65 ITR 381 (SC); S. A. Builders v. CIT

224 CTR 32Supreme Court of India#7754 most cited

What is 65 ITR 381 (SC); S. A. Builders v. CIT authority for?

Expenditure must be judged from the perspective of a prudent businessman, not the revenue authorities. Revenue cannot substitute its own judgment for that of the businessman regarding the reasonableness of expenditure.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2017 to 2025.

Also referred to as

S. A. Builders v. CIT · 65 ITR 381 · business expenditure · commercial expediency · prudent businessman · revenue authorities · reasonableness of expenditure · section 37

Sections most often in play

Section 115BBESection 37Section 69ASection 69CSection 148Section 151Section 143(3)Section 148A

Issues it is cited on

section 282a(1)section 65asection 282asection 140apurposive interpretationreal income theorysection 140faceless assessment schemeapproval under section 151section 65bsection 65section 282

Judgments citing 65 ITR 381 (SC); S. A. Builders v. CIT

DCIT, Mumbai vs. J Kumar Infraprojects Limited, Mumbai

The Appeal of the Assessee is partly allowed and that of the department is dismissed

ITA 4593/MUM/2024[2017-18]Status: DisposedITAT Mumbai03 Jul 2025AY 2017-18

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankar

Section 250Section 69A

…s the benefits accrued to it by retaining the key employees. As held by various decisions including that of Hon’ble Supreme Court in CIT v. Walchand & Co. P. Ltd. [1967] 65 ITR 381 (SC); S. A. Builders v. CIT [2007] 288 ITR 1 (SC); Udaiput Distillery Co. Ltd. 224 CTR 32 (SC); J.K. Woollen Manufacturing v. CIT (1969) 72 ITR 612 (SC) have held that the expenditure incurred have to be adjudged from the point of view of businessmen and not the revenue. The revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how m…

DCIT CC 5-1, Mumbai vs. J Kumar Infraprojects Limited, Mumbai

The Appeal of the Assessee is partly allowed and that of the department is dismissed

ITA 4591/MUM/2024[2018-19]Status: DisposedITAT Mumbai03 Jul 2025AY 2018-19

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankar

Section 250Section 69A

…s the benefits accrued to it by retaining the key employees. As held by various decisions including that of Hon’ble Supreme Court in CIT v. Walchand & Co. P. Ltd. [1967] 65 ITR 381 (SC); S. A. Builders v. CIT [2007] 288 ITR 1 (SC); Udaiput Distillery Co. Ltd. 224 CTR 32 (SC); J.K. Woollen Manufacturing v. CIT (1969) 72 ITR 612 (SC) have held that the expenditure incurred have to be adjudged from the point of view of businessmen and not the revenue. The revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how m…

DCIT CC 5 1 Mumbai, Mumbai vs. J Kumar Infraprojects Ltd, Mumbai

ITA 4590/MUM/2024[2019-20]Status: DisposedITAT Mumbai03 Jul 2025AY 2019-20

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankar

Section 250Section 69A

…s the benefits accrued to it by retaining the key employees. As held by various decisions including that of Hon’ble Supreme Court in CIT v. Walchand & Co. P. Ltd. [1967] 65 ITR 381 (SC); S. A. Builders v. CIT [2007] 288 ITR 1 (SC); Udaiput Distillery Co. Ltd. 224 CTR 32 (SC); J.K. Woollen Manufacturing v. CIT (1969) 72 ITR 612 (SC) have held that the expenditure incurred have to be adjudged from the point of view of businessmen and not the revenue. The revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how m…

J Kumar Infraprojects Limited, Mumbai vs. The Dy Commissioner of Income Tax Central Circle -5(1), Mumbai

The Appeal of the Assessee is partly allowed and that of the department is dismissed

ITA 4153/MUM/2024[2020-21]Status: DisposedITAT Mumbai03 Jul 2025AY 2020-21

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankar

Section 250Section 69A

…s the benefits accrued to it by retaining the key employees. As held by various decisions including that of Hon’ble Supreme Court in CIT v. Walchand & Co. P. Ltd. [1967] 65 ITR 381 (SC); S. A. Builders v. CIT [2007] 288 ITR 1 (SC); Udaiput Distillery Co. Ltd. 224 CTR 32 (SC); J.K. Woollen Manufacturing v. CIT (1969) 72 ITR 612 (SC) have held that the expenditure incurred have to be adjudged from the point of view of businessmen and not the revenue. The revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how m…

J Kumar Infraprojects Limited, Mumbai vs. The Dy Commissioner of Income Tax Central Circle -5(1), Mumbai

The Appeal of the Assessee is partly allowed and that of the department is dismissed

ITA 4151/MUM/2024[2022-23]Status: DisposedITAT Mumbai03 Jul 2025AY 2022-23

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankar

Section 250Section 69A

…s the benefits accrued to it by retaining the key employees. As held by various decisions including that of Hon’ble Supreme Court in CIT v. Walchand & Co. P. Ltd. [1967] 65 ITR 381 (SC); S. A. Builders v. CIT [2007] 288 ITR 1 (SC); Udaiput Distillery Co. Ltd. 224 CTR 32 (SC); J.K. Woollen Manufacturing v. CIT (1969) 72 ITR 612 (SC) have held that the expenditure incurred have to be adjudged from the point of view of businessmen and not the revenue. The revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how m…

J Kumar Infraprojects Limited, Mumbai vs. The Dy Commissioner of Income Tax Central Circle -5(1), Mumbai

The Appeal of the Assessee is partly allowed and that of the department is dismissed

ITA 4150/MUM/2024[2019-20]Status: DisposedITAT Mumbai03 Jul 2025AY 2019-20

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankar

Section 250Section 69A

…s the benefits accrued to it by retaining the key employees. As held by various decisions including that of Hon’ble Supreme Court in CIT v. Walchand & Co. P. Ltd. [1967] 65 ITR 381 (SC); S. A. Builders v. CIT [2007] 288 ITR 1 (SC); Udaiput Distillery Co. Ltd. 224 CTR 32 (SC); J.K. Woollen Manufacturing v. CIT (1969) 72 ITR 612 (SC) have held that the expenditure incurred have to be adjudged from the point of view of businessmen and not the revenue. The revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how m…

Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad vs. Mylan Laboratories Limited, Hyderabad

In the result, appeal of the assessee is partly allowed

ITA 12/HYD/2019[2014-15]Status: DisposedITAT Hyderabad13 Nov 2019AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Respondent: Sh. YVST Sai, D.R
Section 251Section 28Section 32Section 32(1)Section 37(1)Section 43(1)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘A’ BENCH : Hyderabad Before Smt. P. Madhavi Devi, Judicial Member And Shri S. Rifaur Rahman, Accountant Member ITA No. 2335/Hyd./2018 Assessment Year: 2014-15 Mylan Laboratories Limited. Vs. Dy.CIT, Circle 16(2) Hyderabad Hyderabad. PAN: AADCM3491M (Appellant) (Respondent) ITA No. 12/Hyd./2019 Assessment Year: 2014-15 Dy.CIT, Circle 16(2) vs. Mylan Laboratories Limited. 2nd Floor, B Block, Plot No.564/A/22, Road no.92 I.T.Towers, A.C.Guards, Jubilee Hills Masab Tank Hyderabad 500 034. Hyderabad & (Appellant) (Respondent) For Revenue: Sh. YVST Sai, D.R. For…

Mylan Laboratories Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad

In the result, appeal of the assessee is partly allowed

ITA 2335/HYD/2018[2014-15]Status: DisposedITAT Hyderabad13 Nov 2019AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Respondent: Sh. YVST Sai, D.R
Section 251Section 28Section 32Section 32(1)Section 37(1)Section 43(1)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘A’ BENCH : Hyderabad Before Smt. P. Madhavi Devi, Judicial Member And Shri S. Rifaur Rahman, Accountant Member ITA No. 2335/Hyd./2018 Assessment Year: 2014-15 Mylan Laboratories Limited. Vs. Dy.CIT, Circle 16(2) Hyderabad Hyderabad. PAN: AADCM3491M (Appellant) (Respondent) ITA No. 12/Hyd./2019 Assessment Year: 2014-15 Dy.CIT, Circle 16(2) vs. Mylan Laboratories Limited. 2nd Floor, B Block, Plot No.564/A/22, Road no.92 I.T.Towers, A.C.Guards, Jubilee Hills Masab Tank Hyderabad 500 034. Hyderabad & (Appellant) (Respondent) For Revenue: Sh. YVST Sai, D.R. For…

Shri Sucha Singh Rai, Raipur (Cg) vs. The Assistant Commissioner of Income Tax, Raipur (Cg)

In the result, appeal of the assessee is allowed

ITA 239/BIL/2016[2012-13]Status: DisposedITAT Raipur27 Jun 2019AY 2012-13

Bench: Shri Partha Sarathi Chaudhury & Dr. Mitha Lal Meenaआयकर अपीऱ सं. / Ita No. 239/Rpr/2016 नििाारण वषा / Assessment Year : 2012-13

For Appellant: Shri Praveen Jain, CAFor Respondent: Shri A.K. Laskar, JCIT
Section 37

…ime does not acquire any fixed capital asset, in such scenario, no interference is warranted and it is an allowable expenditure as held by the Hon'ble Supreme Court of India in the case of Commissioner of Income Tax Vs. Udaipur Distillery Co. Ltd. reported as 224 CTR 32. 13. The Ld. AR of the assessee has provided in his written submission the break-up of the ledger copy of expenses of the four heads of the advertisement and according to the submissions, if all these heads are taken in their entirety and considered by the Revenue then in effect sales promotion expenses have not increased rather it has come down i…

ACIT, Circle-4(1), Visakhapatnam vs. Sri Varalakshmi Jute Twine Mills Pvt. Ltd, Rajam

In the result, appeals filed by the Revenue in ITA

ITA 458/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…ose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Panipat Woolen & General Mills Co. Ltd. 103 ITR 66 SC; CIT vs. Associated Electrical Agencies 266 ITR 63 (Mad); Udaipur Distillery Co. Ltd. 224 CTR 32 SC; Adidas India Marketing P Ltd. 10 Taxmann.com 18. It was contended that expediency of the expenditure is not for the Revenue to consider and relied on the decision of Hon'ble Madras High Court in Amarjothi Pictures vs. CIT 69 ITR 755, and CIT vs. Gobald Motor Services P Ltd. 100 ITR 240 (Mad). It was pointed out that the question of commercial…

Sri Varalakshmi Jute Twine Mills Private Limited, Rajam vs. DCIT, Circle-4(1), Visakhapatnam

In the result, appeals filed by the Revenue in ITA

ITA 404/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…ose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Panipat Woolen & General Mills Co. Ltd. 103 ITR 66 SC; CIT vs. Associated Electrical Agencies 266 ITR 63 (Mad); Udaipur Distillery Co. Ltd. 224 CTR 32 SC; Adidas India Marketing P Ltd. 10 Taxmann.com 18. It was contended that expediency of the expenditure is not for the Revenue to consider and relied on the decision of Hon'ble Madras High Court in Amarjothi Pictures vs. CIT 69 ITR 755, and CIT vs. Gobald Motor Services P Ltd. 100 ITR 240 (Mad). It was pointed out that the question of commercial…

Sri Varalakshmi Jute Twine Mills Pvt. Ltd., Rajam vs. The ITO, Srikakulam

In the result, appeals filed by the Revenue in ITA

ITA 349/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…ose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Panipat Woolen & General Mills Co. Ltd. 103 ITR 66 SC; CIT vs. Associated Electrical Agencies 266 ITR 63 (Mad); Udaipur Distillery Co. Ltd. 224 CTR 32 SC; Adidas India Marketing P Ltd. 10 Taxmann.com 18. It was contended that expediency of the expenditure is not for the Revenue to consider and relied on the decision of Hon'ble Madras High Court in Amarjothi Pictures vs. CIT 69 ITR 755, and CIT vs. Gobald Motor Services P Ltd. 100 ITR 240 (Mad). It was pointed out that the question of commercial…

The DCIT, Visakhapatnam vs. Sri Varalakshmi Jute Mills Pvt Ltd, Srikakulam

In the result, appeals filed by the Revenue in ITA

ITA 340/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…ose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Panipat Woolen & General Mills Co. Ltd. 103 ITR 66 SC; CIT vs. Associated Electrical Agencies 266 ITR 63 (Mad); Udaipur Distillery Co. Ltd. 224 CTR 32 SC; Adidas India Marketing P Ltd. 10 Taxmann.com 18. It was contended that expediency of the expenditure is not for the Revenue to consider and relied on the decision of Hon'ble Madras High Court in Amarjothi Pictures vs. CIT 69 ITR 755, and CIT vs. Gobald Motor Services P Ltd. 100 ITR 240 (Mad). It was pointed out that the question of commercial…

Bansal Classes Pvivate Ltd., Kota vs. JCIT, Kota

In the result, revenue’s ground of appeal is allowed for statistical purposes

ITA 698/JPR/2014[2010-11]Status: DisposedITAT Jaipur31 Oct 2017AY 2010-11
Section 40A(2)(b)

…n ground of commercial expediency. Refer Addidas India Marketing (p) Limited v AO 10 Taxmann.com 18. Again, Expenses incurred which was based on commercial consideration and business expediency, no interference is warranted. Refer, Udaipur Distillery Co. Ltd. 224 CTR 32 (SC). Similarly, The issue was of deduction of certain expenditure “issue management expenses” and the assessee succeeded only on the ground of consistency. Without going into the merits, the Supreme Court remitted back the matter to the High Court holding that the High Court should have examined the nature of the said expenditure. Refer Oswal Agr…

65 ITR 381 (SC); S. A. Builders v. CIT (224 CTR 32) — Cited in 14 Judgments | BharatTax