2. ACIT v. W.S.lndustries (India) Private Limited (128 ITD 98)

METSO OYJ,FINLAND vs. ASSISTANT COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION), CIRCLE-1(2), KOLKATA

In the result, the appeal filed by the assessee is dismissed and the order of the Ld

ITA 616/KOL/2025[2022-23]Status: DisposedITAT Kolkata25 Aug 2025AY 2022-23

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 143(3)Section 144C(13)Section 144C(5)Section 234BSection 270ASection 56Section 9

…urt held that the guarantee was given in the ordinary course of the assessee’s business activities. 27. Further, the Hon’ble Chennai ITAT in the case of Assistant Commissioner of Income-tax, Company Circle HI (3), Chennai v. W.S. Industries (India) Ltd [2011] 128 ITD 98 (Chennai) held as under:- 13. “It was further found that in the articles and memorandum of association of the assessee, it had been clearly mentioned that it was one of the assessee’s business to give guarantees-financial or otherwise and/or to provide security to any person either on behalf of the company or on behalf of others on such terms and…

SOUTHERN PETROCHEMICAL INDUSTRIES CORPORATION LIMITED,CHENNAI vs. ACIT CORPORATE CIRCLE 6(2), CHENNAI

The appeal stands partly allowed in terms of our above order

ITA 2635/CHNY/2019[2016-17]Status: DisposedITAT Chennai10 Jan 2024AY 2016-17

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.2635/Chny/2019 (िनधा)रण वष) / Assessment Year: 2016-17) M/S. Southern Petrochemical Acit बनाम Industries Corporation Limited Corporate Circle -6(2) 88, Spic House, Mount Road, Guindy, Chennai-600 034. / Vs. Chennai-600 032. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacs-4668-K (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri R. Vijayaraghavan & Shri Saroj Kumar Parida (Advocates)-Ld. Ars " थ"कीओरसे/Respondent By : Shri Nilay Baran Som (Cit) & Shri Ar V Sreenivasan (Addl. Cit)-Ld. Drs सुनवाईकीतारीख/Date Of Hearing : 16-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 10-01-2024 आदेश / O R D E R

For Appellant: Shri R. Vijayaraghavan & Shri Saroj KumarFor Respondent: Shri Nilay Baran Som (CIT) &

Section 143(3)

…or 2016-17. 3.6 The Appellant relies on the Decision of the Supreme Court in CIT vs Amalgamation Pvt. Ltd. 140 CTR 313/ 226 ITR 188 (SC) and the decisions in (a) ACIT vs M/s Peirce Leslie India Ltd I.T.A. No. 1244/Mds/2011 (b) W.S. Industries (India) Limited 128 ITD 98 As is evident, the additions / disallowance which forms the subject matter of this appeal are i.e., (i) Disallowance of bad debts written-off; (ii) Disallowance of settlement expenditure. 2. The Ld. AR advanced arguments on impugned issues citing various judicial decisions and also filed written submissions to support the case of the assessee. Th…

ACIT, CIRCLE KARNAL, KARNAL vs. LIBERTY SHOES LTD., KARNAL

ITA 7126/DEL/2017[2012-13]Status: DisposedITAT Delhi19 Jul 2023AY 2012-13

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaita No. 7126/Del/2017, A.Y. 2012-13 Acit, Vs. M/S. Liberty Shoes Ltd., 13Th Circle, Karnal Mile Stone, Liberty Puram G.T.Road, Bastara, Kutail, Distt. Karnal. Pan : Aaacl3146K (Appellant) (Respondent)

Section 143(1)Section 143(2)Section 143(3)Section 37Section 37(1)

…observed that the Joint Venture had a backing of the assessee and its partners. Ld. CIT(A) has relied the judgment in CIT vs. Delhi Safe Deposit Company Ltd. (1982) 133 ITR 756 (SC) and ACIT, Circle 3 Chennai vs. WS Industries India Ltd. ITAT, Chennai, 2011, 128 ITD 98 which was distinguished by ld. AO. 9. The case of assessee is that in order to create dominant position in the retail market the joint venture was incorporated and being promoters the corporate guarantees were extended for the credit facilities received for the joint venture company. It appears that Ld. AO had fallen in error in not appreciating t…

THE DCIT, CIRCLE-4,, AHMEDABAD vs. GHCL LIMITED, AHMEDABAD

ITA 976/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad05 Mar 2021AY 2009-10

For Appellant: Shri S. N. Soparkar, Sr. A.R. &For Respondent: Shri Mohd. Usman, CIR-D.R. &

Section 143(2)Section 144C(2)(b)Section 144C(5)Section 14ASection 37(1)Section 92C

…any were in the course of assessee’s business and the claim for allowance of the loss sustained by the assessee was therefore admissible u/s. 10(2)(xi) of the Act, 1922. The Co-ordinate Bench of ITAT, Chennai in the case of ACIT vs. W.S. Industries India Ltd. 128 ITD 98 has held that giving corporate guarantee was not only one of the objects of the assessee company but the same was given for its subsidiary company and it was in the interest of the assessee company and for commercially expedient decision. We have also perused the other judicial pronouncements referred by the ld. counsel. I.T.A Nos. 976/Ahd/2014 &…

GHCL LIMITED,AHMEDABAD vs. THE DY.CIT., CIRCLE-4,, AHMEDABAD

ITA 1042/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad05 Mar 2021AY 2009-10

For Appellant: Shri S. N. Soparkar, Sr. A.R. &For Respondent: Shri Mohd. Usman, CIR-D.R. &

Section 143(2)Section 144C(2)(b)Section 144C(5)Section 14ASection 37(1)Section 92C

…any were in the course of assessee’s business and the claim for allowance of the loss sustained by the assessee was therefore admissible u/s. 10(2)(xi) of the Act, 1922. The Co-ordinate Bench of ITAT, Chennai in the case of ACIT vs. W.S. Industries India Ltd. 128 ITD 98 has held that giving corporate guarantee was not only one of the objects of the assessee company but the same was given for its subsidiary company and it was in the interest of the assessee company and for commercially expedient decision. We have also perused the other judicial pronouncements referred by the ld. counsel. I.T.A Nos. 976/Ahd/2014 &…

SAKTHI SUGARS LIMITED,CHENNAI vs. DCIT, COIMBATORE

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

ITA 866/CHNY/2016[2010-11]Status: DisposedITAT Chennai23 Jun 2017AY 2010-11

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddyआयकरअपीलसं./I.T.A.Nos. 866/Mds/2016 ("नधा"रणवष" / Assessment Year: 2010-11) Vs The Deputy Commissioner Of M/S. Sakthi Sugars Limited, 180, Race Course Road, Income Tax, Coimbatore – 641 018. Corporate Circle – 1, Coimbatore Pan: Aadcs0651B (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकरअपीलसं./I.T.A.Nos. 1107/Mds/2016 ("नधा"रणवष" / Assessment Year: 2010-11) Vs M/S. Sakthi Sugars Limited, The Deputy Commissioner Of Income Tax, 180, Race Course Road, Corporate Circle – 1, Coimbatore – 641 018. Coimbatore Pan: Aadcs0651B (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri R.Vijayaraghavan, Advocate "नधा"रती क" ओर से /Assessee By : Smt. Jayanthi Krishnan, Cit राज"व क" ओर से /Revenue By Shri A.V. Sreekanth, Jcit : 25.04.2017 सुनवाईक"तार"ख/Date Of Hearing : 23.06.2017 घोषणाक"तार"ख /Date Of Pronouncement

For Appellant: Smt. Jayanthi Krishnan, CIT

Section 143(3)Section 14ASection 250(6)

…icial pronouncements, wherein the ITAT/High Court have held that discharge of corporate guarantee is a business expenditure allowable u/ s 37. 1. CIT vs Rudra Industrial Commercial Corporation 20 taxmann.Com 2. ACIT Vs. W.S.lndustries (India) Private Limited 128 ITD 98 (Chennai)" 6.1 After examining the issue, the Ld.AO rejected the claim of expenditure of Rs.19.2 crores because of the following reasons:- 1) The assessee is not in the business of providing bank guarantee and it was only in the business of manufacturing sugar, industrial alcohol, generation of power and manufacturing soya products. 2) The relat…

DCIT, COIMBATORE vs. SAKTHI SUGARS LIMITED, COIMBATORE

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

ITA 1107/CHNY/2016[2010-11]Status: DisposedITAT Chennai23 Jun 2017AY 2010-11

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddyआयकरअपीलसं./I.T.A.Nos. 866/Mds/2016 ("नधा"रणवष" / Assessment Year: 2010-11) Vs The Deputy Commissioner Of M/S. Sakthi Sugars Limited, 180, Race Course Road, Income Tax, Coimbatore – 641 018. Corporate Circle – 1, Coimbatore Pan: Aadcs0651B (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकरअपीलसं./I.T.A.Nos. 1107/Mds/2016 ("नधा"रणवष" / Assessment Year: 2010-11) Vs M/S. Sakthi Sugars Limited, The Deputy Commissioner Of Income Tax, 180, Race Course Road, Corporate Circle – 1, Coimbatore – 641 018. Coimbatore Pan: Aadcs0651B (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri R.Vijayaraghavan, Advocate "नधा"रती क" ओर से /Assessee By : Smt. Jayanthi Krishnan, Cit राज"व क" ओर से /Revenue By Shri A.V. Sreekanth, Jcit : 25.04.2017 सुनवाईक"तार"ख/Date Of Hearing : 23.06.2017 घोषणाक"तार"ख /Date Of Pronouncement

For Appellant: Smt. Jayanthi Krishnan, CIT

Section 143(3)Section 14ASection 250(6)

…icial pronouncements, wherein the ITAT/High Court have held that discharge of corporate guarantee is a business expenditure allowable u/ s 37. 1. CIT vs Rudra Industrial Commercial Corporation 20 taxmann.Com 2. ACIT Vs. W.S.lndustries (India) Private Limited 128 ITD 98 (Chennai)" 6.1 After examining the issue, the Ld.AO rejected the claim of expenditure of Rs.19.2 crores because of the following reasons:- 1) The assessee is not in the business of providing bank guarantee and it was only in the business of manufacturing sugar, industrial alcohol, generation of power and manufacturing soya products. 2) The relat…

2. ACIT v. W.S.lndustries (India) Private Limited

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