Calcutta Co. Ltd. v. CIT

37 ITR 1Supreme Court of India1959#224 most cited

What is Calcutta Co. Ltd. v. CIT authority for?

When following the mercantile system of accounting, provisions for liabilities made on a scientific and rational basis are allowable as deductions, even if their actual quantification and discharge are deferred to a future date.

341

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2000 to 2026.

Also referred to as

Calcutta Co. Ltd. v. CIT · mercantile system of accounting · Section 37 · allowable deductions · provision for liabilities · unascertained liabilities · deferred payment

Sections most often in play

Section 37(1)Section 143(3)Section 14ASection 115JBSection 147Section 148Section 36(1)(vii)Section 36(1)(viia)
Read the full judgment

Issues it is cited on

mercantile system of accountingsection 37section 37(1)section 36(1)section 36section 40salaryprevious yearindiacompanytransferbusiness

Judgments citing Calcutta Co. Ltd. v. CIT

DCIT, New Delhi vs. M/S Ajay Enterprises Pvt. Ltd., New Delhi

Appeal is dismissed and appeal of the assessee in ITA No

ITA 1349/DEL/2013[2009-10]Status: DisposedITAT Delhi30 Jul 2021AY 2009-10

Bench: Shri Amit Shukla & Shri Dr. B.R.R. Kumar

For Appellant: S/Shri Pradeep Dinodia & R.KFor Respondent: Date of hearing
Section 143(3)Section 41(1)

…nted for and are legally allowable, following judgments are relied upon: a. Supreme Court in the case of Bharat Earth Movers (2004) 245 ITR 428 (SC). b. Metal Box Company of India Ltd. V. Their Workmen (1969) 73 ITR 53 (SC). c. Calcutta Co. Ltd. V. CIT (1959) 37 ITR 1 (SC). d. CIT V. Insilco Ltd. 179 Taxman 5 (Delhi) 18. Thereafter, the Assessing Officer required the assessee to explain the basis of computation of loss which was furnished. Similarly, other details as required by the AO in respect of total salable area, total area actually sold and agreed sales realization in respect of area sold, total unsold ar…

Apeejay Education Trust, Kolkata vs. D.C.I.T.(Exemption), Circle-1, Kolkata

In the result, the appeal of the assessee is allowed

ITA 2075/KOL/2019[2012-13]Status: DisposedITAT Kolkata22 Jul 2021AY 2012-13

Bench: Hon’Ble Shri P. M. Jagtap & Hon’Ble Shri A. T. Varkey, Jm]

Section 10Section 11Section 11(1)(d)

…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. 6. So is the view taken in Calcutta Co. Ltd. v. CIT [1959] 37 ITR 1, 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 into…

The Pr Commissioner of Income Tax vs. Shri.M Abdul Zahid

ITA/100033/2018HC Karnataka19 Jul 2021

Bench: KRISHNA S.DIXIT,PRADEEP SINGH YERUR

Section 260A

…cessarily have to be set off against the 10 receipts from the business as the profits & gains are the surplus by which such receipts exceed the expenditure necessary for the purpose of earning such profits or gains, vide Calcutta Company Ltd. Vs. CIT: 37 ITR 1 (SC); this proposition emerges from a plain reading of Section 37(1) of the Act which has the following text: “37. (1) Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the…

The Pr Commissioner of Income Tax vs. M/S Jay Minerals

ITA/100026/2018HC Karnataka19 Jul 2021

Bench: KRISHNA S.DIXIT,PRADEEP SINGH YERUR

Section 260A

…cessarily have to be set off against the 10 receipts from the business as the profits & gains are the surplus by which such receipts exceed the expenditure necessary for the purpose of earning such profits or gains, vide Calcutta Company Ltd. Vs. CIT: 37 ITR 1 (SC); this proposition emerges from a plain reading of Section 37(1) of the Act which has the following text: “37. (1) Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the…

The Pr Commissioner of Income Tax vs. Shri.M. Abdul Zahid

ITA/100034/2018HC Karnataka19 Jul 2021

Bench: KRISHNA S.DIXIT,PRADEEP SINGH YERUR

Section 260A

…cessarily have to be set off against the 10 receipts from the business as the profits & gains are the surplus by which such receipts exceed the expenditure necessary for the purpose of earning such profits or gains, vide Calcutta Company Ltd. Vs. CIT: 37 ITR 1 (SC); this proposition emerges from a plain reading of Section 37(1) of the Act which has the following text: “37. (1) Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the…

DCIT Circle 15(3)(2), Mumbai vs. M/S Shivaami Clound Services Pvt Ltd., Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

ITA 2599/MUM/2019[2014-15]Status: DisposedITAT Mumbai30 Jun 2021AY 2014-15
For Appellant: Shri Himanshu GandhiFor Respondent: Shri T. S. Khalsa (DR)
Section 143(2)

…ver the time. 2.1.4 The hon’ble Delhi High Court in case of CIT V/s Dinesh Kumar Goel [2011] 331 ITR 10 (Del HC) considered the timing of revenue of recogoilica after considering the Decision of Hon'ble Supreme Court in case of Calcutta Co. Ltd. v. CIT [1959] 37 ITR 1 (SC) and given finding as under :- 11. Section 5 of the Act gives the 'scope of total income'. Sub-se. &a (1) thereof, with which we are concerned, reads as under : "(1) Subject to the provisions of this Act, the total income of any previous raw of a person who is a resident includes all income from whatever source derived which - (a) Is received or…

DCIT(Ltu)-1, Mumbai vs. M/S Cmi Fpe Ltd., Mumbai

ITA 2317/MUM/2019[2013-14]Status: DisposedITAT Mumbai02 Jun 2021AY 2013-14

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahman

For Appellant: Shri Viraj MehtaFor Respondent: Shri Shreekala Pardesi
Section 115JSection 145

…ing time and again that in the absence of any specific provision of law to the contrary, the principles of commercial accounting shall apply. Reference in this regard may also be made with profit to its' celebrated decision in Calcutta Co. Ltd. vs. CIT [1959] 37 ITR 1 (SC). Once, on the basis of the ITA No. 2334/Mum/2013 (A.Y. 2009-10) CMI FPE Limited vs. Asst. CIT- LTU facts and the information on record, the loss is likely to arise, the same has to be provided for under the prudence mandate, which is what AS-7 (also notified by the Central Government) in substance provides under the segment 'Recognition of expe…

M/S. Senior India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal of the assessee is dismissed

ITA 2228/DEL/2017[2012-13]Status: DisposedITAT Delhi16 Apr 2021AY 2012-13
For Appellant: Shri Vishal Kalra, AdvFor Respondent: Shri Prakash Dubey, Sr. D.R
Section 143(3)Section 27i

…8 (Del) of 2017. price then the assessee has to provide such warranty cost in its accounts for the relevant year otherwise matching concept will be violated. The Ld. AR relied upon the decision of the apex court in the case of Calcutta Co. Ltd. Vs. CIT (1959) 37 ITR 1 (SC). The ld. AR further submitted that the assessee company has provided for warranty expenses on the basis of actual claims received from the customers in the past few years and under the matching concept. If revenue is recognized, the cost incurred to earn the revenue including the warranty cost has to be fully provided. The Ld. AR has given comp…

ACIT, Circle- 11(2), New Delhi vs. Humboldt Wedag India Pvt. Ltd., Delhi

The appeals of the revenue are dismissed and the Cross Objections of the assessee are allowed

ITA 4664/DEL/2017[2013-14]Status: DisposedITAT Delhi07 Apr 2021AY 2013-14

Bench: Sh. Kul Bharatdr. B. R. R. Kumar(Through Video Conferencing) Ita No. 4663/Del/2017 : Asstt. Year : 2012-13 Ita No. 4664/Del/2017 : Asstt. Year : 2013-14 Acit, Vs M/S Humboldt Wedag India Pvt. Ltd. Circle-11(2), Mehtab House, A-36, Mohan Co-Op New Delhi Estate, Mathura Road, New Delhi-110044 (Appellant) (Respondent) Pan No. Aaach7474G Co No. 190/Del/2017 : Asstt. Year : 2012-13 Co No. 191/Del/2017 : Asstt. Year : 2013-14 M/S Humboldt Wedag India Pvt. Ltd. Vs Acit, Mehtab House, A-36, Mohan Co-Op Circle-11(2), Estate, Mathura Road, New Delhi New Delhi-110044 (Appellant) (Respondent) Pan No. Aaach7474G Assessee By : Sh. S. K. Aggarwal, Ca Revenue By : Ms. Vanita R. Sharma, Cit Dr Date Of Hearing: 18.03.2021 Date Of Pronouncement: 07.04.2021

For Appellant: Sh. S. K. Aggarwal, CAFor Respondent: Ms. Vanita R. Sharma, CIT DR
Section 28

…edag India Pvt. Ltd. • There should be no prohibition in the Act, express or implied, against the deductibility thereof. 19. In Pondicherry Railway Co Ltd Vs CIT [1931] 5 ITC 363 (PC)/ Badridas Daga Vs CIT [1958] 34 ITR 10 (SC)/ Calcutta Co Ltd Vs CIT [1959] 37 ITR 1 (SC)/ CIT Vs Bai Shirinbai K Kooka [1962] 46 ITR 86 (SC)/ Kamalpat Motilal Vs CIT [1976] 104 ITR 783 (SC) it was held that subject to the special requirements of the Act, the profit to be assessed are the real profits and they must be ascertained on the ordinary principles of commercial trading and commercial accounting. It is thus clear that profit…

ACIT, Circle- 11(2), New Delhi vs. Humboldt Wedag India Pvt. Ltd., Delhi

The appeals of the revenue are dismissed and the Cross Objections of the assessee are allowed

ITA 4663/DEL/2017[2012-13]Status: DisposedITAT Delhi07 Apr 2021AY 2012-13

Bench: Sh. Kul Bharatdr. B. R. R. Kumar(Through Video Conferencing) Ita No. 4663/Del/2017 : Asstt. Year : 2012-13 Ita No. 4664/Del/2017 : Asstt. Year : 2013-14 Acit, Vs M/S Humboldt Wedag India Pvt. Ltd. Circle-11(2), Mehtab House, A-36, Mohan Co-Op New Delhi Estate, Mathura Road, New Delhi-110044 (Appellant) (Respondent) Pan No. Aaach7474G Co No. 190/Del/2017 : Asstt. Year : 2012-13 Co No. 191/Del/2017 : Asstt. Year : 2013-14 M/S Humboldt Wedag India Pvt. Ltd. Vs Acit, Mehtab House, A-36, Mohan Co-Op Circle-11(2), Estate, Mathura Road, New Delhi New Delhi-110044 (Appellant) (Respondent) Pan No. Aaach7474G Assessee By : Sh. S. K. Aggarwal, Ca Revenue By : Ms. Vanita R. Sharma, Cit Dr Date Of Hearing: 18.03.2021 Date Of Pronouncement: 07.04.2021

For Appellant: Sh. S. K. Aggarwal, CAFor Respondent: Ms. Vanita R. Sharma, CIT DR
Section 28

…edag India Pvt. Ltd. • There should be no prohibition in the Act, express or implied, against the deductibility thereof. 19. In Pondicherry Railway Co Ltd Vs CIT [1931] 5 ITC 363 (PC)/ Badridas Daga Vs CIT [1958] 34 ITR 10 (SC)/ Calcutta Co Ltd Vs CIT [1959] 37 ITR 1 (SC)/ CIT Vs Bai Shirinbai K Kooka [1962] 46 ITR 86 (SC)/ Kamalpat Motilal Vs CIT [1976] 104 ITR 783 (SC) it was held that subject to the special requirements of the Act, the profit to be assessed are the real profits and they must be ascertained on the ordinary principles of commercial trading and commercial accounting. It is thus clear that profit…

Deputy Commissioner of Income Tax -5(1), Indore vs. M/S Sunderdeep Constructions Pvt. Ltd., Indore

In the result both the appeals of the revenue vide ITA No

ITA 786/IND/2018[2013-14]Status: DisposedITAT Indore09 Mar 2021AY 2013-14

Bench: Hon’Ble Kul Bharat & Hon’Ble Manish Borad

Section 143(2)Section 143(3)

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON’BLE KUL BHARAT, JUDICIAL MEMBER AND HON’BLE MANISH BORAD, ACCOUNTANT MEMBER ITA No.784 & 786/Ind/2018 Assessment Years 2010-11 & 2013-14 DCIT-5(1), Indore : Revenue V/s M/s Sunderdeep Construction Pvt. Ltd, 35-A, Dindayal Upadhyay Nagar, Indore : Respondent PAN : AAACU2189B Revenue by Shri Lal Chand, CIT Assessee by S/Shri Girish Agrawal, Vijay Bansal & Ms. Nisha Lahoti, ARs Date of Hearing 16.02.2021 Date of Pronouncement 09.03.2021 O R D E R PER MANISH BORAD, A.M The above captioned appeals filed…

Deputy Commissioner of Income Tax -5(1), Indore vs. M/S Sunderdeep Constructions Pvt. Ltd., Indore

In the result both the appeals of the revenue vide ITA No

ITA 784/IND/2018[2010-11]Status: DisposedITAT Indore09 Mar 2021AY 2010-11

Bench: Hon’Ble Kul Bharat & Hon’Ble Manish Borad

Section 143(2)Section 143(3)

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON’BLE KUL BHARAT, JUDICIAL MEMBER AND HON’BLE MANISH BORAD, ACCOUNTANT MEMBER ITA No.784 & 786/Ind/2018 Assessment Years 2010-11 & 2013-14 DCIT-5(1), Indore : Revenue V/s M/s Sunderdeep Construction Pvt. Ltd, 35-A, Dindayal Upadhyay Nagar, Indore : Respondent PAN : AAACU2189B Revenue by Shri Lal Chand, CIT Assessee by S/Shri Girish Agrawal, Vijay Bansal & Ms. Nisha Lahoti, ARs Date of Hearing 16.02.2021 Date of Pronouncement 09.03.2021 O R D E R PER MANISH BORAD, A.M The above captioned appeals filed…

DCIT, Faridabad vs. M/S. Nhpc Ltd., Faridabad

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

ITA 5211/DEL/2016[2013-14]Status: DisposedITAT Delhi17 Feb 2021AY 2013-14

Bench: Sh. Anil Chaturvedi & Sh. Sudhanshu Srivastava(Through Video Conferencing) Assessment Year: 2013-14 Dy. Cit, Vs. M/S. Nhpc Ltd., Circle-Ii, Faridabad. Nhpc Comples, Sector-33, Faridabad. Pan No. Aaacn 0149 C (Appellant) (Respondent) Assessment Year: 2013-14 Sr. Manager(Fin)- Tax, Vs. Acit Nhpc Ltd., Circle – Ii, Nhpc Office Comples, Faridabad 4Th Floor, Finance Division Sector – 33, Faridabad-121003 (Appellant) (Respondent) Appellant By Shri Pramita M. Biswas, Cit-Dr Respondent By Shri Ved Jain, Adv. Shri Ashish Goel, C.A. Date Of Hearing: 08/02/2021 Date Of Pronouncement: 17/02/2021 Order Per Anil Chaturvedi, Am: These Cross Appeals Filed By The Revenue & Assessee Are Directed Against The Order Of The Commissioner Of Income Tax (A)-

Section 115JSection 143(3)Section 14ASection 80

…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. 6. So is the view taken in Calcutta Co. Ltd. v. CIT [1959) 37 ITR 1 : AIR 1959 SC 1165] 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 acc…

Sr. Manager(Fin)--Tax, Nhpc Ltd., Faridabad vs. ACIT, Faridabad

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

ITA 5106/DEL/2016[2013-14]Status: DisposedITAT Delhi17 Feb 2021AY 2013-14

Bench: Sh. Anil Chaturvedi & Sh. Sudhanshu Srivastava(Through Video Conferencing) Assessment Year: 2013-14 Dy. Cit, Vs. M/S. Nhpc Ltd., Circle-Ii, Faridabad. Nhpc Comples, Sector-33, Faridabad. Pan No. Aaacn 0149 C (Appellant) (Respondent) Assessment Year: 2013-14 Sr. Manager(Fin)- Tax, Vs. Acit Nhpc Ltd., Circle – Ii, Nhpc Office Comples, Faridabad 4Th Floor, Finance Division Sector – 33, Faridabad-121003 (Appellant) (Respondent) Appellant By Shri Pramita M. Biswas, Cit-Dr Respondent By Shri Ved Jain, Adv. Shri Ashish Goel, C.A. Date Of Hearing: 08/02/2021 Date Of Pronouncement: 17/02/2021 Order Per Anil Chaturvedi, Am: These Cross Appeals Filed By The Revenue & Assessee Are Directed Against The Order Of The Commissioner Of Income Tax (A)-

Section 115JSection 143(3)Section 14ASection 80

…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. 6. So is the view taken in Calcutta Co. Ltd. v. CIT [1959) 37 ITR 1 : AIR 1959 SC 1165] 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 acc…

Bharat Fritz Werner Ltd vs. The Joint Commissioner of Income-Tax (OSD)

In the result, the appeal is disposed of

ITA/576/2016HC Karnataka04 Dec 2020

Bench: ALOK ARADHE,H.T. NARENDRA PRASAD

Section 260Section 260A

…that the liability had not been estimated with reasonable accuracy? (iii) The tribunal committed an error in holding that the principles enunciated in the decisions of the Hon'ble Supreme Court in Bharat Earth Movers (245 ITR 42) and Calcutta Co. Ltd. (37 ITR 1) were not applicable to the present case? And (iv) The tribunal thus failed to appreciate that the method followed by the appellant as on a scientific basis, besides being fair and reasonable and that therefore the provisioned amount represented an accrued liability which 4 was accordingly allowable as a deduction while computing its incom…

The DCIT, Cochin vs. M/S.Aspinwall & Co. Ltd, Cochin

In the result,the appeal of the Revenue in ITA No

ITA 133/COCH/2017[2012-13]Status: DisposedITAT Cochin19 May 2020AY 2012-13

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

Section 14A

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM&GEORGE GEORGE K., JM ITA Nos. 60 & 61/Coch/2015 Assessment Year: 2006-07 Aspinwall and Company Limited, Vs. The Assistant Commissioner of 926/AI-A5, Total Towers, Income-tax, Circle-1(1), Kochi. Devankulangara, Edapally, Kochi-682 024. [PAN: AACCA 2655G] (Assessee -Appellant) (Revenue-Respondent) Assessment Year: 2012-13 Aspinwall and Company Limited, Vs. The Assistant Commissioner of 926/AI-A5, Total Towers, Income-tax, Circle-1(1), Kochi. Devankulangara, Edapally, Kochi-682 024. [PAN: AACCA 2655G] (Assessee…

M/S Aspinwall & Co., Ltd, Cochin vs. The ACIT, Cochin

In the result,the appeal of the Revenue in ITA No

ITA 128/COCH/2017[2012-13]Status: DisposedITAT Cochin19 May 2020AY 2012-13

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

Section 14A

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM&GEORGE GEORGE K., JM ITA Nos. 60 & 61/Coch/2015 Assessment Year: 2006-07 Aspinwall and Company Limited, Vs. The Assistant Commissioner of 926/AI-A5, Total Towers, Income-tax, Circle-1(1), Kochi. Devankulangara, Edapally, Kochi-682 024. [PAN: AACCA 2655G] (Assessee -Appellant) (Revenue-Respondent) Assessment Year: 2012-13 Aspinwall and Company Limited, Vs. The Assistant Commissioner of 926/AI-A5, Total Towers, Income-tax, Circle-1(1), Kochi. Devankulangara, Edapally, Kochi-682 024. [PAN: AACCA 2655G] (Assessee…

Aspinwall & Company Ltd, Cochin vs. The ACIT, Cochin

In the result,the appeal of the Revenue in ITA No

ITA 61/COCH/2015[2006-07]Status: DisposedITAT Cochin19 May 2020AY 2006-07

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

Section 14A

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM&GEORGE GEORGE K., JM ITA Nos. 60 & 61/Coch/2015 Assessment Year: 2006-07 Aspinwall and Company Limited, Vs. The Assistant Commissioner of 926/AI-A5, Total Towers, Income-tax, Circle-1(1), Kochi. Devankulangara, Edapally, Kochi-682 024. [PAN: AACCA 2655G] (Assessee -Appellant) (Revenue-Respondent) Assessment Year: 2012-13 Aspinwall and Company Limited, Vs. The Assistant Commissioner of 926/AI-A5, Total Towers, Income-tax, Circle-1(1), Kochi. Devankulangara, Edapally, Kochi-682 024. [PAN: AACCA 2655G] (Assessee…

Aspinwall & Company Ltd, Cochin vs. The ACIT, Cochin

In the result,the appeal of the Revenue in ITA No

ITA 60/COCH/2015[2006-07]Status: DisposedITAT Cochin19 May 2020AY 2006-07

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

Section 14A

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM&GEORGE GEORGE K., JM ITA Nos. 60 & 61/Coch/2015 Assessment Year: 2006-07 Aspinwall and Company Limited, Vs. The Assistant Commissioner of 926/AI-A5, Total Towers, Income-tax, Circle-1(1), Kochi. Devankulangara, Edapally, Kochi-682 024. [PAN: AACCA 2655G] (Assessee -Appellant) (Revenue-Respondent) Assessment Year: 2012-13 Aspinwall and Company Limited, Vs. The Assistant Commissioner of 926/AI-A5, Total Towers, Income-tax, Circle-1(1), Kochi. Devankulangara, Edapally, Kochi-682 024. [PAN: AACCA 2655G] (Assessee…

Natvar Parikh & Co. P.Ltd, Mumbai vs. CIT Cen IV, Mumbai

In the result, this ground of appeal is partly allowed

ITA 2082/MUM/2015[2010-11]Status: DisposedITAT Mumbai25 Feb 2020AY 2010-11

Bench: Shri R.C. Sharma & Shri Pawan Singh

For Appellant: Shri Madhur Agarwal (AR)For Respondent: Shri Michael Jerald (DR)
Section 143(2)Section 14ASection 254(1)Section 40Section 40A

…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…