Calcutta Co. Ltd. v. CIT

Kp Sanghvi Infrastructure P.Ltd( Formelry Knwon As Somnath Project Organizers P.Ltd, Mumbai vs. ITO WD 5(2)2, Mumbai

In the result, the appeal filed by the assessee in ITA No

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.6157/Mum/2012 ("नधा"रण वष" / Assessment Year : 2006-07) K.P. Sanghvi Infrastructures Income Tax Officer – Ward बनाम/ Private Limited, – 5(2)(2), V. (Formerly Known As Somnath 5 Th Floor, Project Organizers Private Aayakar Bhavan, Limited) M.K. Road, 1301, Prasad Chambers, Mumbai 400 020. Opera House, Mumbai – 400 004. "थायी लेखा सं./Pan : Aafcs5184H (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

…Bank of Travancore v. CIT (1986) 158 ITR 102 (SC) 2. Decision of Hon'ble Bombay High Court in the case of Western India Oil Distributing Co. Ltd. v. CIT (1994) 206 ITR 359 (Bom). ITA 6157/Mum/2012 9 3. Decision in the case of Calcutta Co. Ltd v. CIT (1959) 37 ITR 1 (SC). Thus, the ld. CIT(A) confirmed the addition made by the A.O vide appellate orders dated 19.07.2012 . 6. Aggrieved by the appellate order dated 19.07.2012 of the ld. CIT(A), the assessee is in appeal before the Tribunal. 7. The ld. Counsel for the assessee submitted that the assessee is engaged in the business of construction industry as a r…

DCIT 17(1), Mumbai vs. M/S S.M. Steel, Mumbai

In the result appeal of the Revenue is dismissed

Bench: Shri R.C. Sharma() & Shri Amarjeet Singh ()

…45 even though such method is being employed consistently. But the powers of the Assessing Officer under the first proviso are not arbitrary and must be exercised in a judicious manner. The Supreme court decision in the case of Calcutta Co. Ltd. v. CIT [1959] 37 ITR 1 (SC) followed. 16. The recent decision of Delhi High Court in the case of Commissioner of Income-tax v. Jagatjit Industries Ltd. reported in 339 ITR 382 is worth mentioning here. The findings of Hon.High Court was that when the Department has accepted a particular method of accounting system followed by the assessee consistently, then the same can…

JCIT 17(1), Mumbai vs. S.M. Steels, Mumbai

In the result appeal of the Revenue is dismissed

Bench: Shri R.C. Sharma() & Shri Amarjeet Singh ()

…45 even though such method is being employed consistently. But the powers of the Assessing Officer under the first proviso are not arbitrary and must be exercised in a judicious manner. The Supreme court decision in the case of Calcutta Co. Ltd. v. CIT [1959] 37 ITR 1 (SC) followed. 16. The recent decision of Delhi High Court in the case of Commissioner of Income-tax v. Jagatjit Industries Ltd. reported in 339 ITR 382 is worth mentioning here. The findings of Hon.High Court was that when the Department has accepted a particular method of accounting system followed by the assessee consistently, then the same can…

Asst CIT 16(3), Mumbai vs. K.P. Sanghvi & Sons, Mumbai

In the result, the appeal of the revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am The Asst. Commissioner Of Vs. M/S K P Sanghvi & Sons, Income Tax -16(3), Matru 1301, Prasad Chambers, Mandir, Tardeo Road, Operahouse,Mumbai-4 Mumbai-400007 Pan:Aaafk8390F .. Appellant Respondent Appellant By .. Sri R P Meena Respondent By .. Sri K Shivram Date Of Hearing .. 29-09-2016 Date Of Pronouncement .. 29 -09- 2016 O R D E R Per Mahavir Singh, Jm: This Appeal By The Revenue Is Arising Out Of The Order Of The Cit (Appeals)-27, Mumbai In Appeal No.Cit(A)-27/Ac-16(3)/135/13-14 Dated 22.4.2014. Assessment Was Framed By The Acit- Circle 16(3), Mumbai For The Assessment Year 2009-10 Vide His Order Dated 28.3.2013 U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter “The Act”).

…binding contract is enacted, it becomes allowable. Further reference could be made to Bharat Earth Movers v, CIT [2000] 245 ITR 4281 112 Taxman 61 (SC), Metal Box Co. of India . Ltd. v. Their Workmen [1969] 73 ITR 53 (SC) .and Calcutta Co. Ltd. v. CIT [1959] 37 ITR 1(SC) 2.4.16 In the case of DCIT vIs Bank of Bahrain & Kuwait(supra), forward contracts were entered of an amount to protect the fluctuations in the foreign currency held as stock-in-trade. Forward contracts value entered by. Bank of Bahrain & Kuwait had nothing to do with the foreign currency held as stock-in-trade except protecting fluctuations, whi…

ACIT 9(1), Mumbai vs. Aakash Lavlesh Leisure P.Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ant assessment year , then deduction should be allowed with respect to the present value of expenditure likely to be incurred on members, which proposition is supported by decision of Hon’ble Supreme Court in the case of Calcutta Company Limited v. CIT (1959) 37 ITR 1(SC) and other decisions. This proposition it was submitted as supported by para 19 of Accounting Standard 18 issued by ICAI, which is called matching concept whereby there is matching of revenue and expenses . ITA 7905 & 8140/Mum/2011 13 & ITA no. 5316 & 5337-5339/Mum/2012 It was also submitted by the assessee that the Revenue had examined and a…

ACIT 9(1), Mumbai vs. Aakash Lavlesh Leisure P.Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ant assessment year , then deduction should be allowed with respect to the present value of expenditure likely to be incurred on members, which proposition is supported by decision of Hon’ble Supreme Court in the case of Calcutta Company Limited v. CIT (1959) 37 ITR 1(SC) and other decisions. This proposition it was submitted as supported by para 19 of Accounting Standard 18 issued by ICAI, which is called matching concept whereby there is matching of revenue and expenses . ITA 7905 & 8140/Mum/2011 13 & ITA no. 5316 & 5337-5339/Mum/2012 It was also submitted by the assessee that the Revenue had examined and a…

ACIT 9(1), Mumbai vs. Aakash Lavlesh Leisure P.Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ant assessment year , then deduction should be allowed with respect to the present value of expenditure likely to be incurred on members, which proposition is supported by decision of Hon’ble Supreme Court in the case of Calcutta Company Limited v. CIT (1959) 37 ITR 1(SC) and other decisions. This proposition it was submitted as supported by para 19 of Accounting Standard 18 issued by ICAI, which is called matching concept whereby there is matching of revenue and expenses . ITA 7905 & 8140/Mum/2011 13 & ITA no. 5316 & 5337-5339/Mum/2012 It was also submitted by the assessee that the Revenue had examined and a…

Addl CIT 9(1), Mumbai vs. Aakash Lavlesh Leisure P.Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ant assessment year , then deduction should be allowed with respect to the present value of expenditure likely to be incurred on members, which proposition is supported by decision of Hon’ble Supreme Court in the case of Calcutta Company Limited v. CIT (1959) 37 ITR 1(SC) and other decisions. This proposition it was submitted as supported by para 19 of Accounting Standard 18 issued by ICAI, which is called matching concept whereby there is matching of revenue and expenses . ITA 7905 & 8140/Mum/2011 13 & ITA no. 5316 & 5337-5339/Mum/2012 It was also submitted by the assessee that the Revenue had examined and a…

ITO 9(1)(1), Mumbai vs. Aakash Lavlesh Leisure (P) Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ant assessment year , then deduction should be allowed with respect to the present value of expenditure likely to be incurred on members, which proposition is supported by decision of Hon’ble Supreme Court in the case of Calcutta Company Limited v. CIT (1959) 37 ITR 1(SC) and other decisions. This proposition it was submitted as supported by para 19 of Accounting Standard 18 issued by ICAI, which is called matching concept whereby there is matching of revenue and expenses . ITA 7905 & 8140/Mum/2011 13 & ITA no. 5316 & 5337-5339/Mum/2012 It was also submitted by the assessee that the Revenue had examined and a…

Aakash Lavlesh Leisure P. Ltd, Mumbai vs. ITO 9(1)(1), Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ant assessment year , then deduction should be allowed with respect to the present value of expenditure likely to be incurred on members, which proposition is supported by decision of Hon’ble Supreme Court in the case of Calcutta Company Limited v. CIT (1959) 37 ITR 1(SC) and other decisions. This proposition it was submitted as supported by para 19 of Accounting Standard 18 issued by ICAI, which is called matching concept whereby there is matching of revenue and expenses . ITA 7905 & 8140/Mum/2011 13 & ITA no. 5316 & 5337-5339/Mum/2012 It was also submitted by the assessee that the Revenue had examined and a…

ACIT 10(1), Mumbai vs. Shivshahi Punarvasan Prakalp Ltd, Mumbai

In the result, the Revenue’s appeals for A

…in computing the income under the Act, with the assessee rather itself conceding to AS-2 (‘Valuation of Inventories’, issued by ICAI, New Delhi) being applicable in its case. Reliance was placed on the decisions in the case of Calcutta Co. Ltd. vs. CIT [1959] 37 ITR 1 (SC); Metal Box Company of India Ltd. vs. Their Workmen [1969] 73 ITR 53 (SC); and Bharat Earth Movers vs. CIT [2000] 245 ITR 428 (SC). We reproduce the relevant part of the tribunal’s order as under: ‘2.11.1 to 2.11.2 …………. 2.11.3 A careful perusal of the Accounting Standards AS-1 & AS-2 notified above shows that these are only regarding disclosur…

SHI vs. Hahi Punarvasan Prakalp Ltd, Mumbai

In the result, the Revenue’s appeals for A

…in computing the income under the Act, with the assessee rather itself conceding to AS-2 (‘Valuation of Inventories’, issued by ICAI, New Delhi) being applicable in its case. Reliance was placed on the decisions in the case of Calcutta Co. Ltd. vs. CIT [1959] 37 ITR 1 (SC); Metal Box Company of India Ltd. vs. Their Workmen [1969] 73 ITR 53 (SC); and Bharat Earth Movers vs. CIT [2000] 245 ITR 428 (SC). We reproduce the relevant part of the tribunal’s order as under: ‘2.11.1 to 2.11.2 …………. 2.11.3 A careful perusal of the Accounting Standards AS-1 & AS-2 notified above shows that these are only regarding disclosur…

Ald Automotive P.Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

In the result, the assessee’s appeals are allowed for statistical purposes, while the Revenue’s appeals are dismissed

Bench: Shri Sanjay Arora, Am & Shri Amit Shukla, Jm आयकर अपील सं./I.T.A. Nos. 907 & 109/Mum/2013 ("नधा"रण वष" / Assessment Years: 2008-09 & 2007-08) Ald Automotive Pvt. Ltd. Dy. Cit, Circle 3(1), बनाम/ 13Th Floor, Maker Chamber Iv, Room No. 607, 6Th Floor, Vs. Nariman Point, Mumbai-400 021 Aaykar Bhawan, Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aafca 0924 K (Assessee) (Revenue) : & आयकर अपील सं./I.T.A. Nos. 2179 & 601/Mum/2013 ("नधा"रण वष" / Assessment Years: 2008-09 & 2007-08) Dy. Cit, Circle 3(1), Ald Automotive Pvt. Ltd. बनाम/ Room No. 607, 6Th Floor, 13Th Floor, Maker Chamber Iv, Vs. Aaykar Bhawan, Mumbai-400 020 Nariman Point, Mumbai-400 021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aafca 0924 K (Revenue) : (Assessee) Assessee By : Shri Brijmohan P. Agarwal Revenue By : Shri B. B. Rajendra Prasad सुनवाई क" तार"ख / : 26.4.2016 Date Of Hearing घोषणा क" तार"ख / : 25.7.2016 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: These Are Cross Appeals, I.E., By The Assessee & The Revenue, For Two Consecutive Years, Being Assessment Years (A.Y.) 2007-08 & 2008-09, U/S. 253 Of (A.Ys. 2007-08 & 2008-09) Ald Automotive Pvt. Ltd. The Income Tax Act, 1961 (‘The Act’ Hereinafter), Arising Out Of The Orders By The Commissioner Of Income Tax (Appeals)-5, Mumbai (‘Cit(A)’ For Short) Dated 31.12.2012. The Appeals Raise Two Issues, One Brought By The Assessee & The Other By The Revenue, I.E., With Regard To: A) Depreciation On Lease Assets; & B) Transfer (Of A Part) Of Fleet Management Charges To Maintenance Accounts

…therefore, corresponding services, are liable to be rendered over the lease term – as indicated by the corresponding expenditure, the accounting treatment is in consonance with AS-9. The assessee’s reliance on the decisions in Calcutta Co. Ltd. vs. CIT [1959] 37 ITR 1 (SC) and Madras Industrial Investment Corporation Ltd. vs. CIT [1997] 225 ITR 802 (SC), (A.Ys. 2007-08 & 2008-09) ALD Automotive Pvt. Ltd. both advocating the matching principle, is apposite. The AO shall cause necessary verification as indicated above, subject to whose findings of fact we allow the assessee’s claim. We may further add that the asse…

DCIT 3(1), Mumbai vs. Ald Automotive P.Tld, Mumbai

In the result, the assessee’s appeals are allowed for statistical purposes, while the Revenue’s appeals are dismissed

Bench: Shri Sanjay Arora, Am & Shri Amit Shukla, Jm आयकर अपील सं./I.T.A. Nos. 907 & 109/Mum/2013 ("नधा"रण वष" / Assessment Years: 2008-09 & 2007-08) Ald Automotive Pvt. Ltd. Dy. Cit, Circle 3(1), बनाम/ 13Th Floor, Maker Chamber Iv, Room No. 607, 6Th Floor, Vs. Nariman Point, Mumbai-400 021 Aaykar Bhawan, Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aafca 0924 K (Assessee) (Revenue) : & आयकर अपील सं./I.T.A. Nos. 2179 & 601/Mum/2013 ("नधा"रण वष" / Assessment Years: 2008-09 & 2007-08) Dy. Cit, Circle 3(1), Ald Automotive Pvt. Ltd. बनाम/ Room No. 607, 6Th Floor, 13Th Floor, Maker Chamber Iv, Vs. Aaykar Bhawan, Mumbai-400 020 Nariman Point, Mumbai-400 021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aafca 0924 K (Revenue) : (Assessee) Assessee By : Shri Brijmohan P. Agarwal Revenue By : Shri B. B. Rajendra Prasad सुनवाई क" तार"ख / : 26.4.2016 Date Of Hearing घोषणा क" तार"ख / : 25.7.2016 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: These Are Cross Appeals, I.E., By The Assessee & The Revenue, For Two Consecutive Years, Being Assessment Years (A.Y.) 2007-08 & 2008-09, U/S. 253 Of (A.Ys. 2007-08 & 2008-09) Ald Automotive Pvt. Ltd. The Income Tax Act, 1961 (‘The Act’ Hereinafter), Arising Out Of The Orders By The Commissioner Of Income Tax (Appeals)-5, Mumbai (‘Cit(A)’ For Short) Dated 31.12.2012. The Appeals Raise Two Issues, One Brought By The Assessee & The Other By The Revenue, I.E., With Regard To: A) Depreciation On Lease Assets; & B) Transfer (Of A Part) Of Fleet Management Charges To Maintenance Accounts

…therefore, corresponding services, are liable to be rendered over the lease term – as indicated by the corresponding expenditure, the accounting treatment is in consonance with AS-9. The assessee’s reliance on the decisions in Calcutta Co. Ltd. vs. CIT [1959] 37 ITR 1 (SC) and Madras Industrial Investment Corporation Ltd. vs. CIT [1997] 225 ITR 802 (SC), (A.Ys. 2007-08 & 2008-09) ALD Automotive Pvt. Ltd. both advocating the matching principle, is apposite. The AO shall cause necessary verification as indicated above, subject to whose findings of fact we allow the assessee’s claim. We may further add that the asse…