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 367,181 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

M/S. Quippo Oil & Gas Infrastructure Ltd., Gurgaon vs. Addl.CIT, New Delhi

Appeal of the revenue is dismissed

ITA 5634/DEL/2014[2008-09]Status: DisposedITAT Delhi03 Apr 2019AY 2008-09

Bench: Shri R. K. Panda & Ms Suchitra Kamblequippo Oil & Gas Infra Ltd. Vs The Additional D-2, 5Th Floor, Southern Park, Commissioner Of Income Saket Place Tax, New Delhi Aaacq1278P Range-14 New Delhi (Appellant) (Respondent) Dcit Vs Quippo Oil & Gas Infra Ltd. Circle-14(1) D-2, 5Th Floor, Southern New Delhi Park, Saket Place New Delhi Aaacq1278P (Appellant) (Respondent)

Section 115JSection 143(3)Section 37Section 43B

…shment only on payment basis is ultra vires. Provision for leave encashment is an ascertained liability since it is determined on the basis of actuarial valuation. The Ld. AR relied upon the decision of Apex Court in case of Bharat Earth Movers vs. CIT (2000) 245 ITR 428 (SC) wherein it was held that if a business liability has arisen in the accounting year, the deduction should be allowed although the liability may have to be quantified and discharged at a future date. It should also be capable of being estimated with reasonable certainty though the actual quantification may not be possible. If these requirement…

DCIT, Cir-11(1), Kolkata vs. M/S. Emami Biotech Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 1915/KOL/2017[2011-12]Status: DisposedITAT Kolkata29 Mar 2019AY 2011-12

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

…eceipt. There are various judicial pronouncements wherein guidelines or criteria have been laid down to determine the character of such amounts received as incentives/subsidies. As observed by the Hon’ble Supreme Court in the case of K.C.P. Limited –vs.- CIT [245 ITR 431], it is not the name given by the assesese or even by the revenue or anyone else that matters, but it is true character of the receipt that determines its taxability and being regarded as falling within the capital field or out of it. As held by the Hon’ble Supreme Court in the case of Ponny Sugar & Chemicals Limited (supra), the nature of the re…

Shri Vijay Kumar Aggarwal, Jalandhar vs. Income Tax Oficer, Ward II(4), Jalandhar

In the result, the appeals of the assessee are dismissed

ITA 119/ASR/2018[2014-15]Status: DisposedITAT Amritsar18 Mar 2019AY 2014-15

Bench: Sh. N. S. Saini & Sh. N. K. Choudhryita No. 38/Asr./2017 : Asstt. Year : 2013-14 Ita No. 77/Asr./2017 : Asstt. Year : 2012-13

For Appellant: Sh. J. S. Bhasin, AdvFor Respondent: Ms. Shivani Bansal, DR
Section 43B

…ing such loan, it would not invite disallowance u/s.43B(d) of the Act ibid. x) Before the authorities below, the assessee also drew support from the decision of Hon'ble Supreme Court in the case of "M/S Bharat Earth Movers Vs Commissioner of Income Tax (2000) 245 ITR 428 ISCL In para 4 of this order, their Lordships held that:- ITA Nos.38 & 77/Asr./2017 12 ITA No. 119/Asr./2018 Vijay Kumar Aggarwal "The law is settled that if a business liability has definitely arisen in the accounting year, the deduction should be allowed, although the liability may have to be quantified and discharged at a future date. What…

Sh. Vijay Kumar Aggarwal, Prop., Jalandhar vs. Income Tax Officer, Jalandhar

In the result, the appeals of the assessee are dismissed

ITA 38/ASR/2017[2013-14]Status: DisposedITAT Amritsar18 Mar 2019AY 2013-14

Bench: Sh. N. S. Saini & Sh. N. K. Choudhryita No. 38/Asr./2017 : Asstt. Year : 2013-14 Ita No. 77/Asr./2017 : Asstt. Year : 2012-13

For Appellant: Sh. J. S. Bhasin, AdvFor Respondent: Ms. Shivani Bansal, DR
Section 43B

…ing such loan, it would not invite disallowance u/s.43B(d) of the Act ibid. x) Before the authorities below, the assessee also drew support from the decision of Hon'ble Supreme Court in the case of "M/S Bharat Earth Movers Vs Commissioner of Income Tax (2000) 245 ITR 428 ISCL In para 4 of this order, their Lordships held that:- ITA Nos.38 & 77/Asr./2017 12 ITA No. 119/Asr./2018 Vijay Kumar Aggarwal "The law is settled that if a business liability has definitely arisen in the accounting year, the deduction should be allowed, although the liability may have to be quantified and discharged at a future date. What…

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

In the result, the appeal of the revenue is dismissed

ITA 714/KOL/2018[2013-14]Status: DisposedITAT Kolkata06 Mar 2019AY 2013-14

Bench: Shri P.M. Jagtap & Shri A. T. Varkey, Jm] I.T.A. No. 714/Kol/2018 Assessment Year: 2013-14 Dcit, Circle – 8(1)Kolkata.................................…………………………………………………Appellant Aayakar Bhawan, 5Th Floor, P-7, Chowringhee Square, Kolkata – 700 069. [Pan: Aadca 9093 P] M/S. Ashiana Housing Limited...................………………………………………………….Respondent 11G, Everest, 46C, Chowringhee Road, Kolkata – 700 071. Appearances By: Shri Shankar Halder, Jcit, Sr. Dr Appearing On Behalf Of The Revenue. Shri Arvind Agarwal, Advocate & Shri Rajat Agarwal, Fca Appearing On Behalf Of The Assessee. Date Of Concluding The Hearing : January 08, 2019 Date Of Pronouncing The Order : March 06, 2019 Order Per P.M. Jagtapthis Appeal Is Preferred By The Revenue Against The Order Of Ld. Cit(A) – 3, Kolkata Dated 23.02.2018 & The Solitary Issue Involved Therein Is Raised By The Revenue By Way Of The Following Ground: “That On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Erred In Allowing The Future Development Expenses Amounting To Rs. 2,25,01,129/- By Ignoring The Fact That The Said Expenses Was Provision For Unascertained Liability.”

Section 143(3)Section 145

…iect. The Hon'ble Tribunal relied on the Apex Court decisions in the case of Calcutta Co. Ltd. V CIT (1959) 37 ITR (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 though 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. A.C.l.T. Circle -6, Jaipur - ITA No. 149/JP20l5 & 205/JP/20l5 - A.Y. 2010-ll - Date of Pronouncement – 14/09/201…

M/S. Barmer Lignite Mining Company Limited, Jaipur vs. Assistant Commissioner of Income Tax, Circle-6, Jaipur

In the result, both the appeals of the assessee are allowed in part whereas the appeals of the revenue are dismissed

ITA 799/JPR/2018[2014-15]Status: DisposedITAT Jaipur14 Feb 2019AY 2014-15
For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri B.K. Gupta (CIT-DR)
Section 143(3)

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “B”, JAIPUR Jh jes'k lh 'kekZ] ys[kk lnL; ,oa Jh fot; iky jko] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 798/JP/2018 fu/kZkj.k o"kZ@Assessment Year :2013-14 cuke M/s Barmer Lignite Mining A.C.I.T., Vs. Company Limited, Circle-6, Office No. 2 & 3, 7th Floor, Man Jaipur. Upasana Plaza, C-44, Sardar Patel Marg, C-Scheme, Jaipur 302001. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AADCB 0574 G vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 774/JP/2018…

M/S. Barmer Lignite Mining Company Limited, Jaipur vs. Assistant Commissioner of Income Tax, Circle-6, Jaipur

In the result, both the appeals of the assessee are allowed in part whereas the appeals of the revenue are dismissed

ITA 798/JPR/2018[2013-14]Status: DisposedITAT Jaipur14 Feb 2019AY 2013-14
For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri B.K. Gupta (CIT-DR)
Section 143(3)

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “B”, JAIPUR Jh jes'k lh 'kekZ] ys[kk lnL; ,oa Jh fot; iky jko] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 798/JP/2018 fu/kZkj.k o"kZ@Assessment Year :2013-14 cuke M/s Barmer Lignite Mining A.C.I.T., Vs. Company Limited, Circle-6, Office No. 2 & 3, 7th Floor, Man Jaipur. Upasana Plaza, C-44, Sardar Patel Marg, C-Scheme, Jaipur 302001. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AADCB 0574 G vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 774/JP/2018…

Deputy Commissioner of Income Tax, Circle-6, Jaipur vs. M/S. Barmer Lignite Mining Corporation Limited, Jaipur

In the result, both the appeals of the assessee are allowed in part whereas the appeals of the revenue are dismissed

ITA 775/JPR/2018[2014-15]Status: DisposedITAT Jaipur14 Feb 2019AY 2014-15
For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri B.K. Gupta (CIT-DR)
Section 143(3)

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “B”, JAIPUR Jh jes'k lh 'kekZ] ys[kk lnL; ,oa Jh fot; iky jko] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 798/JP/2018 fu/kZkj.k o"kZ@Assessment Year :2013-14 cuke M/s Barmer Lignite Mining A.C.I.T., Vs. Company Limited, Circle-6, Office No. 2 & 3, 7th Floor, Man Jaipur. Upasana Plaza, C-44, Sardar Patel Marg, C-Scheme, Jaipur 302001. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AADCB 0574 G vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 774/JP/2018…

Deputy Commissioner of Income Tax, Circle-6, Jaipur vs. M/S. Barmer Lignite Mining Corporation Limited, Jaipur

In the result, both the appeals of the assessee are allowed in part whereas the appeals of the revenue are dismissed

ITA 774/JPR/2018[2013-14]Status: DisposedITAT Jaipur14 Feb 2019AY 2013-14
For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri B.K. Gupta (CIT-DR)
Section 143(3)

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “B”, JAIPUR Jh jes'k lh 'kekZ] ys[kk lnL; ,oa Jh fot; iky jko] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 798/JP/2018 fu/kZkj.k o"kZ@Assessment Year :2013-14 cuke M/s Barmer Lignite Mining A.C.I.T., Vs. Company Limited, Circle-6, Office No. 2 & 3, 7th Floor, Man Jaipur. Upasana Plaza, C-44, Sardar Patel Marg, C-Scheme, Jaipur 302001. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AADCB 0574 G vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 774/JP/2018…

Xl India Business Services Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

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

ITA 2145/DEL/2017[2011-12]Status: DisposedITAT Delhi01 Feb 2019AY 2011-12

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2011-12 M/S. Xl India Business Vs. Addl. Cit, Services Pvt. Ltd., Special Range-9, New Delhi Ff-101, Building No. G-11, Sarines Sonia Sadan, Community Centre, Vikas Puri, New Delhi Pan :Aaacx0309A (Appellant) (Respondent) & S.A. No.16/Del/2019 [Arising Out Of Ita No.2145/Del/2017] Assessment Year: 2011-12 M/S. Xl India Business Vs. Addl. Cit, Services Pvt. Ltd., Special Range-9, New Delhi Ff-101, Building No. G-11, Sarines Sonia Sadan, Community Centre, Vikas Puri, New Delhi Pan :Aaacx0309A (Appellant) (Respondent)

Section 10ASection 10A(1)Section 10A(4)Section 115JSection 143(3)Section 234BSection 250Section 271(1)(c)

…d on a scientific basis with a reasonable degree of estimation. Variation in estimate cannot convert it into a contingent or unascertained figure. ” He also strongly relied upon the judgment of Hon'ble Supreme Court in the case of Bharat Earth Movers vs. CIT, 245 ITR 428 (SC). He further submitted that the liabilities were ascertained in the case of assessee, because in the month of March itself based on the grade of the employees’ bonus was determined and provision was made. 60. On the other hand, learned Department Representative strongly relied upon the order of the Id. CIT(A). S.A. No. 16/Del/2019 61. After c…

The ITO, Ward-1(3), Ahmedabad vs. M/S. Chamunda Pharma Machinery Pvt. Ltd., Ahmedabad

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

ITA 2169/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad30 Jan 2019AY 2011-12

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No.1945/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-2012

…provision filed with AO. The provision is based on budgeted numbers - a method which has been widely accepted as being scientific& there is no need to fall back on any comparable based on current year or preceding year experience. SC in Bharat Earthmovers Ltd 245 ITR 428 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 quantified and discharged at a future date. What should be certain is the incurring of the liability. It should also be capable of being estimated with reasonable certainty though the actu…

Chamunda Pharma Machinery Pvt. Ltd., Ahmedabad vs. The Income Tax Officer, Ward-1(3), Ahmedabad

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

ITA 1945/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad30 Jan 2019AY 2011-12

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No.1945/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-2012

…provision filed with AO. The provision is based on budgeted numbers - a method which has been widely accepted as being scientific& there is no need to fall back on any comparable based on current year or preceding year experience. SC in Bharat Earthmovers Ltd 245 ITR 428 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 quantified and discharged at a future date. What should be certain is the incurring of the liability. It should also be capable of being estimated with reasonable certainty though the actu…

DCIT, New Delhi vs. M/S Apex Strategic Consulting Services Pvt. Ltd., New Delhi

In the result, appeal of the revenue is dismissed

ITA 173/DEL/2016[2012-13]Status: DisposedITAT Delhi29 Jan 2019AY 2012-13

Bench: Shri R.K. Panda & Shri K. Narasimha Chary

For Appellant: Shri R.K. Sharma, AdvocateFor Respondent: Ms Ashima Neb, Sr. DR
Section 143(3)Section 37

…was crystallized during the financial year itself but the payment was made subsequent thereto before finalization of the accounts. Learned AR submitted that, on the other hand, the decision of the Hon’ble Apex Court in the case of Bharat Earth Movers vs CIT, 245 ITR 428 (SC) wherein it was held that the liability in praesenti, though discharged at a future date, is not a contingent liability and is 3 allowable u/s 37 of the Act, is applicable to the facts of the present case. 6. It is further submitted by the learned AR that the assessee complied with the requirement of AS-4 and it is only a matter of adjustment…

DCIT(E), New Delhi vs. Goodearth Foundation, New Delhi

In the result, the grounds of appeal Nos

ITA 3524/DEL/2015[2010-11]Status: DisposedITAT Delhi29 Jan 2019AY 2010-11

Bench: Shri R.K. Panda & Shri K. Narasimha Charyassessment Year: 2010-11 Dcit(E), Vs. Goodearth Foundation, Circle-1(1), Eicher House, Civic Centre, 12, Commercial Complex, New Delhi. Greater Kailash-Ii, New Delhi. Pan: Aaatg5663R

For Appellant: Shri Gaurav Jain, Advocate &For Respondent: Ms Ashima Neb, Sr. DR
Section 11(1)Section 11(1)(a)Section 12ASection 32Section 80G

…h the said method, the assessee recognizes all the revenues as well as expenses on the dates of accrual notwithstanding actual receipt or payment thereof subsequently. The decisions of the Hon'ble Supreme Court in the case of Bharat Earth Movers Ltd. vs. CIT (245 ITR 428) and in the case of CIT vs. Garware Synthetics Bristles, 205 ITR 426 were brought to the notice of the Assessing 7 Officer. It was accordingly argued that the provision made by the assessee should be allowed. 10. However, the Assessing Officer was not satisfied with the explanation given by the assessee. Distinguishing the various decisions re…

The Burdwan Central Co-Operative Bank Limited, Burdwan vs. ACIT, Circle-2, Burdwan

In the result, these three appeals of assessee for the A

ITA 2405/KOL/2016[2008-09]Status: DisposedITAT Kolkata23 Jan 2019AY 2008-09

Bench: Shri A.T. Varkey, J.M. & Dr.A.L.Saini, A.M.)

For Appellant: Shri Pratp Kanti Ghosh, FCA, ld.ARFor Respondent: Shri Pijush Mukherjee, Addl. CIT, ld. Sr.DR
Section 263

…se. Relevant portion of which is reproduced herein below:- “12. We have heard the rival submissions. The allowability with regard to claiming deduction on account of provision has been laid down by the Hon’ble Supreme Court in the case of Bharat Earth Movers 245 ITR 428. In the aforesaid decision of the Hon’ble Supreme Court it has been held that if a business liability has definitely arisen in the accounting year, deduction is allowable although the liability may have to quantified and discharged at a future date. The Court held that what should be certain is the incurring of the liability and its quantificatio…

JCIT (OSD), New Delhi vs. M/S. Dcm Shriram Consolidated Ltd., New Delhi

ITA 1836/DEL/2016[2011-12]Status: DisposedITAT Delhi15 Jan 2019AY 2011-12

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri K. Sampath, Advocate and Shri V. Raj Kumar, AdvocateFor Respondent: Smt. Aparna Karan, CIT DR
Section 80Section 80HSection 80I

…that the liability which has accrued though to be discharged at a future date has to be deducted while working out the profit and gains of the business being ascertained liability. Hon’ble Supreme Court in the case of Bharat Earth Movers 9. vs. CIT – (2000) 245 ITR 428 relied upon by the assessee company dealt with the issue in controversy by holding that when a business liability has definitely arising in the accounting year, the deduction should be allowed although the liability made have to be quantified and have to be discharged in a future date. Operative part of the ratio of the judgment is extracted f…

M/S. Cec International Corporation (India) Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, appeal of Assessee is dismissed

ITA 3813/DEL/2014[2007-08]Status: DisposedITAT Delhi14 Jan 2019AY 2007-08

Bench: Shri Bhavnesh Saini, J.M. & Shri L.P. Sahu, A.M.

For Appellant: Shri Amit Arora, AdvocateFor Respondent: Ms. Nimita Pandey, SR. D.R
Section 143(3)

…e on project" amounting to Rs. 80,99,113/- made by the appellant, by ignoring treatment of such items specified in Accounting Standard - 7 issued by ICAI. 13. The Ld. AO/DRP erred in not appreciating the ruling of Apex court in the case of Bharat Earth Movers 245 ITR 428 (SC) wherein inter-alia it has been held that if a business liability has definitely arisen in accounting year, deduction should be allowed although liability may have to be quantified and discharged at a future date.” [8. The A.O. noted that assessee-company has debited expenditure of Rs.80,99,113/- towards “loss foreseeable on project” under t…

M/S Innoviti Payment Solutions Pvt Ltd, Bangalore vs. The Income Tax Officer Circle-3(1)(1), Bangalore

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

ITA 1278/BANG/2018[2014-15]Status: DisposedITAT Bangalore09 Jan 2019AY 2014-15

Bench: Shri A. K. Garodia & Shri Laliet Kumarm/S. Innoviti Payment Solutions Pvt. Ltd., Appellant No. 41, 2Nd & 3Rd Floor, Ngr The Edge, Iii Main, V Cross, Sai Baba Mandir Road, Halasuru, Bengaluru – 560008. Pan. Aabci0504M Vs The Ito, Ward – 3 (1) (1), Respondent Bengaluru. Assessee By : Shri B. M. Tambakar, C. A. Revenue By : Shri R. N. Sidappaji, Addl. Cit (Dr) Date Of Hearing : 07 – 12 – 2018 Date Of Pronouncement : 09 – 01 – 2019 O R D E R Per Bench: This Appeal Is Filed By The Assessee Which Is Directed Against The Order Of Cit (A) – 3, Bangalore Dated 23.02.2018 For A. Y. 2014 – 15. 2. The Grounds Raised By The Assessee Are As Under:- “1. Grounds Relating To Natural Justice The Learned Income Tax Officer 3(1)(1) (Hereinafter " Ad") & The Learned Commissioner Of Income Tax (Appeals) - 3 (Hereinafter "Cit-A") Have Erred In Passing The Order Without Considering All The Submissions & / Or Without Appreciating Properly The Facts & Circumstances Of The Case & Law Applicable. 2. Grounds Relating To Rejection Of Equity Shares Valuation Report Issued By Independent Chartered Accountant The Order Of The Learned Ao Passed Under Section 143(3) Of The Income Tax Act, 1961 (`The Act') & Confirmed By Learned Cit-A Is Erroneous In Reckoning That Share Premium Collected Is Above Fair Market Value & Thereby Liable To Tax In Pursuance To Section 56(2)(Viib) By Adopting Rule 11Ua(A) To The Exclusion Of The Option Under Rule 11Ua(B) As Opted By The Assessee Without Taking

For Appellant: Shri B. M. Tambakar, C. AFor Respondent: Shri R. N. Sidappaji, Addl. CIT (DR)
Section 143(3)Section 56Section 56(2)(viib)

…0 same Para of this report, some important points to be kept in mind with regard to cash flow projections are also noted. At this point, we feel it proper to take note of two judgments of Hon’ble apex court rendered in the case of Bharat earth Movers vs. CIT, 245 ITR 428 and in the case of Rotork Controls India (P) Ltd. vs. CIT, 314 ITR 62. In the first case, the issue in dispute was regarding estimation of future liability of leave encashment and it was held by Hon’ble apex court in this case that the liability should be capable of being estimated with reasonable certainty though the actual quantification may no…

ACIT, New Delhi vs. M/S. Graziano Transmission India Pvt. Ltd., New Delhi

In the result, the Appeal of the Revenue is dismissed

ITA 2575/DEL/2016[2010-11]Status: DisposedITAT Delhi09 Jan 2019AY 2010-11

Bench: Sh. H.S. Sidhu & Shri Prashant Maharishiassessment Year: 2010-11

Section 142(1)Section 143(2)Section 143(3)Section 195Section 37

…he AO has treated as hypothetical expenses. However, the main contention of the Ld. AR that the LTA is paid to the employees every year and it is also contended that this is a certain liability and for his the Ld. AR has relied on case of Bharat Earth Moves 245 ITR 428 SC and Vinitec Corporation 278 ITR 337 Delhi High Court. Apart from this the Ld. AR has also brought to my notice that the same expenditure was allowed by the AO in his order u/s. 143(3) for AY 2009-10 and AY 2011-12. So in other words, it is preceding year as well as the succeeding year the claim of the appellant has been accepted. The Ld. A…

M/S. Punjab National Bank, New Delhi vs. Addl.CIT, New Delhi

In the result appeal filed assessee stands partly allowed

ITA 5481/DEL/2014[2011-12]Status: DisposedITAT Delhi03 Jan 2019AY 2011-12

Bench: Smt. Beena A Pillai & Dr. B.R.R. Kumaray: 2011-12

For Appellant: Sh. Karan Khanna, AdvFor Respondent: Smt. Sulekha Verma, CIT, D.R
Section 14Section 142Section 143(1)Section 143(2)Section 14ASection 36(1)(vii)Section 43B

…urt in case of Exide Industries Ltd vs. Union of India reported in 292 ITR 470 had struck down constitutional validity of section 43B (f) of the Act being arbitrary, unconstitutional and de hors the facts of decision in case of Bharat Earth Movers reported in 245 ITR 428. 11.2. On contrary, Ld.Sr.DR placed reliance upon orders passed by authorities below and submitted that, certain deductions could be allowed, only on actual payment. He placed reliance upon decision of coordinate Bench in the case of Nainital Almora Kshetriya Bank in ITA No. 4240/Del/2012, ITA No. 5234/Del/2012 and ITA No. 5312/Del/2013 for Asses…