Calcutta Co. Ltd. v. CIT

Aditya Birla Nuvo Ltd ( Formerly Known As Indian Rayon and Industries Ltd), Mumbai vs. Addl CIT RG 3(2), Mumbai

…nly the payments actually made to his employees but also the present value of any payments in respect of their services in that year to be made in a subsequent year if it can be satisfactorily estimated. So is the view taken in Calcutta Co. Ltd. v. CIT [1959] 37 ITR 1 (SC) wherein this court has held that the liability on the assessee having been imported, the liability would be an accrued liability and would not convert into a conditional one merely because the liability was to be discharged at a future date. There may be some difficulty in the estimation thereof but that would not convert the accrued liability…

Addl CIT 3(2), Mumbai vs. Aditya Birla Nuvo Ltd ( Formerly Known As Indian Rayon & Industries Ltd), Mumbai

…nly the payments actually made to his employees but also the present value of any payments in respect of their services in that year to be made in a subsequent year if it can be satisfactorily estimated. So is the view taken in Calcutta Co. Ltd. v. CIT [1959] 37 ITR 1 (SC) wherein this court has held that the liability on the assessee having been imported, the liability would be an accrued liability and would not convert into a conditional one merely because the liability was to be discharged at a future date. There may be some difficulty in the estimation thereof but that would not convert the accrued liability…

Natvar Parikh & Co.P. Ltd, Mumbai vs. ACIT Cen Cir 40, Mumbai

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

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…has been dealt by the ITAT Special Bench in the case of Club Mahindra Holidays, 40 DTR 1, wherein after considering the decision of Hon’ble Supreme Court in the case of E.D.Sasoon, 26 ITR 27, Madras Industrial Corporation Ltd., 225 ITR 802, Calcutta Co. Ltd. 37 ITR 1 and in the case of Rotork Controls India Pvt. Ltd., 314 ITR 62, it was held that membership fee received for 33/25 years was liable to spread over the period of time for which such fee is received. Respectfully following the same, we direct the AO to tax 1/25th share of fee in each year, rather than taxing the entire sum in the year of receipt itsel…

ACIT Cen Cir 40, Mumbai vs. Natwar Parikh & Co. P. Ltd, Mumbai

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

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…has been dealt by the ITAT Special Bench in the case of Club Mahindra Holidays, 40 DTR 1, wherein after considering the decision of Hon’ble Supreme Court in the case of E.D.Sasoon, 26 ITR 27, Madras Industrial Corporation Ltd., 225 ITR 802, Calcutta Co. Ltd. 37 ITR 1 and in the case of Rotork Controls India Pvt. Ltd., 314 ITR 62, it was held that membership fee received for 33/25 years was liable to spread over the period of time for which such fee is received. Respectfully following the same, we direct the AO to tax 1/25th share of fee in each year, rather than taxing the entire sum in the year of receipt itsel…

Natvar Parikh & Company Pvt.Ltd., Mumbai vs. The Dy.C.I.T., Central Circle 40, Mumbai

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

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…has been dealt by the ITAT Special Bench in the case of Club Mahindra Holidays, 40 DTR 1, wherein after considering the decision of Hon’ble Supreme Court in the case of E.D.Sasoon, 26 ITR 27, Madras Industrial Corporation Ltd., 225 ITR 802, Calcutta Co. Ltd. 37 ITR 1 and in the case of Rotork Controls India Pvt. Ltd., 314 ITR 62, it was held that membership fee received for 33/25 years was liable to spread over the period of time for which such fee is received. Respectfully following the same, we direct the AO to tax 1/25th share of fee in each year, rather than taxing the entire sum in the year of receipt itsel…

Natvar Parikh & Company Pvt.Ltd., Mumbai vs. The Dy.C.I.T., Central Circle 40, Mumbai

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

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…has been dealt by the ITAT Special Bench in the case of Club Mahindra Holidays, 40 DTR 1, wherein after considering the decision of Hon’ble Supreme Court in the case of E.D.Sasoon, 26 ITR 27, Madras Industrial Corporation Ltd., 225 ITR 802, Calcutta Co. Ltd. 37 ITR 1 and in the case of Rotork Controls India Pvt. Ltd., 314 ITR 62, it was held that membership fee received for 33/25 years was liable to spread over the period of time for which such fee is received. Respectfully following the same, we direct the AO to tax 1/25th share of fee in each year, rather than taxing the entire sum in the year of receipt itsel…

The ADIT (I.T)3(1) vs. M/S. Honkong & Shanghani Banking Corpn. Ltd

In the result, ITA Nos.2519 and 2520/Mum/2004 by revenue stand dismissed, ITA No

Bench: S/Shri B.R.Baskaran, Am & Pawan Singh, Jm आयकर अपील सं./I.T.A. No.2519 & 2520/Mum/2004 ("नधा"रण वष" / Assessment Year:1999-2000 & 2000-01) M/S Hongkong & Shanghani Asstt.Direrctor Of Income Tax बनाम/ Banking Corporation Ltd., (International Taxation)-3(1), Vs. 52/60, M G Road, 136, Scindia House, Mumbai-400001 N M Marg, Ballard Estate, Mumbai-400038 .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

…llowing decisions : a) ACIT V/s M/s Shoppers Stop Ltd –ITA No.1835/Mum/2010 (AY- 2003-04) dated 25.1.2012; b) Syndicate bank V/s DCIT (Bang ITAT) –(2013) 38 taxmann.com 25); c) Bharat Earth Movers V/s CIT -245 ITR 428 (SC); d) Calcutta Co. Ltd. vs. CIT (1959) 37 ITR 1 (SC); e) Rotork India Pvt. Ltd. Vs. CIT reported in 314 ITR 63 (SC); f) Taparia Tools Ltd v Joint CIT [2003] 260 ITR 102 (Bom),; g) Vinitee Corporation (P) Ltd. (2005) 146 Taxman 313 (Delhi); and h) CIT v. Beema Manufacturers P. Ltd. (2003) 130 Taxman 400 (Mad) 24 and other six appeals 87. We find that the ld.CIT(A) has considered this issue with d…

Innovative Constructions P. Ltd, Mumbai vs. DCIT 5(2), Mumbai

In the result, the appeal of the assessee is allowed and the appeal of the revenue stands dismissed

…ng and hence it is not necessary that the assessee should have actually disbursed the money in order to claim the expenditure. The above said view finds support from the decision rendered by Hon’ble Supreme Court in the case of Calcutta Co. Ltd Vs. CIT (1959)(37 ITR 1), wherein the Hon’ble Apex Court has held that the estimated expenditure which had to be incurred by the assessee in discharging the liability which it had undertaken under the terms of agreement was an accrued liability and under the mercantile system of accounting, the assessee is entitled to debit in its books of accounts as against the sales rec…

ITO 5(2)(1), Mumbai vs. Innovative Constructions P.Ltd, Mumbai

In the result, the appeal of the assessee is allowed and the appeal of the revenue stands dismissed

…ng and hence it is not necessary that the assessee should have actually disbursed the money in order to claim the expenditure. The above said view finds support from the decision rendered by Hon’ble Supreme Court in the case of Calcutta Co. Ltd Vs. CIT (1959)(37 ITR 1), wherein the Hon’ble Apex Court has held that the estimated expenditure which had to be incurred by the assessee in discharging the liability which it had undertaken under the terms of agreement was an accrued liability and under the mercantile system of accounting, the assessee is entitled to debit in its books of accounts as against the sales rec…

Mattel Toys (India) P Ltd, Mumbai vs. ITO 6(3)-4, Mumbai

In the result, appeal of the Revenue is allowed

Bench: Shri D. Karunakara Rao & Shri Sandeep Gosainc.O. No.161/M/2012 (Arising Out Of Ita No.6519/M/2011) (Ay 2003-04) M/S. Mattel Toys (India) P Ltd, फनाभ/ Ito-6(3)(4), 4Th Floor, B Wing, Phoenix R.No.522, 5 Th Floor, Aayakar Vs. House, 462, Senapati Bapat Bhavan, M.K. Road, Marg, Lower Parel, Mumbai-13. Mumbai-20. स्थामी रेखा सं./ Pan : Aaccm2563P (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) फनाभ/ Ito-6(3)(4), M/S. Mattel Toys (India) P R.No.522, 5 Th Floor, Aayakar Ltd, 4Th Floor, B Wing, Vs. Bhavan, M.K. Road, Mumbai-20. Phoenix House, 462, Senapati Bapat Marg, Lower Parel, Mumbai-13. स्थामी रेखा सं./ Pan : Aaccm2563P (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent)

…f accounting, therefore, irrespective of the actual cash flow, the expenses incurred towards earning an income should be considered to determine the taxable profits. For this proposition, Ld AR relied on the Apex Court judgment in the case of Calcutta Co Ltd (37 ITR 1)(SC) wherein it has been held that any sum representing the estimated expenditure which had to be incurred by the assessee in discharging a liability. Alternatively, it is the submission of the assessee that since the expenses are actually incurred during the FY 2003-2004, the expenses should be allowed for AY 2004-05 corresponding to the FY 2003-2…

Inventurus Knowledge Services P.Ltd, Navi Mumbai vs. ITO 5(2)(1), Mumbai

In the result appeal of the assessee company is partly allowed

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: - 2009-10 Inventurus Knowledge Services V. Income Tax Officer Pvt. Ltd. 5(2)(1), C/O. Seren Properties Pvt. Ltd. 525, Aaykar Bhavan, (Sez), Unit No. 204, Build No. 5, M.K. Road, Mindspace Airoli Camp, Plot No. Mumbai - 400 020. 3, Gat No. 95, Kalwa Trans, Thane Creek, Midc Industrial Area, Thane Belapur Road, Airoli, Navi Mumbai – 400 708. Pan/Gir No. Aabck4601P

…nly the payments actually made to his employees but also the present value of any payments in respect of their services in that year to be made in a subsequent year if it can be satisfactorily estimated. So is the view taken in Calcutta Co. Ltd. v. CIT (1959) 37 ITR 1 (SC) : TC 16R.197 wherein this court has held that the liability on the assessee having been imported, the liability would be an accrued liability and would not convert into a conditional one merely because the liability was to be discharged at a future date. There may be some difficulty in the estimation thereof but that would not convert the accru…