277(D- E) and CIT v. U.P. State Industrial Development Corporation

225 ITR 703Supreme Court of India1997#2332 most cited

What is 277(D- E) and CIT v. U.P. State Industrial Development Corporation authority for?

The ordinary principles of commercial accounting should be applied for ascertaining profits and gains, provided they do not contradict the Income-tax Act.

49

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2009 to 2025.

Also referred to as

CIT v. U.P. State Industrial Development Corporation · 225 ITR 703 · ascertain profits and gains · ordinary principles of commercial accounting · substance over form · accounting principles

Sections most often in play

Section 37(1)Section 143(3)Section 14ASection 8DSection 35ABBSection 10(34)Section 115JBSection 2(19AA)

Issues it is cited on

section 43(6)(c)section 80lacompensatory interestsection 72asection 55(2)section 2(15a)section 35abbsubstance over formsection 80ltransferee companysection 17(2)(iiia)section 49

Judgments citing 277(D- E) and CIT v. U.P. State Industrial Development Corporation

Asst CIT 16(3), Mumbai vs. K.P. Sanghvi & Sons, Mumbai

In the result, the appeal of the revenue is dismissed

ITA 4588/MUM/2014[2009-10]Status: DisposedITAT Mumbai29 Sept 2016AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am The Asst. Commissioner Of Vs. M/S K P Sanghvi & Sons, Income Tax -16(3), Matru 1301, Prasad Chambers, Mandir, Tardeo Road, Operahouse,Mumbai-4 Mumbai-400007 Pan:Aaafk8390F .. Appellant Respondent Appellant By .. Sri R P Meena Respondent By .. Sri K Shivram Date Of Hearing .. 29-09-2016 Date Of Pronouncement .. 29 -09- 2016 O R D E R Per Mahavir Singh, Jm: This Appeal By The Revenue Is Arising Out Of The Order Of The Cit (Appeals)-27, Mumbai In Appeal No.Cit(A)-27/Ac-16(3)/135/13-14 Dated 22.4.2014. Assessment Was Framed By The Acit- Circle 16(3), Mumbai For The Assessment Year 2009-10 Vide His Order Dated 28.3.2013 U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter “The Act”).

Section 143(3)

….4.14 In fact, even if the losses are allowed in the year of realisation of export proceeds that would tantamount to following cash system of accounting which will be contrary to section 145(1) of the Act-- CIT v. UP State Industrial Development Corpn. [1997] 225 ITR 703/92 Taxman 4-5 (SC). 2.4.15 Similarly, as pleaded earlier, in the case of Dy. CIT (International Taxation) v. Bank of Bahrain & Kuwait [2010] 41 SOT 290 , Hon'ble Special Bench of Mumbai Tribunal held that losses incurred by the appellant on account of revaluation of the contract on the last date of the relevant accounting period based on the RBI…

ACIT, New Delhi vs. M/S. Ge Capital Transportation Financial Services Ltd., New Delhi

In the result, appeal filed by Revenue is dismissed and that of the assessee is partly allowed

ITA 767/DEL/2011[2002-03]Status: DisposedITAT Delhi27 Jul 2016AY 2002-03

Bench: Shri G. D. Agrawal, Hon’Ble & Smt. Beena A. Pillai

For Appellant: Shri Tushar Jarwal, AdvFor Respondent: Shri T Vasanthan, Sr. DR
Section 143(1)Section 143(3)

…Jurisdictional High Court which are as under: i) K.L. Johar & Co. Vs DCIT (1965) 16 STC 213 (S.C.); ii) P Mohammed Meerakhan Vs CIT (1969) 73 ITR 735 (S.C.); iii) CIT Vs Basti Sugar Mills Co. Ltd. 257 ITR 88 (Del.); iv) CITVs U P Stat Industrial Corpn. (1997) 225 ITR 703 (S.C.); v) Challapalli Sugars Ltd. Vs CIT (1975) 98 ITR 167 (S.C.); vi) Kedarnath Jute Mfg. Co. Ltd. 82 ITR 363 (S.C.) 7.11 Ld. A.R. submitted that the decision relied upon by the Ld. D.R. in case of Motor & General Sales (P) Ltd. vs CIT (supra) is distinguishable as the case deals with 11 I.T.A.No.763,514/Del/2011 assessment year 1968-69, whic…

Ge Capital Services India, New Delhi vs. DCIT, New Delhi

In the result, appeal filed by Revenue is dismissed and that of the assessee is partly allowed

ITA 514/DEL/2011[2002-03]Status: DisposedITAT Delhi27 Jul 2016AY 2002-03

Bench: Shri G. D. Agrawal, Hon’Ble & Smt. Beena A. Pillai

For Appellant: Shri Tushar Jarwal, AdvFor Respondent: Shri T Vasanthan, Sr. DR
Section 143(1)Section 143(3)

…Jurisdictional High Court which are as under: i) K.L. Johar & Co. Vs DCIT (1965) 16 STC 213 (S.C.); ii) P Mohammed Meerakhan Vs CIT (1969) 73 ITR 735 (S.C.); iii) CIT Vs Basti Sugar Mills Co. Ltd. 257 ITR 88 (Del.); iv) CITVs U P Stat Industrial Corpn. (1997) 225 ITR 703 (S.C.); v) Challapalli Sugars Ltd. Vs CIT (1975) 98 ITR 167 (S.C.); vi) Kedarnath Jute Mfg. Co. Ltd. 82 ITR 363 (S.C.) 7.11 Ld. A.R. submitted that the decision relied upon by the Ld. D.R. in case of Motor & General Sales (P) Ltd. vs CIT (supra) is distinguishable as the case deals with 11 I.T.A.No.763,514/Del/2011 assessment year 1968-69, whic…

The Bombay Dyeing & Mfg Co. Ltd, Mumbai vs. DCIT (Hq) 2, Mumbai

In the result, the assessee’s appeals are partly allowed for statistical purposes

ITA 7329/MUM/2010[2004-05]Status: DisposedITAT Mumbai07 Apr 2016AY 2004-05

Bench: Shri R. C. Sharma, Am & Shri Mahavir Singh, Jm आयकर अपील सं./I.T.A. Nos. 7329 & 7330/Mum/2010 ("नधा"रण वष" / Assessment Years: 2004-05 & 2005-06 The Bombay Dyeing & Mfg. Co. Dy. Cit (H.Q.)-2, Ltd. Aayakar Bhavan, Mumbai बनाम/ Neville House, J. N. Heredia Marg, Vs. Ballard Estate, Mumbai-400 001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaact 2328 K (अपीलाथ" /Appellant) (""यथ" / Respondent) : : Shri Yoghesh A. Thar & अपीलाथ" क" ओर से / Appellant By Shri Fenil Bhatt : Shri Sanjeev Jain ""यथ" क" ओर से/Respondent By सुनवाई क" तार"ख / : 28.03.2016 Date Of Hearing घोषणा क" तार"ख / : 07.04.2016 Date Of Pronouncement आदेश / O R D E R Per Mahavir Singh, Jm: This Is A Set Of Two Appeals By Assessee Are Arising Out Of Separate Orders Of Cit(A)-Iv, Mumbai In Appeal Nos. Cit(A)4/Dc(Hq)-2/It-26/06-07 & Cit(A)4/Addl.Cit-2(1)/It-293/08-09 Both Dated 28.09.2010. Assessments Were Framed Separately By Dcit, (Hq)-2, Mumbai For Ay 2004-05 & Addl. Cit, Range-2(1), Mumbai For Ay 2005-06 Respectively U/S. 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) Vide His Orders Dated 29.12.2006 & 31.12.2008. 2

Section 143(3)

…is adopted, even though no payment has been made, which is claimed to have been during the subsequent year, is undisputed and not in issue. Reference, therefore, to the decision by the apex court in CIT vs. U.P.State Industrial Development Corporation [1997] 225 ITR 703 (SC) would be of no moment. The question is of the basis on which it could be said or concluded that expenditure to that extent had in fact accrued, and which we find as wanting. The burden to prove its return, as well as claims preferred thereby, is only on the assessee, and which we find as not discharged to that extent. It may also be clarifie…

Commissioner of Income Tax vs. Insilco Ltd

In the result, the question of law framed by us is answered in favour

ITA/873/2008HC Delhi27 Feb 2009

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred To As The „Cit(A)‟] Allowing Deduction On Account Of Provision Made By

For Appellant: Ms Prem Lata Bansal, Mr Sanjeev Rajpal & Mr MohanFor Respondent: Mr V.P. Gupta & Mr Basant Kumar

…principles of accountancy by the courts has also found favour in the judgments of the Supreme Court in the cases of CIT vs Indo Nippon Chemicals Co ltd; (2003) 261 ITR 275 at page 277 (D – E) & CIT vs U.P. State Industrial Development Corporation; (1997) 225 ITR 703 and also the judgment of a Division Bench of this Court in CIT vs Woodward Governor India P Ltd; (2007) 294 ITR 451 at page 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow:- “In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant cas…

Commissioner of Income Tax-IV, New Delhi vs. Insilco Limited

In the result, the question of law framed by us is answered in favour

ITA-1156/2008HC Delhi27 Feb 2009

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred 2009:Dhc:678-Db

For Appellant: Ms Prem Lata Bansal, Mr Sanjeev Rajpal & Mr MohanFor Respondent: Mr V.P. Gupta & Mr Basant Kumar

…principles of accountancy by the courts has also found favour in the judgments of the Supreme Court in the cases of CIT vs Indo Nippon Chemicals Co ltd; (2003) 261 ITR 275 at page 277 (D – E) & CIT vs U.P. State Industrial Development Corporation; (1997) 225 ITR 703 and also the judgment of a Division Bench of this Court in CIT vs Woodward Governor India P Ltd; (2007) 294 ITR 451 at page 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow:- “In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant cas…

Commissioner of Income Tax-IV, New Delhi vs. Insilco Limited

In the result, the question of law framed by us is answered in favour

ITA-873/2008HC Delhi27 Feb 2009

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred 2009:Dhc:679-Db

For Appellant: Ms Prem Lata Bansal, Mr Sanjeev Rajpal & Mr MohanFor Respondent: Mr V.P. Gupta & Mr Basant Kumar

…principles of accountancy by the courts has also found favour in the judgments of the Supreme Court in the cases of CIT vs Indo Nippon Chemicals Co ltd; (2003) 261 ITR 275 at page 277 (D – E) & CIT vs U.P. State Industrial Development Corporation; (1997) 225 ITR 703 and also the judgment of a Division Bench of this Court in CIT vs Woodward Governor India P Ltd; (2007) 294 ITR 451 at page 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow:- “In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant cas…

Commissioner of Income Tax vs. Insilco Limited

In the result, the question of law framed by us is answered in favour

ITA - 1156 / 2008HC Delhi27 Feb 2009

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred 2009:Dhc:678-Db

For Appellant: Ms Prem Lata Bansal, Mr Sanjeev Rajpal & Mr MohanFor Respondent: Mr V.P. Gupta & Mr Basant Kumar

…principles of accountancy by the courts has also found favour in the judgments of the Supreme Court in the cases of CIT vs Indo Nippon Chemicals Co ltd; (2003) 261 ITR 275 at page 277 (D – E) & CIT vs U.P. State Industrial Development Corporation; (1997) 225 ITR 703 and also the judgment of a Division Bench of this Court in CIT vs Woodward Governor India P Ltd; (2007) 294 ITR 451 at page 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow:- “In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant cas…

Commissioner of Income Tax vs. Insilco Ltd

In the result, the question of law framed by us is answered in favour

ITA - 873 / 2008HC Delhi27 Feb 2009

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred 2009:Dhc:679-Db

For Appellant: Ms Prem Lata Bansal, Mr Sanjeev Rajpal & Mr MohanFor Respondent: Mr V.P. Gupta & Mr Basant Kumar

…principles of accountancy by the courts has also found favour in the judgments of the Supreme Court in the cases of CIT vs Indo Nippon Chemicals Co ltd; (2003) 261 ITR 275 at page 277 (D – E) & CIT vs U.P. State Industrial Development Corporation; (1997) 225 ITR 703 and also the judgment of a Division Bench of this Court in CIT vs Woodward Governor India P Ltd; (2007) 294 ITR 451 at page 463-464 (paras 15-16). The observations of UPSIDC being apposite are extracted hereinbelow:- “In our opinion, this contention is devoid of force. The accounting practice followed by the assessee in the instant cas…