I.T.A. No. 377/Mum/2017 (निर्धारण वषा / Assessment Year: 2013-14) Shri. Parikshit Mandir Sial Ito (I.T)-4(2)(2), Mumbai 501, Sea Goddess Green Field Air India Building., Nariman बिधम/ Estate, A.B Nair Road, Opp. Juhu Point, Mumbai-400 021 Vs. Post Office, Juhu, Mumbai – 400 057. स्थामीरेखासं./जीआइआयसं ./ Pan/Gir No. Avjps5311E (अऩीराथी/Appellant) (प्रत्मथी / Respondent) :

For Appellant: Shri.Reepal Tralashawala, A.RFor Respondent: Shri. Rajat Mittal, D.R

Section 143(3)Section 24Section 57

…s. ITO (I.T)-4(2)(2), Mumbai 3 support of the judgments of the Hon‟ble High Court of Bombay in the case of Bai Bhuriben Lallubhai Vs. CIT (1956) 29 ITR 545 (Bom) and that of the Hon‟ble Supreme Court in the case of Vijaya Laxmi Sugar Mills Ltd. Vs. CIT (1991) 191 ITR 641 (SC), upheld the disallowance of the claim of deduction of the assessee under Sec. 57(iii) of the Act. The alternative contention of the assessee, that the interest expenditure incurred on the borrowed funds utilized for purchase of residential property would be entitled for deduction under Sec. 24(b), also did not find favor with the CIT(A). The…

ACIT NON CORPORATE CIRCLE 10(1), CHENNAI vs. S.VINODH KUMAR, CHENNAI

In the result, the appeal of the Revenue is dismissed

ITA 2527/CHNY/2017[2011-12]Status: DisposedITAT Chennai05 Apr 2018AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri Abraham P. George] आयकर अपील सं./I.T.A. No.2527/Chny/2017 & C.O.No.9/Chny/2018 (Ita No.2527/Chny/2017) "नधा"रण वष" /Assessment Year : 2011-2012. The Assistant Commissioner Of Vs. Shri. S. Vinodh Kumar, Income Tax, No.25, Ranganathan Avenue, Non Corporate Circle 10 (1) Kilpauk, Chennai. Chennai 600 010. [Pan Aaipv 5798G] (अपीलाथ"/Appellant) (Respondent/Cross Objector)

For Respondent: Shri. T.N. Seetharaman, Advocate

Section 44A

…was ITA No. 2527-17, CO-09-18 :- 3 -: pursuing a business activity. Reliance was placed on the judgments of Hon’ble Apex Court in the case of M/s. Narain Swadeshi Weaving Mills Ltd. vs. CEPT, 26 ITR 765 and M/s. Vijaya Laxmi Sugar Mills Limited vs. CIT, 191 ITR 641. Per contra, ld. Authorised Representative strongly supported 5. the order of the ld. Commissioner of Income Tax (Appeals). 6. We have considered the rival contentions and perused the orders of the authorities below. A reading of the order of the ld. Commissioner of Income Tax (Appeals) show that ld. Assessing Officer himself had mentioned the…

RESOURCE REALTY P.LTD,MUMBAI vs. DCIT CIR 8(3), MUMBAI

The appeal of the assessee is dismissed

ITA 5782/MUM/2014[2011-12]Status: DisposedITAT Mumbai06 Dec 2017AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Resource Realty P. Ltd Dcit- Circle 8(3), 4Th Floor, Hdil Tower, बिधम/ R. No. 204, Aaykar Bhawan Anant Kanekar Marg, M.K Road, Vs. Bandra (E), Mumbai – 400 020 Mumbaii-400 703 स्थामी रेखा सं./ जीआइआय सं./ Pan No. Aaecr0433R (अऩीराथी /Appellant) (प्रत्मथी / Respondent) :

For Appellant: Shri Virag Shah, A.RFor Respondent: Shri Saurabh K. Rai, D.R

Section 143(2)Section 143(3)Section 57

…re incurred wholly or exclusively for earning income from dividend and deduction under s. 57(iii), therefore, the same was not allowable as an expenditure. We further find that the Hon’ble Apex Court in the case of Vijaya laxmi Sugar Mills Ltd. Vs. CIT (1991) 191 ITR 641 (SC) had held that the requirement under Sec 57(iii) that the expenditure should have been incurred „for the purpose of making or earning such income', shows that the object of spending or the end or aim or the intention of such spending was for earning the interest income. We thus, in the backdrop of our aforesaid observations are of the conside…

M/S WEST PALM DEVELOPMENTS PVT. LTD. vs. JCIT,

In the result, the appeal by the assessee is dismissed

ITA 1668/BANG/2013[2009-10]Status: DisposedITAT Bangalore24 Jun 2016AY 2009-10

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raom/S.West Palm Development Pvt.Ltd., The Falcon House, No.1, Main Guard Cross Road, Bangalore-560001. … Appellant Pa No:Aaacw 5470 B Vs. Joint Commissioner Of Income-Tax, Circle 12(5), Bangalore. … Respondent

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Sunil Kumar Agarwala, JCIT(DR)

Section 143(1)Section 143(2)Section 143(3)Section 234Section 234B

…purpose of business. Therefore, it is clear that the borrowings were not made for the purpose of earning interest income in the form of loans advanced to directors of the company. The Hon’ble Supreme Court in the case of Vijay Laxmi Sugar Mills Ltd. Vs. CIT (191 ITR 641) had laid down that for allowance of an expenditure under the provisions of sec.57(iii), the expenditure should have been incurred for the purpose of earning such income. The Hon’ble Supreme Court also explained that the expenditure should have been incurred for the purpose of making or earning such income shows that the object of spending or the…