Bharat Earth Movers v. CIT

245 ITR 428Supreme Court of India2000#52 most cited

What is Bharat Earth Movers v. CIT authority for?

A business liability that has definitely arisen in an accounting year is deductible even if it needs to be quantified and discharged later, as long as its incurring is certain and can be reasonably estimated.

901

judgments rely on this decision, according to BharatTax’s citation analysis of 367,244 Indian tax judgments — from 2006 to 2026.

Also referred to as

Bharat Earth Movers v CIT · 245 ITR 428 · ascertainable liability · unascertainable liability · accrued liability · provision for expenses · deduction · accounting year · future discharge

Also reported as

112 Taxmann 616 SCC 645162 CTR 325

Sections most often in play

Section 37(1)Section 143(3)Section 115JBSection 14ASection 40(a)(ia)Section 195Section 148Section 1961
Read the full judgment

Issues it is cited on

section 35dmercantile system of accountingenduring benefitintangible assetssection 40(a)(i)section 35revenue expenditurebook profitssection 37(1)section 115jbamalgamationsection 37

Judgments citing Bharat Earth Movers v. CIT

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 217/KOL/2018[2011-12]Status: DisposedITAT Kolkata28 Feb 2020AY 2011-12

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…9] 29 SOT 356 in support of the case of the assessee. In the course of hearing, reference has also been made to the following decisions: (i) judgement of the Hon'ble Supreme Court in the case of Calcutta Co. Ltd. (supra) (ii) Bharat Earth Movers v, CIT [20007 245 ITR 428/112 Taxman 61 (SC) and, (iii) Rotork Controls India (P.) Ltd. v. CIT [20097314 ITR 62/180 Taxman 422 (SC). ITA No.217-219/K/18 & CO 94-96/K/18 A.Y.s 11-12 to 13-14 DCIT, CC-2(1), Kol. Vs. M/s Paharpur Cooling Towers Ltd. Page 30 9. We have carefully considered the rival submissions. The respondent- assessee is engaged in the execution of an inf…

ACIT, Circle - 10(2), Kolkata vs. M/S. South City Projects (Kolkata) Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed and the cross objection of the assessee is also dismissed being infructuous

ITA 268/KOL/2018[2008-09]Status: DisposedITAT Kolkata26 Feb 2020AY 2008-09

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.268/Kol/2018 ("नधा"रणवष" / Assessment Year:2008-09)

For Appellant: Shri Ram Bilash Meena, CIT DRFor Respondent: Shri AkkalDudhwewala, FCA
Section 147Section 148Section 80I

…ceptual level but was definitely in the implementation phase. Had there been no accrued liability, the Assessee would not have paid such substantial sum of Rs. 2,80,00,000/- to Government Authorities. v) The Assessee’s reliance on Bharat Earth Movers Vs. CIT (245 ITR 428) (SC) and on the case of Metal Box Company of India Limited Vs. Workmen (73 ITR 53) (SC) is also on the issue at hand and supports the case of the assessee where it has been held that “the law is settled: if a business liability has definitely arisen in the accounting year, the deduction should be allowed although the liability may have to be qua…

ACIT, Circle - 10(2), Kolkata vs. M/S. Vesuvius India Ltd., Kolkata

In the result, the appeals of the revenue are dismissed and the appeals of the assessee are allowed

ITA 207/KOL/2018[2010-11]Status: DisposedITAT Kolkata26 Feb 2020AY 2010-11

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1333/Kol/2017 ("नधा"रणवष" / Assessment Year:2008-09)

For Appellant: Shri Sanjay Paul, Addl. CIT (DR)For Respondent: ShriSoumen Adak, FCA, Shri Aashish Podder, ACA &Shri Prashant
Section 143(3)Section 92C

…ding M/s Vesuvius India Ltd. ITA Nos.1333&1289/Kol/2017 ITA Nos.206 & 207/Kol/2018 Assessment Years: 2008-09, 2009-10 & 2010-11 liability, is arbitrary, unconscionable and de hors the Supreme court’s decision in the case of Bharat Earth Movers vs. CIT (2000) 245 ITR 428 (SC). The assessee has further submitted that Apex Court vide its interim order no. CC12060 / 2008 dated 08.09.2008 has stayed the said order of Exide Industries Ltd. (supra) and vide the subsequent order no. 22889/2008 dated 08.05.2009 clarified that the assessee is entitled to lodge the claim in the return after payment of taxes. Based on the a…

ACIT, Circle - 10(2), Kolkata vs. M/S. Vesuvius India Ltd., Kolkata

In the result, the appeals of the revenue are dismissed and the appeals of the assessee are allowed

ITA 206/KOL/2018[2009-10]Status: DisposedITAT Kolkata26 Feb 2020AY 2009-10

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1333/Kol/2017 ("नधा"रणवष" / Assessment Year:2008-09)

For Appellant: Shri Sanjay Paul, Addl. CIT (DR)For Respondent: ShriSoumen Adak, FCA, Shri Aashish Podder, ACA &Shri Prashant
Section 143(3)Section 92C

…ding M/s Vesuvius India Ltd. ITA Nos.1333&1289/Kol/2017 ITA Nos.206 & 207/Kol/2018 Assessment Years: 2008-09, 2009-10 & 2010-11 liability, is arbitrary, unconscionable and de hors the Supreme court’s decision in the case of Bharat Earth Movers vs. CIT (2000) 245 ITR 428 (SC). The assessee has further submitted that Apex Court vide its interim order no. CC12060 / 2008 dated 08.09.2008 has stayed the said order of Exide Industries Ltd. (supra) and vide the subsequent order no. 22889/2008 dated 08.05.2009 clarified that the assessee is entitled to lodge the claim in the return after payment of taxes. Based on the a…

ACIT, Circle - 10(2), Kolkata vs. M/S. Vesuvius India Ltd., Kolkata

In the result, the appeals of the revenue are dismissed and the appeals of the assessee are allowed

ITA 1333/KOL/2017[2008-09]Status: DisposedITAT Kolkata26 Feb 2020AY 2008-09

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1333/Kol/2017 ("नधा"रणवष" / Assessment Year:2008-09)

For Appellant: Shri Sanjay Paul, Addl. CIT (DR)For Respondent: ShriSoumen Adak, FCA, Shri Aashish Podder, ACA &Shri Prashant
Section 143(3)Section 92C

…ding M/s Vesuvius India Ltd. ITA Nos.1333&1289/Kol/2017 ITA Nos.206 & 207/Kol/2018 Assessment Years: 2008-09, 2009-10 & 2010-11 liability, is arbitrary, unconscionable and de hors the Supreme court’s decision in the case of Bharat Earth Movers vs. CIT (2000) 245 ITR 428 (SC). The assessee has further submitted that Apex Court vide its interim order no. CC12060 / 2008 dated 08.09.2008 has stayed the said order of Exide Industries Ltd. (supra) and vide the subsequent order no. 22889/2008 dated 08.05.2009 clarified that the assessee is entitled to lodge the claim in the return after payment of taxes. Based on the a…

Vesuvius India Limited, Kolkata vs. Addl. CIT, Range - 10, Kolkata

In the result, the appeals of the revenue are dismissed and the appeals of the assessee are allowed

ITA 1289/KOL/2017[2008-09]Status: DisposedITAT Kolkata26 Feb 2020AY 2008-09

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1333/Kol/2017 ("नधा"रणवष" / Assessment Year:2008-09)

For Appellant: Shri Sanjay Paul, Addl. CIT (DR)For Respondent: ShriSoumen Adak, FCA, Shri Aashish Podder, ACA &Shri Prashant
Section 143(3)Section 92C

…ding M/s Vesuvius India Ltd. ITA Nos.1333&1289/Kol/2017 ITA Nos.206 & 207/Kol/2018 Assessment Years: 2008-09, 2009-10 & 2010-11 liability, is arbitrary, unconscionable and de hors the Supreme court’s decision in the case of Bharat Earth Movers vs. CIT (2000) 245 ITR 428 (SC). The assessee has further submitted that Apex Court vide its interim order no. CC12060 / 2008 dated 08.09.2008 has stayed the said order of Exide Industries Ltd. (supra) and vide the subsequent order no. 22889/2008 dated 08.05.2009 clarified that the assessee is entitled to lodge the claim in the return after payment of taxes. Based on the a…

Asst CIT(Ltu) 1, Mumbai vs. Aditya Birla Nuvo Ltd, Mumbai

In the result, appeal of the Revenue is partly allowed for statistical purpose

ITA 4704/MUM/2015[2010-11]Status: DisposedITAT Mumbai24 Feb 2020AY 2010-11

Bench: Shri Vikas Awasthy & Shri N.K.Pradhanaditya Birla Nuvo Limited, A4, Aditya Birla Center, S.K.Ahire Marg, Worli, Mumbai 400 020 Pan:Aaaci 1747H ...... Appellant Vs. Addl. Commissioner Of Income Tax- Ltu-1 World Trade Centre, 29Th Floor, Centre -1, Cuffe Parade, Mumbai 400 005. ..... Respondent Asstt. Commissioner Of Income Tax- Ltu-1 World Trade Centre, 29Th Floor, Centre -1, Cuffe Parade, Mumbai 400 005. ..... Appellant

For Appellant: S/Shri Jahangir D. Mistri/For Respondent: Shri Anand Mohan
Section 14ASection 14A(2)Section 8D(2)

…Ld. CIT(A) erred in allowing the provision for leave salary relying on the decision of the Id. Tribunal in assessee's own case for A. Y. 2002-03 to 2006-07 which interalia relied upon the decision of the Hon'ble Apex Court in the case of Bharat Earth Movers (245 ITR 428) which was delivered before the introduction of section 43(B)f. The judgment of Hon'ble Calcutta High Court in the case of Exide Industries Ltd. has also been stayed by the Hon'ble Apex Court” 22 ITA NO.4704/MUM/2015(A.Y. 2010-11) 26.1 The ld. Authorized Representative for the assessee submitted that ground No.4 of the appeal by the Revenue is…

DCIT, Circle - 8(1), Kolkata vs. M/S. Ashiana Homes Pvt. Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1677/KOL/2018[2011-12]Status: DisposedITAT Kolkata21 Feb 2020AY 2011-12

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1677/Kol/2018 ("नधा"रणवष" / Assessment Year:2011-12)

For Appellant: Shri Radhey Shyam, CITFor Respondent: Shri Arvind Agarwal, Advocate & Shri Rajat Agarwal, FCA
Section 115JSection 263

…lable for being offered to tax in the next assessment year. The basis of the provision made has not been observed by the ld. CIT(A) to be irrational. In this regard, the decision of the Hon'ble Supreme Court in the case of ‘Bharat Earth Movers Vs CIT’, (2000) 245 ITR 428 (SC), which was followed by the Hon’ble Delhi High Court in the case of ‘Yum Restaurants (I)(P) Ltd.’, (2015) 371 ITR 139 (Del), under similar circumstances, is directly attracted. 26. Therefore, we are of the considered opinion that the ld. CIT(A) has gone wrong in sustaining the addition to the extent of Rs. 43,06,801/-. The same should also h…

The Industrial Development Corporation of Orissa Limited, Bhubaneswar vs. DCIT, Circle-1, Bhubaneswar

In the result, appeal of the Revenue is dismissed and appeal of

ITA 392/CTK/2017[2009-10]Status: DisposedITAT Cuttack17 Feb 2020AY 2009-10

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita No.379/Ctk/2017 (नििाारण वषा / Assessment Year : 2009 - 2010) Dcit, Corporate Circle-1(1), Vs. M/S Industrial Development Bhubaneswar Corporation Of Orissa Ltd., Idcol House, Ashok Nagar, Bhubaneswar स्थायी ऱेखा सं./Pan No. : Aaaci 4821 L & आयकर अपीऱ सं./Ita No.392/Ctk/2017 (नििाारण वषा / Assessment Year : 2009 - 2010) M/S Industrial Development Vs. Dcit, Corporate Circle-1(1), Corporation Of Orissa Ltd., Bhubaneswar Idcol House, Ashok Nagar, Bhubaneswar स्थायी ऱेखा सं./Pan No. : Aaaci 4821 L (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : Shri S.C.Bhadra,Ca राजस्व की ओर से /Revenue By : Shri M.K.Gautam, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 29/01/2020 घोषणा की तारीख/Date Of Pronouncement : 17/02/2020 आदेश / O R D E R Per L.P.Sahu, Am : These Are The Cross Appeals Filed By The Revenue & Assessee, Arising Out Of The Order Dated 15.06.2017 Passed By The Cit(A)-3, Bhubaneswar, For The Assessment Year 2009-2010. 2. First We Shall Take Up The Appeal Of The Revenue In Ita

For Appellant: Shri S.C.Bhadra,CAFor Respondent: Shri M.K.Gautam, CIT-DR
Section 147Section 263

…ssible as a deduction for computing the income for the relevant assessment year. However, the CIT(A) deleted the impugned addition relying on the decision of Haryana Agro Industries Corporation Ltd. (2017) 391 ITR 127 (P&H) and Bharat Heavy Electrical Ltd. 245 ITR 428 (Delhi), held that the provision towards pay revision debited to the P&L Account is an ascertained liability crystallized in the year under appeal and the same is an admissible deduction. The relevant observations of the CIT(A) in this regard are as under :- “Decision :The Hon'ble Apex Court in the case of Meal Box Company of India Ltd. V.s T…

DCIT, Corporate Circle-1(1), Bhubaneswar vs. M/S. Industrial Development Corporation of Orissa Ltd., Bhubaneswar

In the result, appeal of the Revenue is dismissed and appeal of

ITA 379/CTK/2017[2009-10]Status: DisposedITAT Cuttack17 Feb 2020AY 2009-10

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita No.379/Ctk/2017 (नििाारण वषा / Assessment Year : 2009 - 2010) Dcit, Corporate Circle-1(1), Vs. M/S Industrial Development Bhubaneswar Corporation Of Orissa Ltd., Idcol House, Ashok Nagar, Bhubaneswar स्थायी ऱेखा सं./Pan No. : Aaaci 4821 L & आयकर अपीऱ सं./Ita No.392/Ctk/2017 (नििाारण वषा / Assessment Year : 2009 - 2010) M/S Industrial Development Vs. Dcit, Corporate Circle-1(1), Corporation Of Orissa Ltd., Bhubaneswar Idcol House, Ashok Nagar, Bhubaneswar स्थायी ऱेखा सं./Pan No. : Aaaci 4821 L (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : Shri S.C.Bhadra,Ca राजस्व की ओर से /Revenue By : Shri M.K.Gautam, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 29/01/2020 घोषणा की तारीख/Date Of Pronouncement : 17/02/2020 आदेश / O R D E R Per L.P.Sahu, Am : These Are The Cross Appeals Filed By The Revenue & Assessee, Arising Out Of The Order Dated 15.06.2017 Passed By The Cit(A)-3, Bhubaneswar, For The Assessment Year 2009-2010. 2. First We Shall Take Up The Appeal Of The Revenue In Ita

For Appellant: Shri S.C.Bhadra,CAFor Respondent: Shri M.K.Gautam, CIT-DR
Section 147Section 263

…ssible as a deduction for computing the income for the relevant assessment year. However, the CIT(A) deleted the impugned addition relying on the decision of Haryana Agro Industries Corporation Ltd. (2017) 391 ITR 127 (P&H) and Bharat Heavy Electrical Ltd. 245 ITR 428 (Delhi), held that the provision towards pay revision debited to the P&L Account is an ascertained liability crystallized in the year under appeal and the same is an admissible deduction. The relevant observations of the CIT(A) in this regard are as under :- “Decision :The Hon'ble Apex Court in the case of Meal Box Company of India Ltd. V.s T…

Housing and Urban Development Corporation Ltd Through Its Authorized Signatory vs. Additional Commissioner of Income Tax Range 12 New Delhi

The appeal is allowed

ITA/541/2019HC Delhi06 Feb 2020

Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA

Section 143(3)Section 260ASection 263

…ITA 541/2019 Page 1 of 33 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 6th November, 2019 Pronounced on: 6th February, 2020 + ITA 541/2019 HOUSING AND URBAN DEVELOPMENT CORPORATION LTD THROUGH ITS AUTHORIZED SIGNATORY..... Appellant Through: Mr. Gagan Kumar and Mr. Amit Kaushik, Advocates. versus ADDITIONAL COMMISSIONER OF INCOME TAX RANGE 12 NEW DELHI ..... Respondent Through: Mr. Zoheb Hossain and Mr. Deepak Anand, Advocates. CORAM: HON’BLE MR. JUSTICE VIPIN SANGHI HON’BLE MR. JUSTICE SANJEEV…

State Bank of India, Mumbai vs. Addl CIT RG 2(2), Mumbai

In the result, the appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed, as indicated above

ITA 3644/MUM/2016[2008-09]Status: DisposedITAT Mumbai03 Feb 2020AY 2008-09

Bench: Sri Mahavir Singh, Vp & Sri G Manjunatha, Am आयकर अपील सुं./ Ita No. 3644/Mum/2016 (ननर्ाारण वर्ा / Assessment Year 2008-09) State Bank Of India The Dy. Commissioner Of 3Rd Floor, Corporate Centre Income Tax, Circle -2(2)(1) बनाम/ Madam Cama Road Mumbai Vs. Nariman Point Mumbai-400021 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaacs8577K

For Appellant: Shri P.J. Pardiwalla &For Respondent: Shri Anadi Varma, CIT-DR&
Section 143(3)Section 147

…ty which is ascertained at the time it is debited in the books of account of the assessee bank and is not contingent upon happening of any future event. He referred to the decision of the Hon'ble Supreme Court in the case of Bharat Earth Movers Vs. CIT (2000) 245 ITR 428 (SC) held as under: - “The law is settled: if a business liability has definitely arisen in the accounting year, the 14 | P a g e State Bank of India ITA Nos.3644&4563/Mum/2016 deduction should be allowed although the liability may have to be quantified and discharged at a future date. What should be certain is the incurring of the liability. It…

Nokia Solutions & Networks India Pvt. Ltd., Gurgaon vs. Addl. CIT, Special Range- 6, New Delhi

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

ITA 6376/DEL/2017[2012-13]Status: DisposedITAT Delhi27 Jan 2020AY 2012-13

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava[A.Y 2011-12] & [A.Y 2012-13] & Co No. 188/Del/2016 (A/O Ita No. 1655/Del/2016 [A.Y 2011-12])

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Surendra Pal, CIT-DR
Section 143(3)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I-1’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER [A.Y 2011-12] & [A.Y 2012-13] & CO No. 188/DEL/2016 (A/o ITA No. 1655/DEL/2016 [A.Y 2011-12]) Nokia Solutions and Networks India Pvt Ltd Vs. The Dy.C.I.T 7th Floor, Building No. 9A Circle – 18(2) DLF Cyber City, Sector 25A New Delhi Gurgaon - Haryana PAN No: AACCN 3871 F [A.Y 2011-12] The Dy.C.I.T Vs. Nokia Solutions and Networks India Pvt Ltd 7th Floor, Building No. 9A Circle – 18(2) New Delhi DLF Cyber City, Sector 25A Gurgaon - Haryana PAN No: AACCN…

M/S. Nokia Solutions and Networks India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

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

ITA 909/DEL/2016[2011-12]Status: DisposedITAT Delhi27 Jan 2020AY 2011-12

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava[A.Y 2011-12] & [A.Y 2012-13] & Co No. 188/Del/2016 (A/O Ita No. 1655/Del/2016 [A.Y 2011-12])

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Surendra Pal, CIT-DR
Section 143(3)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I-1’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER [A.Y 2011-12] & [A.Y 2012-13] & CO No. 188/DEL/2016 (A/o ITA No. 1655/DEL/2016 [A.Y 2011-12]) Nokia Solutions and Networks India Pvt Ltd Vs. The Dy.C.I.T 7th Floor, Building No. 9A Circle – 18(2) DLF Cyber City, Sector 25A New Delhi Gurgaon - Haryana PAN No: AACCN 3871 F [A.Y 2011-12] The Dy.C.I.T Vs. Nokia Solutions and Networks India Pvt Ltd 7th Floor, Building No. 9A Circle – 18(2) New Delhi DLF Cyber City, Sector 25A Gurgaon - Haryana PAN No: AACCN…

DCIT, New Delhi vs. M/S Nokia Solutions & Networks India Pvt. Ltd, New Delhi

In the result, the appeal of the assessee is allowed in part for

ITA 1655/DEL/2016[2011-12]Status: DisposedITAT Delhi27 Jan 2020AY 2011-12

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava[A.Y 2011-12] & [A.Y 2012-13] & Co No. 188/Del/2016 (A/O Ita No. 1655/Del/2016 [A.Y 2011-12])

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Surendra Pal, CIT-DR
Section 143(3)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I-1’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER [A.Y 2011-12] & [A.Y 2012-13] & CO No. 188/DEL/2016 (A/o ITA No. 1655/DEL/2016 [A.Y 2011-12]) Nokia Solutions and Networks India Pvt Ltd Vs. The Dy.C.I.T 7th Floor, Building No. 9A Circle – 18(2) DLF Cyber City, Sector 25A New Delhi Gurgaon - Haryana PAN No: AACCN 3871 F [A.Y 2011-12] The Dy.C.I.T Vs. Nokia Solutions and Networks India Pvt Ltd 7th Floor, Building No. 9A Circle – 18(2) New Delhi DLF Cyber City, Sector 25A Gurgaon - Haryana PAN No: A…

DCIT, Circle - 8(1), Kolkata vs. M/S. Ashiana Housing Limited, Kolkata

Appeal is dismissed

ITA 1219/KOL/2018[2012-13]Status: DisposedITAT Kolkata17 Jan 2020AY 2012-13

Bench: Shri P.M.Jagtap, Vice- & Shri S.S.Godaraassessment Year:2012-13 Dcit, Circle-8(1), M/S Ashiana Housing Ltd., बनाम / Aayakar Bhawan, 5Th 11G, Everest House, 46/C, V/S. Floor, P-7, Chowringhee Road, Chowringhee Square, Kolkata-700 01 Kolkata-700 069 [Pan No.Aadca 9093 P] .. अपीलाथ" /Appellant ""यथ" /Respondent Shri Dhruba Jyoti Ray, Jcit-Sr-Dr अपीलाथ" क" ओर से/By Appellant Shri Arvind Agarwal, Advocate & ""यथ" क" ओर से/By Respondent Shri Rajat Agarwal, Fca 09-01-2020 सुनवाई क" तार"ख/Date Of Hearing 17-01-2020 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per S.S.Godara:- This Revenue’S Appeal For Assessment Year 2012-13 Arises Against The Commissioner Of Income Tax (Appeals)-3, Kolkata’S Dated 02.04.2018, Passed In Case No. Cit(A), Kolkatk-3/10991/16-17, Involving Proceedings U/S 143(3) R.W.S. 263 Of The Income Tax Act, 1961; In Short ‘The Act’ Heard Both The Parties. Case File Perused. 2. The Revenue’S Sole Substantive Grievance Raised In The Instant Appeal Is That The Cit(A) Has Erred In Law As Well As On Facts In Accepting The Assessee’S Future Development Expenses Claim Of ₹2,24,85,000/- By Ignoring The Fact That Same Was In The Nature Of A Mere Provision For Unascertained Liability Only. Our Attention Is Invited To The Cit(A)’S Detailed Discussion Reversing The Assessing Officer’S Action As Under:- “Decision: I Have Considered The Submissions Of The Assessee Carefully. The Only Issue In This Appeal Is Disallowance Of Rs.2,24,85,000/- Made By The Ao On Account Of Future Development

Section 143(3)Section 145

…. The Hon'ble Tribunal relied on the Apex Court decisions in the case of Calcutta Co. Ltd. v. CIT (1959) 37 ITR 1 (SC), Rotork Controls India (P) Ltd. vs. CIT (2009) 23 DTR (SC) 79 and in the case of Bharat Earth Movers vs. CIT (2000) 162 CTR (SC) 325 [(2000) 245 ITR 428 (SC), and held that the liability is allowable if it has arisen in the year through it may be quantified and discharged at a future date. Further, the assessee has placed reliance on the decision in the case of M/s Spytech Buildcon vs. ACIT Circle-6, Jaipur – ITA No.149/JP/2015 & 205/JP/2015 –AY 2010-11 – Date of Pronouncement – 14/09/2016, where…

ACIT, New Delhi vs. M/S. Pepsico India Holdings Pvt. Ltd., Gurgaon

In the result, appeal of the assessee in ITA No

ITA 4102/DEL/2015[2008-09]Status: DisposedITAT Delhi14 Jan 2020AY 2008-09

Bench: Shri G.S. Pannu & Shri K. Narasimha Chary

For Appellant: Shri K.N. Mehta, advocateFor Respondent: Smt. Sulekha Verma, CIT/DR
Section 115Section 115JSection 143(3)Section 14A

…r gratuity and leave encashment was created scientifically on the basis of actuarial valuation and were, therefore, in the nature of ascertained liability and placed reliance on the decision of the Hon’ble Apex Court in the case of Bharat Earth movers vs. CIT 245 ITR 428 (SC) and a Metal Box Company of India Ltd vs. Their Workmen (1969) 73 ITR 53 (SC). 13. Learned Assessing Officer however was of the opinion that the assessee had equated an unascertained liability with contingent liability and actuarial valuation relied upon by the assessee to calculate the liability on account of gratuity is subject to a number…

M/S. Pepsico India Holdings Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, appeal of the assessee in ITA No

ITA 4077/DEL/2015[2008-09]Status: DisposedITAT Delhi14 Jan 2020AY 2008-09

Bench: Shri G.S. Pannu & Shri K. Narasimha Chary

For Appellant: Shri K.N. Mehta, advocateFor Respondent: Smt. Sulekha Verma, CIT/DR
Section 115Section 115JSection 143(3)Section 14A

…r gratuity and leave encashment was created scientifically on the basis of actuarial valuation and were, therefore, in the nature of ascertained liability and placed reliance on the decision of the Hon’ble Apex Court in the case of Bharat Earth movers vs. CIT 245 ITR 428 (SC) and a Metal Box Company of India Ltd vs. Their Workmen (1969) 73 ITR 53 (SC). 13. Learned Assessing Officer however was of the opinion that the assessee had equated an unascertained liability with contingent liability and actuarial valuation relied upon by the assessee to calculate the liability on account of gratuity is subject to a number…

M/S the Estate vs. The Asst Commissioner of Income Tax

The appeal is disposed of

ITA/34/2010HC Karnataka10 Jan 2020

Bench: ALOK ARADHE,RAVI V HOSMANI

Section 260

…ch eventually results in reduction of profits to that extent. In support of aforesaid submission, learned counsel for the appellant has placed reliance on the decisions in the case of ‘CALCUTTA CO. LTD Vs. CIT’ 37 ITR 1(SC), ‘BHARAT EARTH MOVERS Vs. CIT 245 ITR 428 (SC), ‘METAL BOX COMPANY OF INDIA LTD Vs. THEIR WORKMEN’ 73 ITR 53 (SC), ‘JIWANRAM SHEODUTTRAI Vs. CIT’ 279 ITR 512 (Cal), ‘CIT Vs. 8 BURHWAL SUGAR MILLS CO. LTD.’ 82 ITR 784 (ALL) AND ‘SASSOON J DAVID AND CO. P LTD Vs. CIT’ 118 ITR 261 (SC). 6. On the other hand, learned counsel for the revenue has taken us through the ord…

Caprihans India Ltd, Mumbai vs. Dccc -36, Mumbai

ITA 4252/MUM/2011[2005-06]Status: DisposedITAT Mumbai23 Dec 2019AY 2005-06

Bench: Shri Pramod Kumar & Shri Ravish Soodita Nos. 4252 To 4254/Mum/2011 (Assessment Years: 2005-06 To 2007-08) M/S Caprihans India Ltd. Dy. Cit Central Circl-36 Block-D, Shivsagar Estate, Mumbai. Vs. Dr. A.B.Road, Worli, Mumbai – 400 018 Pan – Aaacc1646F (Appellant) (Respondent) The Asstt. Commissioner Of Income-Tax, M/S Caprihans India Ltd. Central Circle-36, Room No.11, Block-D, Shivsagar Estate Vs. Aayakar Bhavan, M.K. Marg, Dr. Annie Besant Road,Worli, Mumbai – 400 020 Mumbai- 400 018 Pan – Aaacc1646F (Appellant) (Respondent) Appellant By: Shri R. Murlidhar, A.R Respondent By: Shri Awungshi Gimson, D.R Date Of Hearing: 01.10.2019 Date Of Pronouncement: 23.12.2019 O R D E R Per Ravish Sood, Jm The Assessee & The Revenue Being Aggrieved With The Order Passed By The Cit(A)- 41, Mumbai, Dated 31.12.2009 For A.Y. 2005-06 Have Preferred Cross-Appeals Before Us. Also, The Assessee Is In Appeal Against The Respective Orders Of The Cit(A)-41 For A.Y. 2006-07 & A.Y. 2007-08, Both Dated 31.12.2009. As Certain Common Issues Are Involved In The Captioned

For Appellant: Shri R. Murlidhar, A.RFor Respondent: Shri Awungshi Gimson, D.R
Section 115JSection 132Section 143(1)Section 153C

…e accounting year, the deduction should be allowed although the liability may have to be quantified and discharged at a future date. Our aforesaid view is fortified by the judgment of the Hon‟ble Supreme Court in the case of Bharat Earth Movers Vs. CIT (2000) 245 ITR 428 (SC). In the said case, it was observed by the Hon‟ble Apex Court that what should be certain is the incurring of the liability and the fact that the same is capable of being estimated with reasonable certainty, although the actual quantification may not be possible. As therein observed, if the aforesaid requirements were satisfied, then the liab…