Calcutta Co. Ltd. v. CIT

Commissioner of Income Tax vs. M/S Vodafone Essar South Ltd

…ars and relevant bills had not been received. This would not make the provisions a contingent liability. 13. Appropriate would be to refer to the decision of the Supreme Court in Calcutta Company Ltd. Vs. Commissioner of Income Tax, West Bengal, (1959) 37 ITR 1, wherein it was held that if liability has been definitely incurred in form of unconditional contractual liability, it would not become contingent because payment has to be paid in future. However, liability should have been fairly and accurately estimated. The following passage from the said decision is relevant:- “Turning now to the fac…

New Holland Tractors (India) Private Limited

…Dinesh Kumar Goel, (2011) 331 ITR 10, wherein earlier judgments of the Supreme Court in E.D. Sassoon and Company Limited versus Commissioner of Income Tax, (1954) 26 ITR 27 and Calcutta Company Limited versus Commissioner of Income Tax, West Bengal (1959) 37 ITR 1 were elucidated and explained. In Dinesh Kumar Goel (supra), the respondent- assessee, a coaching institute, following mercantile system of accounting had received the total fee for the entire course on enrolment or at the time 2014:DHC:5004-DB ITA Nos. 182/2002 & 255/2003…

Commissioner of Income Tax-X vs. Smt Paramjeet Luthra

…it would lead to an anomaly. Income/receipt would be taxed in one year, and expenditure in the other years. Reference was made to the decisions of the Supreme Court in E.D. Sassoon and Co. Ltd. Vs. CIT [1954] 26 ITR (SC), Calcutta Co. Ltd. Vs. CIT [1959] 37 ITR 1 (SC) and CIT Vs. Woodward Governor India (P) Ltd. [2010]321ITR147(Delhi). 10. In Rotork Controls India (P) Ltd. Vs. Commissioner of Income Tax, Chennai [2009] 314 ITR 62(SC), while interpreting section 37 of the Income Tax Act, 1961, the Supreme Court observed that a “provision” is a liability which can be measured only by using a substant…

Oswal Agro Mills Ltd vs. Commissioner of Income Tax

The appeal stands disposed of with no order as to

…s challenged the levy of additional custom duty and the amount is not quantified. In support of this contention, the appellant has relied on decisions in Kedarnath Jute Manufacturing Co. Ltd. v. CIT: (1971)82 ITR 363 (SC), Calcutta Co. ltd. v. CIT: (1959) 37 ITR 1 (SC), ACIT v. Rattan Chand Kapoor: (1984) 149 ITR 1 (Del.), CIT v. Kwality Ice Cream: (2008) 304 ITR 384 (Del.) and Bharat Earth Movers v. CIT: (2000) 245 ITR 428 (SC). 16. It was submitted that since the subject liability was in the nature of a trading liability which had accrued, the same could not be treated as a contingent liability. It…

Oswal Agro Mills Ltd vs. Commissioner of Income Tax

The appeal stands disposed of with no order as to

…s challenged the levy of additional custom duty and the amount is not quantified. In support of this contention, the appellant has relied on decisions in Kedarnath Jute Manufacturing Co. Ltd. v. CIT: (1971)82 ITR 363 (SC), Calcutta Co. ltd. v. CIT: (1959) 37 ITR 1 (SC), ACIT v. Rattan Chand Kapoor: (1984) 149 ITR 1 (Del.), CIT v. Kwality Ice Cream: (2008) 304 ITR 384 (Del.) and Bharat Earth Movers v. CIT: (2000) 245 ITR 428 (SC). 16. It was submitted that since the subject liability was in the nature of a trading liability which had accrued, the same could not be treated as a contingent liability. It…

Commissioner of Income Tax vs. M/S. Dcm Shriram Consolidated Ltd

…ssful. Therefore, it appealed to the ITAT. 3. Before the ITAT, the assessee relied upon the decisions of Supreme Court in the cases of Badridas Daga Vs. CIT, 34 ITR 10 (SC); Calcutta 2012:DHC:4648-DB ITA 1289/2010 Page 3 Discount Company Vs. CIT, 37 ITR 1 (SC); and Madeva Upendra Sinai Vs. CIT 98 ITR 209 (SC). After considering the rival contentions, the ITAT allowed the assessee’s appeal. It reasoned that: “12. We have heard both sides and find ourselves in complete agreement with the contention of the assessee. There is no dispute that the assessee had been purchasing these containers requi…

CIT vs. Casio India Ltd

Appeal is dismissed

…curred which admittedly have nexus with the business of the assessee, it was treated as business expenditure allowable under Section 37 of the Act. The Tribunal also relied upon the judgment of Supreme Court in the cases of Calcutta Company Ltd. Vs. CIT, 37 ITR 1, CIT Vs. Associated Cement Companies Ltd, 172 ITR 257, Empire Jute Company Ltd. Vs. CIT, 124 ITR 01 and judgment of this Court in CIT Vs. Salora International Ltd. 308 ITR 199. 2011:DHC:2630-DB ITA No.10 of 2011 Page 5 of 5 17. We are in agreement with the aforesaid view taken by the Tribunal and hold that the exp…

CIT vs. Citi Financial Consumer Finance India Ltd

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

…curred which admittedly have nexus with the business of the assessee, it was treated as business expenditure allowable under Section 37 of the Act. The Tribunal also relied upon the judgment of Supreme Court in the cases of Calcutta Company Ltd. Vs. CIT, 37 ITR 1, CIT Vs. Associated Cement Companies Ltd, 172 ITR 257, Empire Jute Company Ltd. Vs. CIT, 124 ITR 01 and judgment of this Court in CIT Vs. Salora International Ltd. 308 ITR 199. 17. We are in agreement with the aforesaid view taken by the Tribunal and hold that the expenditure was required to be allowed as revenue/business expenditure incu…

CIT vs. Citi Financial Consumer Finance India Ltd

…ncurred which admittedly have nexus with the business of the assessee, it was treated as business expenditure allowable under Section 37 of the Act. The Tribunal also relied upon the judgment of Supreme Court in the cases of Calcwtta Cornpany Ltd, Ys. ClT, 37 ITR 1, CIT Vs. Associated Cernent Companfes [-td, I72 ITR 257, En 'tpire jute Campany Ltd. Vs. CIT, 724 ITR 0L and judgment of this Court in CfTVs, Salora lnternationatr l-td. 308 ITR 799. 17. We are in agreement with the aforesaid yiew,taken by. the Tribunal and hold that the expenditure was required to be allowed as revenue/business expenditure incu…

CIT vs. Citi Financial Consumer Finance India Ltd

…ed which admittedly have nexus with the business of the assessee, it was treated as business expenditure allowable under Section 37 of the Act. The Tribunal also relied upon the judgment of Supreme Court in the cases ofCaffclLIftta Company !Ltd. Vs. Clfup 37 ITR 1, CDT Vs. Associated Cement Companies IL.tdp 172 iTR 257 p JErrrlJpirre jllllte Company Ltd. Vs. CITp 124 ITR 01. and judgment of this Court in CIT Vs. Safora ffnternationaf Ltd. 308 ITR 199. 17. We are in agreement with the aforesaid view taken by the Tribunal and hold that the expenditure was required to be allowed as revenue/business expend…

Commissioner of Income Tax Delhi VI vs. Whirphool of India Ltd

Appeal is disposed of in the aforesaid terms

Bench: Pointing Out The Questions Of Law Which Were Framed While Admitting This Appeal & To Answer Those Questions, We Deem It Appropriate To Take Note Of The Facts Under Which These Questions Have Arisen For Consideration. 2. In The Assessment Year 1996-97 Relevant To Financial Year 1995-96, The Respondent/Assessee Had Filed Its Return Of Income On 30Th November, 1996 Declaring A Loss Of ` 48.71 Crores. This Income Was Assessed Under Section 143 (3) Of The Income-Tax Act (Hereinafter Referred To As The „Act‟) Making Various Additions. The Assessing Officer Assessed The Loss At ` 45.25 Crores Instead Of `

…led law that even though there is some difficulty in estimation, it would not convert the accrued liability into an additional one or a contingent liability. Reference can be made to the decision of Hon‟ble Supreme Court in the case of Calcutta Co. Ltd. 37 ITR 1 and that of Bharat Earth Movers Ltd. 245 ITR 428. The Hon‟ble Karnataka High Court in the case of Motor Industries Co. Ltd. (supra) held that where the assessee is required to make provision for additional gratuity liability ITA No.1154/2009 Page 6 of 22 pertaining to the past services, the same is held to be…

Commissioner of Income Tax Delhi VI vs. Whirphool of India Ltd

Appeal is disposed of in the aforesaid terms

Bench: Pointing Out The Questions Of Law Which Were Framed While Admitting This Appeal & To Answer Those Questions, We Deem It Appropriate To Take Note Of The Facts Under Which These Questions Have Arisen For Consideration. 2. In The Assessment Year 1996-97 Relevant To Financial Year 1995-96, The Respondent/Assessee Had Filed Its Return Of Income On 30Th November, 1996 Declaring A Loss Of ` 48.71 Crores. This Income Was Assessed Under Section 143 (3) Of The Income-Tax Act (Hereinafter Referred To As The „Act‟) Making Various Additions. The 2011:Dhc:428-Db

…led law that even though there is some difficulty in estimation, it would not convert the accrued liability into an additional one or a contingent liability. Reference can be made to the decision of Hon‟ble Supreme Court in the case of Calcutta Co. Ltd. 37 ITR 1 and that of Bharat Earth Movers Ltd. 245 ITR 428. The Hon‟ble Karnataka 2011:DHC:428-DB pertaining to the past services, the same is held to be an allowable deduction. Thus the ration laid down can help the case of the assessee in the sense that even if the sales were affected in the past, the additional liability on the re-appreciation…

Commissioner of Income Tax vs. Triveni Engineering & Industries Ltd

…he contract, has to be provided for and allowed deduction against the revenues from the contract. He also relied upon the case of the Supreme Court in the case of the Supreme Court in the case of Calcutta Company Limited Vs. Commissioner of Income Tax [37 ITR 1] that the present case was parallel to the said case where matching principle was applied by the Apex Court. 4) Last weapon which is used by Mr. Vohra from his armoury was that the issue raised by the Revenue, in any case, was only academic as the entire exercise was revenue neutral. 11. After considering the submissions, the counsel on the…

Deputy Commissioner of Income Tax vs. Curls & Curves India Ltd

…out acquiring the right to receive it as income, as services had yet to be rendered and it would be in the nature of advance. Only when the services were rendered, it will become income in the hands of the appellant. In case of Calcutta C. Ltd. Vs. CIT 37 ITR 1 the assessee dealt in land and property and carried on land developing business. The whole development was not carried out when the plot was sold. The appellant credited Rs.43,692 and also estimated Rs.24,809 as the expenditure for development to be carried out. There was no actual disbursement of the expenditure. It was held by the…

Deputy Commissioner of Income Tax vs. Curls & Curves India Ltd

…out acquiring the right to receive it as income, as services had yet to be rendered and it would be in the nature of advance. Only when the services were rendered, it will become income in the hands of the appellant. In case of Calcutta C. Ltd. Vs. CIT 37 ITR 1 the assessee dealt in land and property and carried on land developing business. The whole development was not carried out when the plot was sold. The appellant credited Rs.43,692 and also estimated Rs.24,809 as the expenditure for development to be carried out. There was no actual disbursement of the expenditure. It was held by the…

Commissioner of Income Tax vs. Woodward Governor India Pvt. Ltd

The appeal is dismissed

…ues' the minute the contract is entered into and continues till it is fully discharged. This liability is neither contingent nor notional. Reliance is placed on decisions in E.D.Sasoon & Company Ltd. -vs- CIT, 26 ITR 27 (SC), Calcutta Company Ltd. -vs- CIT, 37 ITR 1 (SC), Bharat Earth Movers Ltd. – vs- CIT, 245 ITR 428(SC), CIT -vs- BHEL, 239 ITR 756, CIT -vs- Bank of India, 218 ITR 371 and CIT -vs- IBM, 161 ITR 673 (Bombay). (f) As far as the capital account cases are concerned, the Statement of Object and Reasons appended to the Bill preceding the introduction of Section 43-A with effect from 1-4-1967…

Commissioner of Income Tax vs. India Pvt. Ltd

The appeal is dismissed

…ues' the minute the contract is entered into and continues till it is fully discharged. This liability is neither contingent nor notional. Reliance is placed on decisions in E.D.Sasoon & Company Ltd. -vs- CIT, 26 ITR 27 (SC), Calcutta Company Ltd. -vs- CIT, 37 ITR 1 (SC), Bharat Earth Movers Ltd. – vs- CIT, 245 ITR 428(SC), CIT -vs- BHEL, 239 ITR 756, CIT -vs- Bank of India, 218 ITR 371 and CIT -vs- IBM, 161 ITR 673 (Bombay). (f) As far as the capital account cases are concerned, the Statement of Object and Reasons appended to the Bill preceding the introduction of Section 43-A with effect from 1-4-1967…