Amarjothi Pictures v. CIT

69 ITR 755High Court1968#6457 most cited

What is Amarjothi Pictures v. CIT authority for?

The revenue cannot question the commercial expediency of an expenditure if it is incurred wholly and exclusively for the purpose of business. The assessee's judgment on what constitutes reasonable business expenditure is generally respected.

18

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2015 to 2025.

Also referred to as

Amarjothi Pictures v. CIT · 69 ITR 755 · Section 37(1) · commercial expediency · business expenditure · revenue cannot question · assessee's judgment · reality aspect · admissibility of allowance

Sections most often in play

Section 143(3)Section 28Section 37(1)Section 447 ITR 167

Judgments citing Amarjothi Pictures v. CIT

DCIT, CIRCLE-1 & TPS, HUBBALLI vs. HUBLI SCAN CENTRE PVT. LTD., DHARWAD

In the result the grounds raised by the learned assessing officer are allowed as indicated above

ITA 554/BANG/2025[2018]Status: DisposedITAT Bangalore15 Dec 2025

Bench: Shri Prashant Maharishi, Vice – & Shri Keshav Dubeyassessment Year : 2018-19 M/S. Hubli Scan Centre Pvt. The Deputy Commissioner Ltd., Of Income Tax, 6-13 Lgf, Eureka Junction, Circle-1 & Tps, Travelers Bungalow Road Vs. Hubballi Dharwad - 580029 Pan: Aaach9520M Appellant Respondent

For Appellant: Shri Chytanya V Mudrabettu, Advocate
Section 143(3)Section 37(1)

…ss transaction and then such advances are written off as revenue expenditure whereas actually the amount advanced was to acquire a capital asset in the form of an MRI machine. The Ld. CIT(A) has wrongly relied upon the decision of the Hon’ble Supreme Court in 100 ITR 240 despite the facts are distinguishable and not considering the decision of Hon’ble Supreme Court in case of PCIT vs. Khyati Realtors Pvt. Ltd. The Revenue also challenges that the amount of claim for write off is for a colorable device. 4. The briefly stated facts shows that, that the Assessee is a company engaged in the business of medical diagn…

ACIT CIR -4(2) (1) , THANE vs. M/S. MUKTI GOLD PVT. LTD, MUMBAI

Appeal is partly allowed for statistical purpose and the assessee’s C

ITA 1804/MUM/2022[2017-18]Status: DisposedITAT Mumbai17 Feb 2023AY 2017-18
Section 143(3)Section 37(1)Section 68

…required under s. 10(2)(xv) of 1922 Act has to be decided on the facts and in the light of the circumstances of each particular case, but the final conclusion on the admissibility of an allowance is one of law. In the case of Amarjothi Pictures vs. CIT [1968] 69 ITR 755 (mad) and CIT vs. Gobald Motor Service (P) Ltd [1975] 100 ITR 240 (Mad) it was observed that Department cannot consider expediency factor, but must confine its examination to the reality aspect, the expediency of the expenditure is not for the revenue to consider, that is a matter entirely left to the judgment of the assessee concerned, in allowin…

ACIT CC - 13, NEW DELHI vs. A B HOTELS LIMITED, NEW DELHI

In the result, the appeal filed by the Revenue is allowed for statistical purposes only

ITA 864/DEL/2020[2016-17]Status: DisposedITAT Delhi24 Nov 2022AY 2016-17

Bench: Shri C.M. Garg & Shri Pradip Kumar Kediaassessment Year: 2016-17 Acit, Vs. A.B. Hotels Limited, Cc-13, Radisson Hotel, New Delhi. National Highway-08, Mahipalpur, New Delhi. Pan: Aaaca2729B (Appellant) (Respondent) Assessee By : Ms Kanika Jain, Advocate Revenue By : Shri Kanav Bali, Sr. Dr Date Of Hearing : 29.08.2022 Date Of Pronouncement : 24.11.2022 Order Per C.M. Garg, Jm: This Appeal Filed By The Revenue Is Directed Against The Order Dated 12.12.2019 Of The Cit(A)-37, New Delhi, Relating To Assessment Year 2016-17. 2. The Grounds Of Appeal Read As Under:- “1. That The Ld.Cit(A) Has Erred In Law & Facts In Deleting Disallowances Of Rs.7,67,21,258/- Which Pertains To House Property Income But Wrongly Claimed In The P&L By The Assessee. 2. That The Ld.Cit(A) Has Erred In Law & Facts In Ignoring The Fact That The Principle Of Res Judicata Is Not Applicable In The Income Tax Proceedings. 3. A) The Ld. Commissioner Of Income Tax (Appeals) Is Erroneous & Not Tenable In Law & On Facts. B) The Appellant Craves Leave To Add, Amend Any/All The Grounds Of Appeal Before Or During The Course Of Hearing Of The Appeal.”

For Appellant: Ms Kanika Jain, AdvocateFor Respondent: Shri Kanav Bali, Sr. DR
Section 143(3)Section 24

…at reasonableness of expenditure for the purpose of determining whether in fact the loan was for the purpose of business. Placing reliance on another judgement of the Hon’ble Madras High Court in the case of CIT vs. Global Motor Service Pvt. Ltd., reported in 100 ITR 240, the ld. AR submitted that it is not for the Revenue to question the commercial expediency. The ld. AR has also placed reliance on the decision of the jurisdictional High Court of Delhi in the case of CIT vs. Dalmia Cement (P) Ltd. to submit that once it is established that there was a nexus between the expenditure and the purpose of business, th…

ACIT 4(1), INDORE vs. SHRI SATISH JAIN, INDORE

In the result, the appeal of revenue is dismissed and the cross- objection of assessee is allowed

ITA 851/IND/2017[2013-14]Status: DisposedITAT Indore14 Sept 2022AY 2013-14

Bench: Ms. Suchitra Kamble & Shri B.M. Biyani(Conducted Through Virtual Court)

Section 143(2)Section 143(3)Section 14ASection 37Section 40A(2)(b)

…(MP). Copy of I.T.A.T. order has been submitted by the appellant during the course of appellant proceedings. 3.2 The appellant has also relied on the decisions of CIT vs. Gobald Motor Services P. Ltd. (100 ITR 240) (Mad) and Amarjothi Pictures v. CIT [1968] (69 ITR 755)(Mad) in support his case. After carefully gone through the findings of the case, it is clear that this issue on commission has been covered by the order of I.T.A.T. Bench. Hence I don’t find any basis for sustainability of the disallowance of Rs.1,50,22,016/- on account of expenses under the head of commission and this ground of appeal is allowed…

DCIT CC 44, MUMBAI vs. SOPARIWALA EXPORTS, MUMBAI

ITA 3039/MUM/2014[2007-08]Status: DisposedITAT Mumbai21 Sept 2021AY 2007-08
Section 132Section 143(2)Section 143(3)Section 153ASection 92

…assessing officer at subsequent date. 12 M/s. Sopariwala Exports M/s. Sopariwala Exports Pvt. Ltd. 5.9.31. The appellant has relied upon the following decisions. i) CIT vs Sales Magnesite Pvt Ltd. (1995) 214 ITR 1 (Bom) ii) Amarjothi Pictures vs CIT (1968) 69 ITR 755 (Mad) iii) CIT vs Rajarani Exports Pvt Ltd. (2013) 217 Taxman 84 (Calcutta) iv) Aluminum Corporation of India Ltd. (1972) 86 ITR 11 (SC) v) CIT vs Nestle India Ltd. (2011) 337 ITR 103 (Delhi) vi)JK Woollen Manufactures vs CIT (1969) 72 ITR 612 In respect of the argument that once the payment is exclusively for business, it is not open to the AO t…

R. RAHEJA PROPERTIES P. LTD.,MUMBAI vs. DCIT - 13(3)(1), MUMBAI

Accordingly, the ground raised by the assessee are allowed

ITA 4701/MUM/2016[2013-14]Status: DisposedITAT Mumbai30 Oct 2019AY 2013-14

Bench: Shri S. Rifaur Rahman, Am& Shri Ram Lal Negi, Jm आयकरअपीलसं./ I.T.A. No. 4701/Mum/2016 (निर्धारणवर्ा / Assessment Year: 2013-14)

For Appellant: Shri Mayur Kisnadwala &For Respondent: Shri Awangshi Gimson, DR
Section 143(2)

…he relied on the following case law:- 1.CIT v. Dhanrajgirji Raja Narasingirji [1973] 91 ITR 544 (SC) 2.CIT v. Gobald Motor Service (P.) Ltd. [1975] 100 ITR 240 (Mad) 3.CIT v. Dalmia Cement (B.) Ltd. [2002] 254 ITR 377 (Del) 4.Amarjothi Pictures v. CIT [1968] 69 ITR 755 (Mad) 17. On the other hand, learned DR submitted that assessee is co-promoter of the ING Financial Services Private Limited (IFSPL). He brought to our notice page 6 of paper book, in which assessee itself confirms the above facts and further submitted that assessee has sold the shares to its sister concern at a loss and the reasons submitted by…

ACIT CENTRAL CIRCLE, SALEM vs. THRIVENI EARTHMOVERS PVT. LTD., SALEM

In the result, the appeal filed by the Revenue in ITA

ITA 2283/CHNY/2018[2014-15]Status: DisposedITAT Chennai25 Sept 2019AY 2014-15

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…A) placing reliance on the decisions of Hon’ble Jurisdictional High Court in the cases of CIT vs. Madras Refineries Ltd, 266 ITR 170, CIT vs. Velumanickam Lodge, 317 ITR 338, Cholan Roadways Corporation ltd vs. CIT, 235 ITR 473 and Amarjothi Pictures vs CIT, 69 ITR 755 and on the analysis of the expenditure incurred on CSR, the ld. CIT(A) directed the Assessing Officer to disallow only 10% of the expenditure incurred in case amounting to ₹1,12,827/-. As regards to the addition made on account of difference between receipts as per 26AS and the amount credited to P & L account, the ld. CIT(A) considering the ITA…

ACIT CENTRAL CIRCLE, SALEM vs. THRIVENI EARTHMOVERS PVT. LTD., SALEM

In the result, the appeal filed by the Revenue in ITA

ITA 2282/CHNY/2018[2013-14]Status: DisposedITAT Chennai25 Sept 2019AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…A) placing reliance on the decisions of Hon’ble Jurisdictional High Court in the cases of CIT vs. Madras Refineries Ltd, 266 ITR 170, CIT vs. Velumanickam Lodge, 317 ITR 338, Cholan Roadways Corporation ltd vs. CIT, 235 ITR 473 and Amarjothi Pictures vs CIT, 69 ITR 755 and on the analysis of the expenditure incurred on CSR, the ld. CIT(A) directed the Assessing Officer to disallow only 10% of the expenditure incurred in case amounting to ₹1,12,827/-. As regards to the addition made on account of difference between receipts as per 26AS and the amount credited to P & L account, the ld. CIT(A) considering the ITA…

ACIT CENTRAL CIRCLE, SALEM vs. THRIVENI EARTHMOVERS PVT. LTD., SALEM

In the result, the appeal filed by the Revenue in ITA

ITA 2281/CHNY/2018[2012-13]Status: DisposedITAT Chennai25 Sept 2019AY 2012-13

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…A) placing reliance on the decisions of Hon’ble Jurisdictional High Court in the cases of CIT vs. Madras Refineries Ltd, 266 ITR 170, CIT vs. Velumanickam Lodge, 317 ITR 338, Cholan Roadways Corporation ltd vs. CIT, 235 ITR 473 and Amarjothi Pictures vs CIT, 69 ITR 755 and on the analysis of the expenditure incurred on CSR, the ld. CIT(A) directed the Assessing Officer to disallow only 10% of the expenditure incurred in case amounting to ₹1,12,827/-. As regards to the addition made on account of difference between receipts as per 26AS and the amount credited to P & L account, the ld. CIT(A) considering the ITA…

ACIT CENTRAL CIRCLE, SALEM vs. THRIVENI EARTHMOVERS PVT. LTD., SALEM

In the result, the appeal filed by the Revenue in ITA

ITA 2280/CHNY/2018[2011-12]Status: DisposedITAT Chennai25 Sept 2019AY 2011-12

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…A) placing reliance on the decisions of Hon’ble Jurisdictional High Court in the cases of CIT vs. Madras Refineries Ltd, 266 ITR 170, CIT vs. Velumanickam Lodge, 317 ITR 338, Cholan Roadways Corporation ltd vs. CIT, 235 ITR 473 and Amarjothi Pictures vs CIT, 69 ITR 755 and on the analysis of the expenditure incurred on CSR, the ld. CIT(A) directed the Assessing Officer to disallow only 10% of the expenditure incurred in case amounting to ₹1,12,827/-. As regards to the addition made on account of difference between receipts as per 26AS and the amount credited to P & L account, the ld. CIT(A) considering the ITA…

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)

…ur 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 ITA Nos. 458 & 404/VIZ/2017 (M/s. Sri Varalakshmi Jute Twine Mills Pvt. Ltd.) expediency has to be decided from the point of view of businessman and not by the subjective standard of reasonableness of revenue as held by Bombay High Court…

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)

…ur 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 ITA Nos. 458 & 404/VIZ/2017 (M/s. Sri Varalakshmi Jute Twine Mills Pvt. Ltd.) expediency has to be decided from the point of view of businessman and not by the subjective standard of reasonableness of revenue as held by Bombay High Court…

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)

…ur 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 ITA Nos. 458 & 404/VIZ/2017 (M/s. Sri Varalakshmi Jute Twine Mills Pvt. Ltd.) expediency has to be decided from the point of view of businessman and not by the subjective standard of reasonableness of revenue as held by Bombay High Court…

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)

…ur 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 ITA Nos. 458 & 404/VIZ/2017 (M/s. Sri Varalakshmi Jute Twine Mills Pvt. Ltd.) expediency has to be decided from the point of view of businessman and not by the subjective standard of reasonableness of revenue as held by Bombay High Court…

ASHRAJ FOODS & VEVERAGES P.LTD,MUMBAI vs. ITO 9(1)(1), MUMBAI

In the result, appeal of the assessee is allowed in part in terms indicted hereinabove

ITA 4838/MUM/2013[2009-10]Status: DisposedITAT Mumbai05 Dec 2016AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm M/S. Ashraj Foods & Vs. Ito – 9(1)-1, Mumbai Beverages Pvt. Ltd., Shop No.23, Galaxy Apts., B.J.Road, Bandra (W), Mumbai – 400 050 Pan/Gir No. Aaaca5134E Appellant) .. Respondent)

Section 143(3)

…s placed on the following case laws:-  CIT v Dhanrajgirji Raja Narasingirji 1973 91 ITR 544 (SC)  Sassoon J David & Co. P. Ltd., V/s CIT 118 ITR 261, 275-6 (SC)  CIT v Dalmia Cement (B.) Ltd., (2002) 254 ITR 377 (Delhi HC)  Amarjothi Pictures v CIT (1968) 69 ITR 755 (Mad.) CIT v Gobald Motor Service (P) Ltd., (1975) 100 ITR 240 (Mad.) 13. In view of the above discussion and applying the proposition of law laid down in above judicial pronouncements to the facts of instant case, it is clear that expenditure was incurred as commercial expediency and the assessee was having its own sufficient funds, interest free…

ASHRAJ FOODS & BEVERAGES P.LTD,MUMBAI vs. ITO 9(1)(1), MUMBAI

The appeal of the assessee is allowed

ITA 1505/MUM/2016[2011-12]Status: DisposedITAT Mumbai13 Jun 2016AY 2011-12

Bench: Shri Joginder Singh & Shri Ashwani Tanejaassessment Year: 2011-12 M/S Ashraj Foods & Beverages Ito-9(1)(1), Pvt. Ltd. Mumbai बनाम/ Shop No.22, Vs. Galaxy Apartments, B.J. Road, Bandra (W), Mumbai-400050 Pan. No. Aaaca5134E ("नधा"रती /Assessee) (राज"व /Revenue )

Section 115JSection 234B

…lf in the arm-chair of the businessman to decide as to how to run the business. No businessman can be compelled to maximise its profits. The ratio laid down in CIT vs Dalmia Cement Ltd. (254 ITR 377) (Bom.) and the ratio laid down in Amarjothi Pictures vs CIT 69 ITR 755 (Mad.), CIT vs Gobald Motor Service Pvt. Ltd. 100 ITR 240 (Mad.) comes to the rescue of the assessee. Considering the totality of facts and the judicial pronouncements discussed hereinabove, it is concluded that the expenditure was incurred wholly and exclusively for the purposes of business, therefore, the disallowance/addition is deleted. The ap…

SHRIRAM CAPITAL LIMITED,CHENNAI vs. DCIT, CHENNAI

In the result, the appeals filed by the assessee in ITA Nos

ITA 513/CHNY/2015[2011-2012]Status: DisposedITAT Chennai25 Jun 2015AY 2011-2012

Bench: Shri Chandra Poojari & Shri Challa Nagendra Prasadआयकर अपील सं./ I.T.A. Nos.512 &513 /Mds/2015 ("नधा"रण वष" / Assessment Year : 2010-2011 & 2011- 2012)

For Appellant: Shri. R. Sivaraman, AdvocateFor Respondent: Shri. N. Rengaraj, IRS, CIT
Section 14A

…s, then reasonableness of the expenditure is to be judged from the point of view of the businessmen and the commercial expediency is a matter entirely left to the judgment of the assessee as held by Madras High Court in the case of Amarjothi pictures vs. CIT 69 ITR 755 and Aluminium Corporation of India Ltd vs. CIT 86 ITR 11(SC). In our opinion, the businessman is only the best judge to determine the business expediency and therefore when he claims that he has incurred certain expenditure for the business expediency, his version is ordinarily be accepted. Further, it does not mean that the Assessing Officer…

SHRIRAM CAPITAL LIMITED,CHENNAI vs. DCIT, CHENNAI

In the result, the appeals filed by the assessee in ITA Nos

ITA 512/CHNY/2015[2010-2011]Status: DisposedITAT Chennai25 Jun 2015AY 2010-2011

Bench: Shri Chandra Poojari & Shri Challa Nagendra Prasadआयकर अपील सं./ I.T.A. Nos.512 &513 /Mds/2015 ("नधा"रण वष" / Assessment Year : 2010-2011 & 2011- 2012)

For Appellant: Shri. R. Sivaraman, AdvocateFor Respondent: Shri. N. Rengaraj, IRS, CIT
Section 14A

…s, then reasonableness of the expenditure is to be judged from the point of view of the businessmen and the commercial expediency is a matter entirely left to the judgment of the assessee as held by Madras High Court in the case of Amarjothi pictures vs. CIT 69 ITR 755 and Aluminium Corporation of India Ltd vs. CIT 86 ITR 11(SC). In our opinion, the businessman is only the best judge to determine the business expediency and therefore when he claims that he has incurred certain expenditure for the business expediency, his version is ordinarily be accepted. Further, it does not mean that the Assessing Officer…

Amarjothi Pictures v. CIT (69 ITR 755) — Cited in 18 Judgments | BharatTax