51 ITD 322)(Delhi) (c) CIT vs. Dr. V.K. Gopinathan (2001)(116 Taxman 489)(SC) (d) Addl. CIT v. Madras Fertilisers Ltd.

122 ITR 139High Court1980#14768 most cited

judgments rely on this decision, according to BharatTax’s citation analysis of 344,197 Indian tax judgments — from 2021 to 2024.

Sections most often in play

Section 24 Section 37(1)Section 57(iii)

Issues it is cited on

section 57 section 143(3)total income business interest

Judgments citing 51 ITD 322)(Delhi) (c) CIT vs. Dr. V.K. Gopinathan (2001)(116 Taxman 489)(SC) (d) Addl. CIT v. Madras Fertilisers Ltd.

Raj Kumar Kandoi, Jaipur vs. ACIT Central Circle 3, 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

…since the expenditure must have been incurred for the purpose of 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…

Jatinder Kumar Suri, New Delhi vs. DCIT, Circle- 3(1)(2), International Taxation, New Delhi

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

ITA 6808/DEL/2017[2013-14]Status: DisposedITAT Delhi01 Feb 2023AY 2013-14

Bench: N.K. Billaiya & Ms. Astha Chandraasstt. Year: 2013-14

For Appellant: NoneFor Respondent: Shri Vivek Vardhan, Sr. DR

Section 194JSection 44ASection 69C

…ons holding that it is essential to establish nexus in order to allow an expenditure claimed under section 57(iii) of the Act which is lacking in the case of the assessee. He quoted the decision of Hon’ble Madras High Court in Addl. CIT vs. Madras Fertilizers 122 ITR 139 (Mad.); Hon’ble Calcutta High Court decision in CIT vs. New Central Jute Mills Co. Ltd. 118 ITR 1005(Cal.) as also the decision of Hon’ble Supreme Court in V.P. Gopinathan 248 ITR 449(SC). Following the decisions (supra), the Ld. CIT(A) recorded his finding in para 5.9 of his order as under:- “5.9 It is clearly seen that the aforesaid decisions…

Varun Khandelwal, Mumbai vs. PCIT, Mumbai-2, Mumbai

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

ITA 1963/MUM/2021[2015-16]Status: DisposedITAT Mumbai30 Jun 2022AY 2015-16

Section 143(3)Section 263

…following case law:- (a) Akansha Ranju Pilani vs. ITO (2015)(53 taxmann.com 158)(Mum) (b) Continental Float glass Ltd vs. ACIT (1994)(51 ITD 322)(Delhi) (c) CIT vs. Dr. V.K. Gopinathan (2001)(116 Taxman 489)(SC) (d) Addl. CIT vs. Madras Fertilisers Ltd (1980)(122 ITR 139)(Mad). He submitted that in all these case laws, the interest expenditure has been held to be not allowable against interest income. 8. The Ld A.R, in the rejoinder, submitted that in all the cases relied upon by Ld D.R, direct nexus between borrowed funds and loans given were not proved. However, in the instant case, direct nexus has been prov…

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

…eed not be direct and it may be indirect. But, since the expenditure 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 cla…

Income Tax Officer, Ward-17(2), Hyderabad vs. Elgen (India) Private Limited, Hyderabad

In the result, appeal of the revenue is allowed

ITA 244/HYD/2019[2015-16]Status: DisposedITAT Hyderabad30 Apr 2021AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahuassessment Year: 2015-16 Income-Tax Officer, Vs. Elgen (India) Pvt Ltd., Ward - 17(2), Hyderabad. Hyderabad. Pan – Aaace 8520C (Appellant) (Respondent) Revenue By: Shri Rohit Mujumdar Assessee By: Shri M. Poorna Chander Rao Date Of Hearing: 15/03/2021 Date Of Pronouncement: 30/04/2021

For Appellant: Shri M. Poorna Chander RaoFor Respondent: Shri Rohit Mujumdar

Section 143(3)

…raised by him in this appeal. He submitted that neither of the four authorities, viz., Madhya Pradesh State Industries Corpn. Ltd. v. CIT [1968] 69 ITR 824 (MP), Traco Cable Co. Ltd. v. CIT [1969] 72 ITD 503 (Ker.), Addl. CIT v. Madras Fertilisers Ltd. [1980] 122 ITR 139 (Mad.) and Collis Line (P.) Ltd. v. ITO [1982] 135 ITR 390 (Ker,) dealt with the question posed herein. It was also submitted. that the :- 15 -: Elgen (India) Pv. Ltd., Hyd. Special Bench of the Tribunal at Madras in the case of Arasan Aluminium Industries (P.) Ltd. (supra) had considered the Madras High Court's decision in Madras Fertilisers Lt…

Shri Rameshwar Lal Samdani, Bhilwara vs. ITO, Bhilwara

In the result, the appeal of the assessee is allowed

ITA 264/JODH/2017[2013-14]Status: DisposedITAT Jodhpur28 Jan 2021AY 2013-14

Bench: Shri Sandeep Gosain & Shri Manoj Kumar Aggarwalshri Rameshwar Lal Samdani, Vs. I.T.O., D-43, Shastri Nagar, Bhilwara Ward-3, (Raj)-311001. Bhilwara. Pan No. Adqps 6311 K Assessee By Shri Ajay Moondra Revenue By Shri K.C. Badhok, Cit-Dr Date Of Hearing 03.11.2020 Date Of Pronouncement 29/01/2021

Section 143(3)Section 56Section 57

…but in the present case the expenditure here to made and incurred for the earning of income directly so the nexus between the expenditure and earning of the income as interest well proved well decided in the case of Addl.CIT V/s Madras Fertilisers Ltd (1980) 122 ITR 139 (Mad.), Vijaya Laxmi Sugar Mills Ltd V/s CIT (1991) 191 1TR 641 (SC), CIT 10 ITA 264/Jodh/2017 Sh. Rameshwar Lal Samdani Vs ITO V/s Dwarka Chit Funds P Ltd (1996) 132 Taxation 109 (Mad.), CIT V/s K P Madan Mohan (1997) 136 taxation 506 (Mad.). 12. In view of the above facts and circumstances, discussion made above and the case laws relied upon,…