Airport Authority of India v. CIT

340 ITR 407High Court2012#2977 most cited

What is Airport Authority of India v. CIT authority for?

Expenditure incurred to facilitate the smooth functioning of business and ensure profitable operation is revenue in nature and not capital expenditure.

40

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2010 to 2026.

Also referred to as

Airport Authority of India v. CIT · 340 ITR 407 · revenue expenditure · capital expenditure · business expenditure · facilitating business function

Sections most often in play

Section 143(3)Section 11Section 12Section 13(1)(c)Section 13(2)(c)Section 13(3)Section 142(1)Section 143(1)
Read the full judgment

Issues it is cited on

recognised provident fundsection 50bsection 43b(f)approved gratuity fundsection 40a(9)section 211wholly and exclusively for businesssection 35dsection 32(1)(ii)slump saledomestic companysection 21

Judgments citing Airport Authority of India v. CIT

Sahara India Power Corporation Ltd, Pune vs. DCIT, New Delhi

In the result, the appeal filed by the revenue for the AY 2005-06 in I

ITA 1155/DEL/2009[2004-05]Status: DisposedITAT Delhi28 Apr 2023AY 2004-05

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar Us

For Appellant: Shri Ajay VohraFor Respondent: Shri Kanv Bali

…ally held that income-tax cannot be levied on hypothetical income: • Godhra Electricity Co. Ltd. v. CIT : 225 ITR 746 (SC) • CIT v. Excel Industries Ltd :358 ITR 295 (SC) • CIT v. Shoorji Vallabhdas &Co : 46 ITR 144 (SC) • Airport Authority of India v. CIT : 340 ITR 407 (Del.) • CIT v. Ferozepur Finance (P.) Ltd : 124 ITR 619 (P&H) • CIT v. Motor Credit Co. (P.) Ltd : 127 ITR 572 (Mad.) 37. In the aforesaid circumstances, where the income of the Assessee never materialized and agreement under consideration was subsequently cancelled, the ld. A.R. submitted that there arises no question of bringing to tax any hy…

Sahara India Power Corporation Ltd., Pune vs. Assistant Commissioner of Income-Tax

In the result, the appeal filed by the revenue for the AY 2005-06 in I

ITA 109/PUN/2007[2003-04]Status: DisposedITAT Delhi28 Apr 2023AY 2003-04

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar Us

For Appellant: Shri Ajay VohraFor Respondent: Shri Kanv Bali

…ally held that income-tax cannot be levied on hypothetical income: • Godhra Electricity Co. Ltd. v. CIT : 225 ITR 746 (SC) • CIT v. Excel Industries Ltd :358 ITR 295 (SC) • CIT v. Shoorji Vallabhdas &Co : 46 ITR 144 (SC) • Airport Authority of India v. CIT : 340 ITR 407 (Del.) • CIT v. Ferozepur Finance (P.) Ltd : 124 ITR 619 (P&H) • CIT v. Motor Credit Co. (P.) Ltd : 127 ITR 572 (Mad.) 37. In the aforesaid circumstances, where the income of the Assessee never materialized and agreement under consideration was subsequently cancelled, the ld. A.R. submitted that there arises no question of bringing to tax any hy…

Global Consultants & Designers Pvt. Ltd., New Delhi vs. ITO Ward 11(4), New Delhi

The appeal is allowed

ITA 1424/DEL/2019[2015-16]Status: DisposedITAT Delhi25 Jan 2023AY 2015-16

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaita No.1424/Del/2019, A.Y. 2015-16

Section 133(6)Section 143(2)Section 143(3)

…es Ltd. 358 ITR 295 (SC) 2. CIT v. Balbir Singh Maini:398 ITR 531(SC) 3. CIT v. Motor Credit Co. (P) Ltd. 127 ITR 572 (Mad.) [SLP filed by the revenue has been dismissed vide SLP (Civil) No. 2806 of 1981 (149 ITR (St. 93)] 4. CIT v. Ferozepur Finance (P) Ltd. 124 ITR 619 (P&H) [SLP filed by the revenue has been dismissed vide SLP (Civil) No. 8158 of 1981 [144 ITR (St.) 50]. Re: Interest on ICDs which had had become NPA could not be said to have been accrued to the assessee 5. CIT v. Vasisth Chay Vyapar Ltd. 330 ITR 440 (Del) Affirmed by the Hon’ble Supreme Court in 410 ITR 244 (SC) 6. CIT v. Brahmaputra Capital &…

El El Hotels & Investments Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 918/DEL/2010[2006-07]Status: DisposedITAT Delhi16 Feb 2021AY 2006-07
For Appellant: Shri Ajay Wadhwa, Advocate &For Respondent: Ms Nidhi Srivastava, CIT-DR
Section 115JSection 132Section 143(3)Section 153A

…vs. CIT (1991) 187 ITR 39; v) CIT vs. Associated Cement Companies Ltd. (1988) 172 ITR 257 (SC); vi) Empire Jute Co. Ltd. vs. CIT (1980) 124 ITR 1 (SC); 14 vii) CIT vs. Ashok Leyland Ltd. (1972) 86 ITR 549 (SC); viii) Airport Authority of India vs. CIT (2012) 340 ITR 407 (Del); ix) CIT, Bombay vs. Airlines Hotel (P) Ltd.; x) CIT vs. UTI Bank Ltd. (2013) 32 taxmann.com 282 (Gujarat); xi) CIT vs. M/s Shriram Builcons Ltd. ITA No.39,53,60,65 of 2006. xii) CIT vs. Motor Industries Co. Ltd. (1997) 223 ITR 112 (Karnataka); xiii) CIT vs. Sales Magnesite (P) Ltd. (1995) 214 ITR 1 (Bombay); xiv) CIT vs. Auto Distributors…

DCIT (Ltu), New Delhi vs. M/S. Gail (India) Ltd., New Delhi

Appeal is dismissed

ITA 4642/DEL/2013[1996-97]Status: DisposedITAT Delhi26 Oct 2020AY 1996-97

Bench: Sh. R. K. Panda & Ms Suchitra Kamble

Section 80HSection 80I

…) ii. CIT vs. D.T.T.D.C. Ltd. 350 ITR 1 (Del.) iii. CIT vs. Madras Refineries Ltd. 266 ITR 170 (Mad.) iv. CIT vs. India Radiator Ltd. 236 ITR 719 (Mad.) v. Gujarat Guardian Ltd. vs. DCIT ITA No. 3214/Del/2013 (Del. ITAT) vi. Airport Authority of India vs. CIT 340 ITR 407 (Del HC) 26. We have heard both the parties and perused all the relevant material available on record. The horticulture expenses on planting of trees, maintenance of lawns and areas in the close vicinity of the offices/ plants of the assessee in accordance with the mandate of the Government and the assessee has to comply with the government regul…

Gail (India) Ltd., New Delhi vs. DCIT-Ltu Delhi, New Delhi

Appeal is dismissed

ITA 4454/DEL/2013[1996-97]Status: DisposedITAT Delhi26 Oct 2020AY 1996-97

Bench: Sh. R. K. Panda & Ms Suchitra Kamble

Section 80HSection 80I

…) ii. CIT vs. D.T.T.D.C. Ltd. 350 ITR 1 (Del.) iii. CIT vs. Madras Refineries Ltd. 266 ITR 170 (Mad.) iv. CIT vs. India Radiator Ltd. 236 ITR 719 (Mad.) v. Gujarat Guardian Ltd. vs. DCIT ITA No. 3214/Del/2013 (Del. ITAT) vi. Airport Authority of India vs. CIT 340 ITR 407 (Del HC) 26. We have heard both the parties and perused all the relevant material available on record. The horticulture expenses on planting of trees, maintenance of lawns and areas in the close vicinity of the offices/ plants of the assessee in accordance with the mandate of the Government and the assessee has to comply with the government regul…

Red Fort Shahjahan Properties Pvt. Ltd., New Delhi vs. ACIT, Circle-21(2), New Delhi

In the result, appeal of the assessee is allowed

ITA 742/DEL/2020[2016-17]Status: DisposedITAT Delhi20 Aug 2020AY 2016-17

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Ys 2016-17]

For Appellant: Shri Ajay Vohra, Sr. D.RFor Respondent: Shri Jagdish Singh, Sr. D.R

…nterest. ……………….(emphasis supplied) 17. The revenue’s SLP was dismissed by the Hon’ble Supreme Court vide SLP (Civil) No. 2806 of 1981. A similar view was taken by the Hon’ble High Court of Punjab and Haryana in the case of CIT v. Ferozepur Finance (P) Ltd.: 124 ITR 619. 18. The Hon’ble High Court of Delhi in the case of CIT v. Goyal M.G. Gases (P) Ltd.: 303 ITR 159 has held that when the when the realization of even the principal amount of loan was in jeopardy, there could not be any real accrual of income by way of interest, even as per the mercantile system of accounting. The relevant findings of the Hon’ble…

United Shippers Ltd., Mumbai vs. DCIT - 3(3), Mumbai

In the result the appeal filed by the assessee is allowed

ITA 5815/MUM/2018[2015-16]Status: DisposedITAT Mumbai06 Jul 2020AY 2015-16

Bench: Shri Pramod Kumar & Shri Amarjit Singh

Section 143(2)Section 14A

…al income can be taxed and not notional income. - ShoorjiVallabhdas& Co. 46 ITR 144 (SC); - Godhra Electricity Co. Ltd.v. . CIT 225 ITR 746 (SC); - CIT vs. A. Raman & Co. 67 ITR 11(SC); - UCO Bank v. CIT 237 ITR 889 (SC); - Airport Authority of India v. CIT 340 ITR 407 (Del. )(FB); - CIT v. Motor Credit Co. P. Ltd. 127 ITR 572 (Mad.); - JCIT v. Pankaj Oxygen Ltd. 78 TTJ 119 (Nag.) - ACIT vs. Manick Chand Damani 72 TTJ 675 (Cal.). 13.1. After hearing both the parties, we do not find any reason to interfere in the order of ld. CIT(A), because the issue that only real income and not notional income is taxable, is…

Asst CIT Cir 6(1)(2), Mumbai vs. Ask Investment Managers P.Ltd, Mumbai

The appeal of the Revenue is allowed for statistical

ITA 534/MUM/2017[2012-13]Status: DisposedITAT Mumbai09 Oct 2018AY 2012-13

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year 2012-13 Acit M/S Ask Investment Circle-6(1)(2), Managers Pvt. Ltd. बनाम/ R. No.536, 5Th Floor, 1St Floor Bandbox House, Vs. Aayakar Bhavan, Dr. Ab Road, Worli, M. K. Road, Churchgate, Mumbai-400030 Mumbai-400020 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aafca2302P Shri Nitin Waghmode-Dr राज"व क" ओर से / Revenue By "नधा"रती क" ओर से / Assessee By Shri J.D. Mistri Sr. Advocate

Section 115JSection 14A

…real income can be taxed and not notional income. - Shoorji Vallabhdas & Co. 46 ITR 144 (SC); - Godhra Electricity Co. Ltd. . CIT 225 ITR 746 (SC); - CIT vs. A. Raman & Co. 67 ITR 11(SC); - UCO Bank v. CIT 237 ITR 889 (SC); - Airport Authority of India v. CIT 340 ITR 407 (Del. )(FB); - CIT v. Motor Credit Co. P. Ltd. 127 ITR 572 (Mad.); - JCIT v. Pankaj Oxygen Ltd. 78 TTJ 119 (Nag.) - ACIT vs. Manick Chand Damani 72 TTJ 675 (Cal.). 13.1. After hearing both the parties, we do not find any reason to interfere in the order of ld. CIT(A), because the issue that only real income and not notional income is taxable, is…

Deputy Commissioner of Income-Tax vs. Atlas Copco (India) Ltd., Pune

In the result, the appeal of the Revenue is dismissed

ITA 2286/PUN/2014[2005-06]Status: DisposedITAT Pune10 Jan 2018AY 2005-06

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri R. MurlidharFor Respondent: Shri Rajeev Kumar
Section 143(3)Section 154

…आयकर अऩीऱीय अधधकरण “ए” न्यायऩीठ ऩुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE श्री डी. करुणाकरा राव, ऱेखा सदस्य, एवं श्री ववकास अवस्थी, न्याययक सदस्य के समक्ष । BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM आयकर अऩीऱ सं. / ITA No. 2286/PUN/2014 यनधाारण वषा / Assessment Year : 2005-06 Dy. Commissioner of Income Tax, Circle – 8, Pune .......अऩीऱाथी / Appellant बनाम / V/s. Atlas Copco (India) Ltd., Mumbai – Pune Road, Dapodi, Pune-411012 PAN : AAACA4074D ……प्रत्यथी / Respondent Assessee by : Shri R. Murlidhar Revenue by : Shri Rajeev Kumar सुनवाई की तारीख / Date of Hearing : 1…

Valueline Equities P.Ltd, Mumbai vs. ITO 4(2)(2), Mumbai

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

ITA 4/MUM/2016[2010-11]Status: DisposedITAT Mumbai25 Oct 2017AY 2010-11

Bench: S/Shri B.R. Baskaran (Am) & Amarjit Singh (Jm)

Section 14A

…rd. The assessee also relied upon following case law in order to submit that the addition cannot be made merely on the basis of proforma invoices without establishing that the transactions have been carried out:- (a) Airports Authority of India Vs. CIT (2012)(340 ITR 407)(Delhi) (b) CIT Vs. Shib Sankar Das (2017)(83 taxmann.com 193)(Cal) The Ld A.R further submitted that the survey team did not find any other discrepancy in the books of accounts of the assessee. Further no other material was brought on record to correlate the impugned income of Rs.70.00 lakhs surrendered by the assessee. Accordingly he submitted…

Sh. Manish Thakur, New Delhi vs. ITO, New Delhi

Appeal is partly allowed

ITA 4668/DEL/2014[2010-11]Status: DisposedITAT Delhi26 Jul 2017AY 2010-11

Bench: Shri I. C. Sudhir & Shri Prashant Maharishi

For Appellant: Shri R. S. Singhvi, C. AFor Respondent: Shri Rajesh Kumar, Sr. D. R
Section 68

…open to consider or contemplate hypothetical or notional income in an arbitrary and distorted manner. There is complete lack of mind and appreciation of facts by AO and as such whole basis of addition is illegal and unwarranted. FEROZPUR FINANCE CO. Vs. CIT 124 ITR 619 (P & H) 10 I. T. Appeal No. 4668/Del/2014 Assessment Year : 2010-11. Income tax is levied on income, whether the accounts are maintained on mercantile system or on cash basis. If income does not result at all, there cannot be levy of tax. Even if an entry of hypothetical income is made in the books of account, where the income does not result at…

Sai Om Developers P.Ltd, Mumbai vs. ITO WD 10(2)(2), Mumbai

In the result, appeal for A

ITA 1962/MUM/2015[2010-11]Status: DisposedITAT Mumbai21 Dec 2016AY 2010-11

Bench: Shri Mahavir Singh () & Shri Ashwani Taneja ()

Section 143(3)

…n the case of CIT v. Saravana Spg. Mills (P) Ltd. - 293 ITR 201 4. Decision of High Court of Delhi in the case of CIT v.Indian Visit.com (P) Ltd - 219 CTR 603 5. Decision of High Court of Delhi in the case of International Airports Authority of India v. CIT - 303 ITR 433 6. Decision of Supreme Court in the case of Empire Jute Co. Ltd. v. CIT - 124 ITR 1 7. Decision of ITAT Delhi Bench in the case of Honda Siel Cars India Ltd. V. ACIT - 109 ITD 1" Ld. CIT(A) did not agree with the submissions of the assessee on the ground that these expenses were required for bringing capital asset into existence. Thus, he upheld…

Universal Industrial Fund Ltd., Kolkata vs. DCIT, C Ircle- 6, Kolkata

In the result, assessee’s appeal stands partly allowed

ITA 1838/KOL/2010[2007-08]Status: DisposedITAT Kolkata27 May 2016AY 2007-08

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year :2007-08

Section 115JSection 143(3)Section 14A

…st was actually charged. The same principle has also been laid down in the decision of the Madras High Court in the case of CIT v. Motor Credit Co. Pvt. Ltd. [127 ITR 572] and by the Punjab & Haryana High Curt in the case of Ferozpur Finance Pvt. Ltd. v. CIT [124 ITR 619]. Similar view has also been taken by the Calcutta High Court in the case of CIT vs. Balarampur Commercial Enterprises Ltd. [362 ITR 439]. In all these decisions the High Courts have repeatedly held that unless the ITA No.1838/Kol/2010 A.Y. 2007-08 Universal Industrial Fund Ltd. v. DCIT, Cir-6, Kol. Page 8 assessee actually charged the interest o…

M/S. Krishak Bharati Cooperative Ltd., New Delhi vs. ACIT, New Delhi

In the result, both the Appeals filed by the Assessee stand allowed

ITA 6786/DEL/2015[2011-12]Status: DisposedITAT Delhi09 Mar 2016AY 2011-12

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Vijay Ranjan, Adv. Sh. VartikFor Respondent: Sh. Amit Mohan Govil, CIT(DR)
Section 143(2)Section 143(3)Section 263

…ITA NOS. 6785&6786/DEL/2015 (AYRS. 2010-11 & 2011-12) KRISHAK BHARATI CO-OPERATIVE LIMITED VS. ACIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H”, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER I.T.A. Nos. 6785 & 6786/Del/2015 A.Yrs. : 2010-11 & 2011-12 M/s Krishak Bharati Cooperative VS. ACIT, Circle 30(1), Ltd., New Delhi A-60, Kailash Colony, New Delhi – 110 048 (PAN: AAAAK0203G) (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) Assessee by : Sh. Vijay Ranjan, Adv. Sh. Vartik Choksi, CA & Sh. KVR Krishna, CA De…

M/S. Krishak Bharati Cooperative Ltd., New Delhi vs. ACIT, New Delhi

In the result, both the Appeals filed by the Assessee stand allowed

ITA 6785/DEL/2015[2010-11]Status: DisposedITAT Delhi09 Mar 2016AY 2010-11

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Vijay Ranjan, Adv. Sh. VartikFor Respondent: Sh. Amit Mohan Govil, CIT(DR)
Section 143(2)Section 143(3)Section 263

…ITA NOS. 6785&6786/DEL/2015 (AYRS. 2010-11 & 2011-12) KRISHAK BHARATI CO-OPERATIVE LIMITED VS. ACIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H”, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER I.T.A. Nos. 6785 & 6786/Del/2015 A.Yrs. : 2010-11 & 2011-12 M/s Krishak Bharati Cooperative VS. ACIT, Circle 30(1), Ltd., New Delhi A-60, Kailash Colony, New Delhi – 110 048 (PAN: AAAAK0203G) (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) Assessee by : Sh. Vijay Ranjan, Adv. Sh. Vartik Choksi, CA & Sh. KVR Krishna, CA De…

Airport Authority of India vs. Commissioner of Income Tax Delhi I

Appeals are disposed of in the aforesaid terms

ITA/792/2008HC Delhi16 Dec 2011

Bench: CASES PERTAINING TO FULL BENCHES

…order is reproduced in its entirety. Thereafter, certain contentions raised by the counsel for the assessee are dealt and rejected and it is held that the view expressed earlier was correct. This decision is reported as Airport Authority of India Vs. CIT, 303 ITR 433. ITA Nos.ITA 432/2008,433/2008,ITA 437/2008,ITA 51712008 IT A 792/2008,IT A 1250/2008,IT A 1251/2008 Page 11 of 26 11. The argument of Mr. Bajpai was that identical issue had fallen for consideration in Bikaner Gypsum Vs. Commissioner of Income-Tax (1991) 187 !TR 39 and the Supreme Court had held such an expenditure to be the revenue in…

Airports Authority of India vs. Commissioner of Income Tax

Appeals are disposed of in the aforesaid terms

ITA - 432 / 2008HC Delhi16 Dec 2011

…rder is reproduced in its entirety. Thereafter, certain contentions raised by the counsel for the assessee are dealt and rejected and it is held that the view expressed earlier was correct. This decision is reported as Airport Authority of India Vs. CIT, 303 ITR 433. 2011:DHC:6488-DB ITA Nos.ITA 432/2008,433/2008,ITA 437/2008,ITA 517/2008 Page 12 of 26 ITA 792/2008,ITA 1250/2008,ITA 1251/2008 11. The argument of Mr. Bajpai was that identical issue had fallen for consideration in Bikaner Gypsum Vs. Commissioner of Income-Tax (1991) 187 ITR 39 and the Supreme Court had…

Commissioner of of Income Tax vs. Vishisth Chay Vyapar Limited

Appeals are dismissed

ITA - 1191 / 2007HC Delhi29 Nov 2010

…on was that the courts have held that even under the accrual system of accounting it is illusory to take credit for interest where the principal itself is doubtful of recovery. The Punjab & Haryana High Court in the case of CIT Vs. Ferozepur Finance (P) Ltd., 124 ITR 619 held that unless income accrued, there could be no tax liability and that even in mercantile system of accountancy, an assessee could forgo the whole or part of a debt, which was irrecoverable, and the same could not be added to the income of the assessee. The Court, referring to the decision of the Apex Court in the case of **Shoorii Vallabhdas*…

C.I.T vs. Leisure Wear Exports Ltd

ITA/1165/2007HC Delhi14 Sept 2010

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MS. JUSTICE REVA KHETRAPAL

Section 143(3)Section 144Section 260Section 263Section 288Section 80Section 80H

…ipt may follow in due course. The mere claim to income without any enforceable right cannot be regarded as an accrued income for the purpose of Income-Tax Act. The Tribunal referred to the following judgments in support:- i) In CIT Vs. Finance (P) Ltd. 124 ITR 619(P&H High Court), held as under: “Income-tax is levied on income whether the accounts are maintained on mercantile system or on cash basis. If income does not result at all, there cannot be levy of tax. Even if an entry of hypothetical income is made in the books of accounts, where the income does not result at all as there is neither ac…