166 (Mum.) and Dredging International v. Asstt. D1T (IT) 1201II

48 SOT 430Income Tax Appellate Tribunal2011#7933 most cited

What is 166 (Mum.) and Dredging International v. Asstt. D1T (IT) 1201II authority for?

Foreseeable losses, when determined on an estimated basis as per Accounting Standard 7 (AS-7) and duly debited in audited accounts, are allowable as expenditure under section 37(1) of the Income Tax Act, irrespective of the accounting method used.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2017 to 2023.

Also referred to as

Dredging International v. Asstt. DIT · AS-7 · foreseeable loss · allowable expenditure · section 37(1) · construction contracts · audited accounts · estimated basis

Issues it is cited on

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Judgments citing 166 (Mum.) and Dredging International v. Asstt. D1T (IT) 1201II

DCIT- Central Circle 5(1), Mumbai vs. M/S. Itd Cementation India Limited, Mumbai

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

ITA 642/MUM/2023[2016-17]Status: DisposedITAT Mumbai26 Jul 2023AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry () Assessment Year: 2016-17 The Dcit, Central Circle- M/S Itd Cementation India 5(1), Ltd., Vs. Room No. 1928, 19Th Floor, National Plastic Building, A- Air India Building, Nariman Subhash Road, Paranjape B Point, Scheme, Vile Parle (E), Mumbai-400021. Mumbai-400057. Pan No. Aaact 1426 A Appellant Respondent

For Appellant: Mr. Vijay MehtaFor Respondent: Mr. Ram Prakash Rastogi
Section 115JSection 14ASection 37

…sses were allowed irrespective of method of were allowed irrespective of method of were allowed irrespective of method of accounting in terms of AS accounting in terms of AS-7. In the case of Dre 7. In the case of Dredging International in 48 International in 48 SOT 430 (2011), the issue before SOT 430 (2011), the issue before the Tribunal was whether us. 37(1) of the Act provision the Tribunal was whether us. 37(1) of the Act provision the Tribunal was whether us. 37(1) of the Act provision for foreseeable for foreseeable for foreseeable loss loss loss made made made in in in accordance accordance accordance wit…

Tremco Roffing & Facility Services Pvt Ltd, Chennai vs. ACIT, Corp Cir-3(1), Chennai

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

ITA 3350/CHNY/2018[2012-12]Status: DisposedITAT Chennai22 Dec 2021AY 2012-12

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita No.3350/Chny/2018 िनधा"रण वष" /Assessment Year: 2012-13 M/S. Tremco Roofing & Facility The Asst. Commissioner Of Services Pvt. Ltd., Income Tax, No.60, B-1, First Floor, Vs. Corporate Circle-3(1), Ganesh Towers, First Avenue, Chennai. 100 Feet Road, Ashok Nagar, Chennai – 600 083. [Pan: Aadct 5389H] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से/ Appellant By : Shri Farookh Irani, Advocate ""थ" की ओर से /Respondent By : Shri S. Bharath, Cit सुनवाई की तारीख/Date Of Hearing : 25.10.2021 घोषणा की तारीख /Date Of Pronouncement : 22.12.2021 आदेश / O R D E R Per V. Durga Rao: This Appeal Filed By The Assessee Is Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-11, Chennai In I.T.A No.85/2016-17 Dated 26.09.2018 Relevant To The Assessment Year 2012- 13. 2. The Grounds Of Appeal Raised By The Assessee Are As Under: “Based On The Facts & In The Circumstances Of The Case & In Law, Tremco Roofing & Facility Services Private Limited (Hereinafter Referred To As 'The Appellant') Craves Leave To Prefer An Appeal Against The Order Dated 26 September 2018

For Appellant: Shri Farookh Irani, AdvocateFor Respondent: Shri S. Bharath, CIT
Section 250

…ited vs CIT, Chennai (2009) 180 taxman 422 (SC); 2. CIT vs Woodward Governor India Private Limited (2009) 179 Taxman 326; 3. Jacobs Engineering India Pvt. Ltd. vs ACIT (2011) 14 taxmann.com 186 (Mumbai \Tribunal); 4. Dredging International N.V. vs ADIT (2011) 48 SOT 430 (Mumbai Tribunal); 5. Mazagon Dock Ltd vs JCIT (2009) 29 SOT 356 (Mumbai Tribunal); 6. ACIT vs Triveni Engineering & Industries (ITA 346 of 2009) (Delhi HC); 7. ACIT vs M/s ITD Cementation India Ltd (ITA 2991/Mum/2011) (Mumbai Tribunal); 8. ACIT vs Ashoka Buildcon Ltd (ITA 394/PN/2007) (Pune Tribunal); 9. Bharat Earth Movers vs CIT (2000) 112 Taxm…

Humboldt Wedag India Pvt. Ltd., Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee in is allowed and the appeal in ITA

ITA 475/DEL/2021[2016-17]Status: DisposedITAT Delhi18 Aug 2021AY 2016-17

Bench: Ms. Suchitra Kambledr. B. R. R. Kumarita No. 8119/Del/2018 : Asstt. Year: 2014-15 Humboldt Wedag India Pvt. Ltd., Vs Acit, A-36, Mehtab House, Mohan Co- Circle-11(2), Op Estate, Mathura Road, New Delhi-110002 New Delhi-110044 (Appellantt (Respondent) Pan No. Aaach7474G

For Appellant: Sh. Ajit Kumar Jain, CAFor Respondent: Sh. Surenderpal, CIT DR
Section 143(3)

…assessee has claiming provision for anticipated losses on the grounds that Accounting Standard 7 on construction contracts allows such provision. He relied on the judgments in the case of Mazagaon Dock Ltd. Vs. JCIT 29 SOT 356, Dredging International Vs ACIT 48 SOT 430 wherein the loss on estimated basis determined on technical estimation has been allowed. 26. The ld. DRP held that this liability has not been crystallized during the relevant period and disallowed the loss owing to the 13 Humboldt Wedag India Pvt.Ltd. absence of cogent evidences to prove that the liability has been taken shape. 27. Before us, t…

Humboldt Wedag India Pvt. Ltd., New Delhi vs. ACIT, Circle-11(2), New Delhi

In the result, the appeal of the assessee in is allowed and the appeal in ITA

ITA 8119/DEL/2018[2014-15]Status: DisposedITAT Delhi18 Aug 2021AY 2014-15

Bench: Ms. Suchitra Kambledr. B. R. R. Kumarita No. 8119/Del/2018 : Asstt. Year: 2014-15 Humboldt Wedag India Pvt. Ltd., Vs Acit, A-36, Mehtab House, Mohan Co- Circle-11(2), Op Estate, Mathura Road, New Delhi-110002 New Delhi-110044 (Appellantt (Respondent) Pan No. Aaach7474G

For Appellant: Sh. Ajit Kumar Jain, CAFor Respondent: Sh. Surenderpal, CIT DR
Section 143(3)

…assessee has claiming provision for anticipated losses on the grounds that Accounting Standard 7 on construction contracts allows such provision. He relied on the judgments in the case of Mazagaon Dock Ltd. Vs. JCIT 29 SOT 356, Dredging International Vs ACIT 48 SOT 430 wherein the loss on estimated basis determined on technical estimation has been allowed. 26. The ld. DRP held that this liability has not been crystallized during the relevant period and disallowed the loss owing to the 13 Humboldt Wedag India Pvt.Ltd. absence of cogent evidences to prove that the liability has been taken shape. 27. Before us, t…

ACIT, Bangalore vs. M/S. Abb Limited, Bangalore

In the result, the revenue’s appeal is dismissed

ITA 755/BANG/2007[2001-02]Status: DisposedITAT Bangalore04 Mar 2021AY 2001-02

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2001-02

For Appellant: Shri Percy Pardiwalla, Sr. CounselFor Respondent: Shri Dilip, Sr. Standing Counsel for the Dept
Section 80Section 80H

…been notified as applicable AS u/s.145 of the Act. Reliance was also placed by him on the following other decisions in support of his contention that foreseeable loss has to be allowed as deduction:- (1) Dredging International N.V. Vs. ADIT (IT) 1 (2). (2011) 48 SOT 430 (Mumbai) wherein it was held that foreseeable loss has to be allowed as deduction under AS-7 in a case relating to AY 2006-07. (2) M.N. Dastur & Co. Ltd. Vs. DCIT (1997) 61 ITD 167(Cal). This case relates to percentage completion method (POC method) of recognizing income from the business of rendering consultancy services. The method was accepted…

M/S. Abb Limited(Formerly Asea Brown Boveri Limited), Bangalore vs. ACIT, Bangalore

In the result, the revenue’s appeal is dismissed

ITA 562/BANG/2007[2001-02]Status: DisposedITAT Bangalore04 Mar 2021AY 2001-02

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2001-02

For Appellant: Shri Percy Pardiwalla, Sr. CounselFor Respondent: Shri Dilip, Sr. Standing Counsel for the Dept
Section 80Section 80H

…been notified as applicable AS u/s.145 of the Act. Reliance was also placed by him on the following other decisions in support of his contention that foreseeable loss has to be allowed as deduction:- (1) Dredging International N.V. Vs. ADIT (IT) 1 (2). (2011) 48 SOT 430 (Mumbai) wherein it was held that foreseeable loss has to be allowed as deduction under AS-7 in a case relating to AY 2006-07. (2) M.N. Dastur & Co. Ltd. Vs. DCIT (1997) 61 ITD 167(Cal). This case relates to percentage completion method (POC method) of recognizing income from the business of rendering consultancy services. The method was accepted…

DCIT, Circle - 8(2), Kolkata vs. M/S. Spml Infra Limited, Kolkata

In the result, this appeal of the Revenue is dismissed

ITA 1950/KOL/2018[2015-16]Status: DisposedITAT Kolkata10 Jul 2020AY 2015-16

Bench: Sri J. Sudhakar Reddy & Sri S.S. Godara)

Section 14ASection 250Section 80

…ing standard and the decisions of the Tribunal rendered in the cases of Mazagaon Dock Ltd. v. Jt. CIT [20091 29 SOT 356 (Mum.) and Jacobs Engg. India (P.) Ltd. v. Asstt. CIT [201II 14 taxmann.com 166 (Mum.) and Dredging International v. Asstt. D1T (IT) 1201II 48 SOT 430/15 laxmann.com 198 (Mum.), the Assessing Officer was to be directed to recompute the business profits by allowing the losses provided by the assessee in its books. [Para 19] The salient features emerging from the above discussion are as follows: 1. The contract should be fixed price contracts. 2. The contractor is liable to claim foreseeable losse…

DCIT, Circle - 8(2), Kolkata vs. M/S. Spml Infra Limited, Kolkata

In the result, this appeal of the Revenue is dismissed

ITA 1410/KOL/2018[2013-14]Status: DisposedITAT Kolkata10 Jul 2020AY 2013-14

Bench: Sri J. Sudhakar Reddy & Sri S.S. Godara)

Section 14ASection 250Section 80

…ing standard and the decisions of the Tribunal rendered in the cases of Mazagaon Dock Ltd. v. Jt. CIT [20091 29 SOT 356 (Mum.) and Jacobs Engg. India (P.) Ltd. v. Asstt. CIT [201II 14 taxmann.com 166 (Mum.) and Dredging International v. Asstt. D1T (IT) 1201II 48 SOT 430/15 laxmann.com 198 (Mum.), the Assessing Officer was to be directed to recompute the business profits by allowing the losses provided by the assessee in its books. [Para 19] The salient features emerging from the above discussion are as follows: 1. The contract should be fixed price contracts. 2. The contractor is liable to claim foreseeable losse…

DCIT, Circle - 8(2), Kolkata vs. M/S. Spml Infra Limited, Kolkata

In the result, this appeal of the Revenue is dismissed

ITA 1212/KOL/2018[2012-13]Status: DisposedITAT Kolkata10 Jul 2020AY 2012-13

Bench: Sri J. Sudhakar Reddy & Sri S.S. Godara)

Section 14ASection 250Section 80

…ing standard and the decisions of the Tribunal rendered in the cases of Mazagaon Dock Ltd. v. Jt. CIT [20091 29 SOT 356 (Mum.) and Jacobs Engg. India (P.) Ltd. v. Asstt. CIT [201II 14 taxmann.com 166 (Mum.) and Dredging International v. Asstt. D1T (IT) 1201II 48 SOT 430/15 laxmann.com 198 (Mum.), the Assessing Officer was to be directed to recompute the business profits by allowing the losses provided by the assessee in its books. [Para 19] The salient features emerging from the above discussion are as follows: 1. The contract should be fixed price contracts. 2. The contractor is liable to claim foreseeable losse…

M/S. Spml Infra Limited, Kolkata vs. DCIT, Circle - 8(2), Kolkata

In the result, the appeal of the assessee in ITA No

ITA 1228/KOL/2018[2011-12]Status: DisposedITAT Kolkata17 Jan 2020AY 2011-12

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1228/Kol/2018 ("नधा"रणवष" / Assessment Year:2011-12)

For Appellant: Shri S.K. Tulsiyan, Advocate & Ms. Lata Goyal, ACAFor Respondent: Shri Radhey Shyam, CIT
Section 263

…ze the expected losses (i.e. difference between the contract revenue and total contract costs). enue and total contract costs). We note that Coordinate Bench of ITAT We note that Coordinate Bench of ITAT Mumbai in case of Dredging International N.V. vs. ADIT [48 SOT 430] in case of Dredging International N.V. vs. ADIT [48 SOT 430] in case of Dredging International N.V. vs. ADIT [48 SOT 430] held that any provision for losses recognized in accordance with AS any provision for losses recognized in accordance with AS-7 is allowable under 7 is allowable under the Act. The Findings of the . The Findings of the Coordin…

DCIT, Circle - 8(2), Kolkata vs. M/S. Spml Infra Limited, Kolkata

In the result, the appeal of the assessee in ITA No

ITA 1211/KOL/2018[2011-12]Status: DisposedITAT Kolkata17 Jan 2020AY 2011-12

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1228/Kol/2018 ("नधा"रणवष" / Assessment Year:2011-12)

For Appellant: Shri S.K. Tulsiyan, Advocate & Ms. Lata Goyal, ACAFor Respondent: Shri Radhey Shyam, CIT
Section 263

…ze the expected losses (i.e. difference between the contract revenue and total contract costs). enue and total contract costs). We note that Coordinate Bench of ITAT We note that Coordinate Bench of ITAT Mumbai in case of Dredging International N.V. vs. ADIT [48 SOT 430] in case of Dredging International N.V. vs. ADIT [48 SOT 430] in case of Dredging International N.V. vs. ADIT [48 SOT 430] held that any provision for losses recognized in accordance with AS any provision for losses recognized in accordance with AS-7 is allowable under 7 is allowable under the Act. The Findings of the . The Findings of the Coordin…

Assistant Commissioner of Income Tax 25(3), Mumbai vs. S. S. Enterprises, Mumbai

In the result, the appeal is allowed

ITA 2649/MUM/2018[2014-15]Status: DisposedITAT Mumbai28 Oct 2019AY 2014-15

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2014-15

For Appellant: Mr. Vijay Mehta & Mr. Govind Javeri, ARFor Respondent: Mr. Chaudhary Arun Kumar Singh, DR
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G” MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2014-15 Asst. Commissioner of M/s SS Enterprises, Ground floor, Income Tax-25(3), Room Chandra Villa, Nehru Road, Vile Vs. No. 01, C-10, 6th floor, Parle (E), Mumbai-400057. Pratyakshkar Bhavan, Bandra Kurla Complex, Bandra (East), Mumbai- 400051. PAN No. AADFS4279G Appellant Respondent Revenue by : Mr. Chaudhary Arun Kumar Singh, DR Assessee by : Mr. Vijay Mehta & Mr. Govind Javeri, AR Date of Hearing : 01/08/2019 Date of pronouncement : 28/10/20…

Toyo Enggineering India Ltd, Mumbai vs. Addl CIT RG 10(3), Mumbai

ITA 6219/MUM/2014[2009-10]Status: DisposedITAT Mumbai04 Apr 2018AY 2009-10
For Appellant: S/Shri M.P. Lohia and Nikhil TiwariFor Respondent: Shri M.V. Rajguru –Sr.DR
Section 145Section 254(1)

…section 211 of the Companies Act and stated that the FAA had allowed the disputed amount in the succeeding year. He relied upon the cases of Woodward Governor (312 ITR 254),Jacobs Engineering India Private Ltd.(14 taxmann.com 186), Dredging International NV (48 SOT 430) and ITD Cementation India Ltd.(146 ITD 59).The Departmental Representative(DR)supported the order of the FAA. 3.3.We have heard the rival submissions and perused the material before us.We find that vide its letter is dated 11/10/2012,01/11/201 and 29/01/2013,the assessee had made detailed submissions about applicability of AS-7,that it had argued…

DCIT, Circle - 1, Kolkata vs. M/S. Mcnally Bharat Engineering Company Limited, Kolkata

In the result, appeal of revenue stands dismissed

ITA 99/KOL/2011[2003-04]Status: DisposedITAT Kolkata11 Jan 2017AY 2003-04

Bench: Shri Waseem Ahmed, Am & Shri S.S.Viswanethra Ravi, Jm आयकर अपील सं./Ita No.99/Kol/2011 ("नधा"रण वष" / Assessment Year :2003-2004) Dcit, Circle-1, Vs. M/S Mcnally Bharat 7Th Floor, Aayakar Bhawan, Engineering Company Ltd, Kolkata-700069 4, Mangoe Lane,Kolkata-1 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcm 9443 R .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Ram Bilas Meena, Cit "नधा"रती क" ओर से /Assessee By : Shri Vijay Shah Ca सुनवाई क" तार"ख / Date Of Hearing : 21/12/2016 घोषणा क" तार"ख/Date Of Pronouncement 11/01/2017 आदेश / O R D E R Per Shri Waseem Ahmed, Am: The Above Appeal Is Directed By The Revenue Against The Order Dated 20.09.2010, Passed By The Ld. Commissioner Of Income Tax (Appeals)-I, Kolkata In Appeal No.605/Cit(A)-1/Cir.1/.09-10, Pertaining To Assessment Year 2003-04, Arising Out Of Assessment Order Dated 31.12.2009, Passed By The Cit-1 Kolkata U/S.143(3)/254 Of The Income Tax Act, 1961. The Revenue Has Raised The Following Grounds Of Appeal :-

For Appellant: Shri Vijay Shah CAFor Respondent: Shri Ram Bilas Meena, CIT
Section 143(3)Section 37

…xecuting an infrastructure development fixed price contract, the foreseeable losses of future years can be recognized following the rationale of AS-7 issued by ICAl, and such a Provision is an allowable deduction.” 3. Dredging International -vs.- ADIT (2011) 48 SOT 430 (Mum) “Assessee's claim for provision for loss, which was made in accordance with guidelines of AS-7 and duly debited in the audited accounts of the company is an allowable expenditure.” 4. Jacobs Engineering Pvt Ltd -vs.- ACIT (2009) 30 DTR 614 (Mum) “Since the foreseeable losses were provided in the books in accordance with AS-7 which is mand…

166 (Mum.) and Dredging International v. Asstt. D1T (IT) 1201II (48 SOT 430) — Cited in 14 Judgments | BharatTax