Chief CIT v. Kesaria Tea Company Limited

254 ITR 434Supreme Court of India2002#1925 most cited

What is Chief CIT v. Kesaria Tea Company Limited authority for?

For Section 41(1) of the Income Tax Act to apply, the mere expiry of the limitation period does not constitute cessation of liability; there must be an explicit act by the creditor, such as a release or admission of write-off, confirming that the liability has ceased without the possibility of revival.

59

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2025.

Also referred to as

Chief CIT v. Kesaria Tea Company Limited · Section 41(1) cessation of liability · remission of trading liability · waiver of loan · limitation period expiry · creditor write-off · liability ceased · Sugauli Sugar Mills

Sections most often in play

Section 142(1)Section 41(1)Section 68Section 69CSection 133(6)Section 133ASection 143(2)Section 143(3)
Read the full judgment

Issues it is cited on

section 41(1)(a)waiver of loansection 43(6)(c)section 43(b)section 43(6)section 43(1)section 40a(7)section 155section 41(1)section 41section 28(iv)written down value

Judgments citing Chief CIT v. Kesaria Tea Company Limited

ACIT, Ghaziabad vs. M/S. Supreme Ceramics Ltd., Ghaziabad

In the result, the appeal of the Revenue is dismissed, whereas the appeal of the assessee is partly allowed

ITA 6078/DEL/2012[2009-10]Status: DisposedITAT Delhi22 Feb 2022AY 2009-10

Bench: Shri N.K. Billaiya & Shri Amit Shukla

For Appellant: Shri Rakesh Gupta, AdvocateFor Respondent: Shri Umesh Takyar, Senior DR
Section 143(3)

…that if the outstanding balance in the name of sundry creditors for more than 4 years has not been written back in the profit & loss account, the same cannot be taxed u/s 41(1) of the Act. Hon’ble Supreme Court in case of CCIT vs. Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) has laid down that resort to section 41(1) could arise only if the liability of the assessee has said to have ceased finally without having possibility of reviving it, which is not the case here. Accordingly, the order of the ld. CIT (A) deleting the said addition is upheld and the ground raised by the Revenue is dismissed. 27. Insofar as a…

Supreme Ceramics Ltd., Ghaziabad vs. ACIT, Ghaziabad

In the result, the appeal of the Revenue is dismissed, whereas the appeal of the assessee is partly allowed

ITA 5595/DEL/2012[2009-10]Status: DisposedITAT Delhi22 Feb 2022AY 2009-10

Bench: Shri N.K. Billaiya & Shri Amit Shukla

For Appellant: Shri Rakesh Gupta, AdvocateFor Respondent: Shri Umesh Takyar, Senior DR
Section 143(3)

…that if the outstanding balance in the name of sundry creditors for more than 4 years has not been written back in the profit & loss account, the same cannot be taxed u/s 41(1) of the Act. Hon’ble Supreme Court in case of CCIT vs. Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) has laid down that resort to section 41(1) could arise only if the liability of the assessee has said to have ceased finally without having possibility of reviving it, which is not the case here. Accordingly, the order of the ld. CIT (A) deleting the said addition is upheld and the ground raised by the Revenue is dismissed. 27. Insofar as a…

ITO 19(1)(1), Mumbai vs. Shri. Amit Virendra Patel, Mumbai

In the result, appeal of the revenue is dismissed

ITA 1134/MUM/2020[2015-16]Status: DisposedITAT Mumbai30 Nov 2021AY 2015-16
Section 133(6)Section 143(3)Section 41(1)

…n together with the ledger account of all the remaining creditors. The assessee also placed reliance on the decision of the Hon’ble Apex Court in the case of CIT vs. Sugauli Sugar Works Pvt. Ltd, reported 236 ITR 518, CIT vs. Kesaria Tea Co. Ltd., reported in 254 ITR 434, among other decisions. The ld. CIT(A) gave a categorical finding in his order stating that the assessee had not written back to income the sundry creditors payable in its books, hence, the liability payable to these sundry creditors had not ceased to exist. The ld. CIT(A) also observed that from the ledger account of the sundry creditors produce…

M/S I G Petrochemicals Ltd vs. The Asst Commissioner of Income Tax

In the result, the appeal fails and is hereby dismissed

ITA/219/2011HC Karnataka04 Aug 2021

Bench: ALOK ARADHE,HEMANT CHANDANGOUDAR

Section 260Section 263

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF AUGUST 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR.JUSTICE HEMANT CHANDANGOUDAR I.T.A. NO.219 OF 2011 BETWEEN: M/S. I.G. PETROCHEMICALS LTD, D-4, JYOTHI COMPLEX 134/1, INFANTRY ROAD BANGALORE-560001 REPRESENTED BY ITS CHAIRMAN SRI. MADAN MOHAN DHANUKA AGED ABOUT 63 YEARS S/O SRI. HANUMAN PRASAD DHANUKA. ... APPELLANT (BY SMT.JINITHA CHATTERJEE, LEARNED COUNSEL FOR SRI. S. PARTHASARATHI, ADV.) AND: THE ASST. COMMISSIONER OF INCOME TAX CIRCLE-11(4), BANGALORE-560001.…

The Commissioner of Income Tax vs. M/S. Karnataka Power Transmission Corpn. Ltd

In the result, we do not find any merit in this

ITA/91/2015HC Karnataka26 Jul 2021

Bench: ALOK ARADHE,HEMANT CHANDANGOUDAR

Section 143(2)Section 148Section 260Section 260ASection 41(1)

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF JULY 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE HEMANT CHANDANGOUDAR I.T.A. NO.91 OF 2015 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX JSS TOWERS, BSK III STAGE BANGALORE-560085. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX JSS TOWERS, BSK III STAGE BANGALORE-560085. ... APPELLANTS (BY SRI. K.V. ARAVIND, ADV.,) AND: M/S. KARNATAKA POWER TRANSMISSION CORPN. LTD., 7TH FLOOR, KAVERI BHAVAN KEMPEGOWDA ROAD BANGALORE PAN:AABCK7281 ... RESPONDENT (BY SRI. CHYTHANYA K.K. ADV.) - - - THIS…

The Dy. Commissioner of Income Tax, Circle-1(1)(2), Surat vs. M/S. J.K. Paper Ltd., Surat

In the result this ground of appeal is dismissed

ITA 365/SRT/2017[2014-15]Status: DisposedITAT Surat29 Apr 2021AY 2014-15

Bench: Shri Pawan Singh, Hon'Ble & Dr. Arjun Lal Saini, Hon'Ble(Virtual Hearing) आ.अ.सं./I.T.A No.365/Srt/2017 िनधा"रण वष"/Assessment Year: 2014-15 The Deputy Commissioner Of Vs. M/S J. K. Paper Ltd., Income Tax, Circle-1(1)(2), P.O. Central Pulp Mills, Surat. Fort Songadh – 394660. Dist. Tapi, Gujarat. [Pan: Aaact 6305 N] अपीलाथ" / Appellant ""थ"/Respondent

Section 115JSection 14ASection 41(1)

…mount to remission or cessation of liability for the purpose of invoking Section 41(1). As per the judgment of Hon'ble Apex Court rendered in the case of Sugauli Sugar Works as reported in 236 ITR 518 (S.C.) and in the case of Kesaria Tea Co. Ltd. reported in 254 ITR 434 (S.C.), even a unilateral entry passed by the assessee by writing back the liability will not amount to cessation of liability. However, after the amendment of Section 41(1) by way of insertion of Explanation to this extent, these two judgments of Hon'ble Apex Court will not be applicable where the assessee has written back the liability but wher…

Sri Tum Nath Shaw, Burdwan vs. I.T.O., Ward-2(3), Burdwan

In the result, the appeal of the assessee is partly allowed

ITA 2625/KOL/2019[2005-06]Status: DisposedITAT Kolkata08 Feb 2021AY 2005-06

Bench: Shri A. T. Varkey, Jm]

Section 40A(3)

…cash or other benefit in respect of such creditors or there has been cessation/remission of liabilities during the relevant respect year so as to justify addition under section 41(1) of the Act. Further, in the case of CCIT -vs.- Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) the Hon'ble Apex Court held as follows: "In order to apply section 41(1) in the context of the facts of the present case, the following points are to be kept in view (1) in the course of the assessment for an earlier year, allowance or deduction has been made in respect of trading liability incurred by 6 | P a g e Shri Tum Nath Shaw A.Y. 200…

The DCIT, Circle-1, Junagadh vs. M/S Keshodwala Foods., Veraval

In the result, the appeal of the Revenue is dismissed

ITA 1133/RJT/2010[2007-08]Status: DisposedITAT Rajkot28 Feb 2020AY 2007-08

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./I.T.A. No.1133/Rjt/2010 ("नधा"रण वष" / Assessment Year :2007-08) D.C.I.T, बनाम/ M/S Keshodwala Foods, Circle-1, 305-G.I.D.C. Industrial Vs. Junagadh. Estate, Somnath Road, Veraval. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadfk6651Q (अपीलाथ" /Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से / Appellant By : Shri Ranjit Singh Cit. D.R ""यथ" क" ओर से/Respondent By : Shri D.M. Rindani, A.R सुनवाई क" तार"ख / Date Of Hearing 24/02/2020 घोषणा क" तार"ख /Date Of Pronouncement 28/02/2020 आदेश / O R D E R Per Bench: The Captioned Appeal Has Been Filed At The Instance Of The Revenue Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-Iv, Rajkot [Ld. Cit(A) In Short] Dated 16/06/2010, Arising In The Matter Of Assessment Order Passed Under S. 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As "The Act") Dated 08/12/2009 Relevant To Assessment Years (A.Y.) 2007- 08. A.Y. 2007-08 The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Shri Ranjit Singh CIT. D.RFor Respondent: Shri D.M. Rindani, A.R
Section 131Section 143(3)Section 194CSection 197

…ght to claim over the same as per law, AO could not make addition on account of cessation of liability by invoking provision of section 41(1) of the Act. This issue has been settled by the Hon'ble Apex Court in the case of CCIT Vs. Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC), wherein it is held that provision made towards purchase tax liability was allowed in earlier years and such provision was written back in a subsequent year under the impression that the dispute as to purchase tax liability was finally settled with the dismissal of the special leave petition in some other case, even though other issues beari…

Shri Farsuram Ratilal Bhamwala, Bharuch vs. The Income Tax Officer, Ward-1, Bharuch

In the result, the appeal of the assessee is allowed

ITA 1935/AHD/2014[2009-10]Status: DisposedITAT Surat14 Feb 2020AY 2009-10

Bench: The Ld. Cit(A) & Ld. Cit(A) After Considering The Case Of Both The Parties Dismissed The Appeal Filed By The Assessee.

For Appellant: Shri Rasesh Shah, A.RFor Respondent: Ms. Anupma Singla, Sr. D.R
Section 234BSection 274Section 41(1)

…liability arises when it ceases to P a g e | 4 Shri Farsuram Ratilal Bhamwala in ITA No.1935/Ahd/2014 exist in the eyes of law for all purposes. We draw strength from the decision of J.K. Synthetics Ltd. vs. ITO 105 ITR 864, CCIT vs. Kesari Tea Company Ltd. 254 ITR 434 (SC) and CIT Vs. Abdul Adhal 247 ITR 710. Since as far as the facts of the present case, the assessee has still shown the creditors as payable, therefore, there is no cessation of liability. In this context, we rely upon the following decisions:- “a. Eicher Mother Ltd. v. Dy. CIT 82 TTJ 61(Ind) Subsisting liability-Since the amounts were payable…

Dharamtar Motors Services Petroleum Product, Ahmedabad vs. The ITO, Ward-6(1)(4), Ahmedabad

In the results, both the appeals of the assessee are allowed

ITA 1438/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad21 Nov 2019AY 2012-13

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedआयकर अपील सं./Ita Nos. 1438 & 2534/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 M/S Dharamtar Motor Services Income Tax Officer, Petroleum Product, Vs. Ward 6(1)(4) C/O. Ketan H. Shah, Advocate 903, Ahmedabad. Sapphire Complex, C.G. Road, Navrangpura, Ahmedabad. Pan: Aabfd9182F

For Respondent: Shri L.P. Jain, Sr. D.R
Section 271(1)(c)Section 68

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’C’’ BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER And SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos. 1438 & 2534/AHD/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 M/s Dharamtar Motor Services Income Tax Officer, Petroleum Product, Vs. Ward 6(1)(4) C/o. Ketan H. Shah, Advocate 903, Ahmedabad. Sapphire Complex, C.G. Road, Navrangpura, Ahmedabad. PAN: AABFD9182F (Applicant) (Respondent) : Assessee by Shri Ketan Shah, A.R Revenue by : Shri L.P. Jain, Sr. D.R सुनवाई क" तार"ख/Date of Hearing : 22/10/2019 घोषणा क" तार"ख /…

Amar Kant Agarwal, Kolkata vs. ITO, Ward - 43(1), Kolkata

Appeal is allowed

ITA 1887/KOL/2018[2013-14]Status: DisposedITAT Kolkata15 May 2019AY 2013-14

Bench: Shri S.S, Godaraassessment Year:2013-14 Amar Kant Agarwal Income Tax Officer, बनाम / Prop: Ruchira Chemical Ward-43(1), 3, Govt. V/S. Corportion, 9, Ram Sevak Place (West), Mullick Lane, Kolkata-001 Kolkata-700007 [Pan No.Acypa 7815 P] .. अपीलाथ" /Appellant ""यथ" /Respondent Shri Miraj D Shah, Advocate अपीलाथ" क" ओर से/By Appellant Shri C.J. Shah, Jcit-Sr-Dr ""यथ" क" ओर से/By Respondent 05-03-2019 सुनवाई क" तार"ख/Date Of Hearing 15-05-2019 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R This Assessee’S Appeal For Assessment Year 2013-14, Arises Against The Commissioner Of Income-Tax (Appeals)-13, Kolkata’S Order Dated 24.07.2017 Passed In Case No.312/Cit(A)-13/Kol/2014-15, Involving Proceedings U/S. 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. Heard Both The Parties. Case File Perused. 2. The Sole Substantive Dispute That Arose For My Apt Adjudication In The Instant Appeal Is Of Correctness Of Sec.41(1) Cessational Liability Addition Of ₹5 Lac In Respect Of Assessee’S Alleged Sundry Creditors M/S R.K. Trading Co. U/S 41(1) Of The Act. The Cit(A)’S Detailed Discussion Confirming The Impugned Addition Reads As Under:- “4. Decision:- I Have Gone Through The Contention Of The Assessee, The Order Passed By The Ao & The Submissions Made By The Appellant. The Decision Of This Appeal Is Given As Under:- Continued To Show The Amounts As Liability In His Balance Sheet. There Is No Cessation Of Liability. Hon. Madras High Court In Cit V. Tamilnadu Warehousing Corporation (2007) 292 Itr 310 Had Held - ‘The Assessee Had Continued To Show The Admitted Amount Of Rs.8/22/925J- As Liability In The Balance Sheet. The Undisputed Fact Was That It Was A Liability Reflected In The Balance Sheet. Once It Was Shown As Liability By The Assessee, The

Section 143(3)Section 41(1)

…ion of the liability during the previous year relevant to the assessment year under consideration. The deletion of addition was justified' The Supreme Court of India had dealt with the cessation of trading liability in Chief CIT v. Kesaria Tea Co. Ltd. (2002) 254 ITR 434, wherein provision made by the assessee towards purchase tax liability (allowed in the earlier years was written back assessee in the year under consideration. The Apex Court held the unilateral act on the part of the assessee by writing off the liability in the accounts did not necessarily mean that the liability ceased in the eye of law.” 4.2.2…

ACIT, Circle -11(2), Kolkata vs. M/S Senco Gold Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 349/KOL/2017[2011-12]Status: DisposedITAT Kolkata03 May 2019AY 2011-12

Bench: Sh. J.Sudhakar Reddy & Sh.S.S.Viswanethra Ravi

…ssation/ remission until it is so decided by the business entity or if the AO has any evidence to support his addition. The Case Laws are as below: 1.) CIT VS. Sri Vardhmaan Overseas Limited ITA No- 774/2009 (Delhi-HC) 2.) CCIT Vs. Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) 3.) CIT Vs. Sugauli Sugar Works Pvt Ltd. (1999) 2361TR 518 (SC) 5.3. I have considered the submissions of the AR of the appellant in juxtaposition with the assessment order. I find that the appellant receives advances on various promotional schemes like Swarna Yojna Scheme where customers make advance payments in installments. It was explain…

ACIT, Central Circle - 4(1), Kolkata vs. M/S. Senco Gold Limited, Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 2490/KOL/2017[2012-13]Status: DisposedITAT Kolkata03 May 2019AY 2012-13

Bench: Sh. J.Sudhakar Reddy & Sh.S.S.Viswanethra Ravi

…ssation/ remission until it is so decided by the business entity or if the AO has any evidence to support his addition. The Case Laws are as below: 1.) CIT VS. Sri Vardhmaan Overseas Limited ITA No- 774/2009 (Delhi-HC) 2.) CCIT Vs. Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) 3.) CIT Vs. Sugauli Sugar Works Pvt Ltd. (1999) 2361TR 518 (SC) 5.3. I have considered the submissions of the AR of the appellant in juxtaposition with the assessment order. I find that the appellant receives advances on various promotional schemes like Swarna Yojna Scheme where customers make advance payments in installments. It was explain…

Tum Nath Shaw, Burdwan vs. ACIT, Circle - 2, Burdwan

In the result, the appeal filed by the assessee for assessment year 2000-01 to 2004-05 are allowed

ITA 2047/KOL/2017[2004-05]Status: DisposedITAT Kolkata31 Dec 2018AY 2004-05

Bench: Shri A.T. Varkey, Jm & Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.2043 To 2047/Kol/2017 (िनधा"रणवष" / Assessment Years : 2000-01 To 2004-05 Tum Nath Shaw Vs. Acit, Circle-2, Burdwan, Kamala Kaminitala Lane, Nutanganj, Aayakar Bhawan, Court Burdwan-713102 Compound, Burdwan- 713101. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Ajgps 2913 P (अपीलाथ"/Assessee) (""थ" / Respondent) ..

For Appellant: Shri Saumitra Choudhary, AdvFor Respondent: Robin Choudhury, Addl. CIT Sr. DR
Section 143(3)Section 144Section 147Section 148Section 40A(3)

…n respect of such creditors or there has been cessation/remission of liabilities during the relevant respect year so as to justify addition under section 41(1) of the Act. A.Ys.2000-01 to 2004-05 Further, in the case of CCIT -vs.- Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) the Hon'ble Apex Court held as follows: "In order to apply section 41(1) in the context of the facts of the present case, the following points are to be kept in view (1) in the course of the assessment for an earlier year, allowance or deduction has been made in respect of trading liability incurred by the assessee; (2) Subsequently, a benef…

Tum Nath Shaw, Burdwan vs. ACIT, Circle - 2, Burdwan

In the result, the appeal filed by the assessee for assessment year 2000-01 to 2004-05 are allowed

ITA 2046/KOL/2017[2003-04]Status: DisposedITAT Kolkata31 Dec 2018AY 2003-04

Bench: Shri A.T. Varkey, Jm & Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.2043 To 2047/Kol/2017 (िनधा"रणवष" / Assessment Years : 2000-01 To 2004-05 Tum Nath Shaw Vs. Acit, Circle-2, Burdwan, Kamala Kaminitala Lane, Nutanganj, Aayakar Bhawan, Court Burdwan-713102 Compound, Burdwan- 713101. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Ajgps 2913 P (अपीलाथ"/Assessee) (""थ" / Respondent) ..

For Appellant: Shri Saumitra Choudhary, AdvFor Respondent: Robin Choudhury, Addl. CIT Sr. DR
Section 143(3)Section 144Section 147Section 148Section 40A(3)

…n respect of such creditors or there has been cessation/remission of liabilities during the relevant respect year so as to justify addition under section 41(1) of the Act. A.Ys.2000-01 to 2004-05 Further, in the case of CCIT -vs.- Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) the Hon'ble Apex Court held as follows: "In order to apply section 41(1) in the context of the facts of the present case, the following points are to be kept in view (1) in the course of the assessment for an earlier year, allowance or deduction has been made in respect of trading liability incurred by the assessee; (2) Subsequently, a benef…

Tum Nath Shaw, Burdwan vs. ACIT, Circle - 2, Burdwan

In the result, the appeal filed by the assessee for assessment year 2000-01 to 2004-05 are allowed

ITA 2045/KOL/2017[2002-03]Status: DisposedITAT Kolkata31 Dec 2018AY 2002-03

Bench: Shri A.T. Varkey, Jm & Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.2043 To 2047/Kol/2017 (िनधा"रणवष" / Assessment Years : 2000-01 To 2004-05 Tum Nath Shaw Vs. Acit, Circle-2, Burdwan, Kamala Kaminitala Lane, Nutanganj, Aayakar Bhawan, Court Burdwan-713102 Compound, Burdwan- 713101. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Ajgps 2913 P (अपीलाथ"/Assessee) (""थ" / Respondent) ..

For Appellant: Shri Saumitra Choudhary, AdvFor Respondent: Robin Choudhury, Addl. CIT Sr. DR
Section 143(3)Section 144Section 147Section 148Section 40A(3)

…n respect of such creditors or there has been cessation/remission of liabilities during the relevant respect year so as to justify addition under section 41(1) of the Act. A.Ys.2000-01 to 2004-05 Further, in the case of CCIT -vs.- Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) the Hon'ble Apex Court held as follows: "In order to apply section 41(1) in the context of the facts of the present case, the following points are to be kept in view (1) in the course of the assessment for an earlier year, allowance or deduction has been made in respect of trading liability incurred by the assessee; (2) Subsequently, a benef…

Tum Nath Shaw, Burdwan vs. ACIT, Circle - 2, Burdwan

In the result, the appeal filed by the assessee for assessment year 2000-01 to 2004-05 are allowed

ITA 2044/KOL/2017[2001-02]Status: DisposedITAT Kolkata31 Dec 2018AY 2001-02

Bench: Shri A.T. Varkey, Jm & Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.2043 To 2047/Kol/2017 (िनधा"रणवष" / Assessment Years : 2000-01 To 2004-05 Tum Nath Shaw Vs. Acit, Circle-2, Burdwan, Kamala Kaminitala Lane, Nutanganj, Aayakar Bhawan, Court Burdwan-713102 Compound, Burdwan- 713101. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Ajgps 2913 P (अपीलाथ"/Assessee) (""थ" / Respondent) ..

For Appellant: Shri Saumitra Choudhary, AdvFor Respondent: Robin Choudhury, Addl. CIT Sr. DR
Section 143(3)Section 144Section 147Section 148Section 40A(3)

…n respect of such creditors or there has been cessation/remission of liabilities during the relevant respect year so as to justify addition under section 41(1) of the Act. A.Ys.2000-01 to 2004-05 Further, in the case of CCIT -vs.- Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) the Hon'ble Apex Court held as follows: "In order to apply section 41(1) in the context of the facts of the present case, the following points are to be kept in view (1) in the course of the assessment for an earlier year, allowance or deduction has been made in respect of trading liability incurred by the assessee; (2) Subsequently, a benef…

Tum Nath Shaw, Burdwan vs. ACIT, Circle - 2, Burdwan

In the result, the appeal filed by the assessee for assessment year 2000-01 to 2004-05 are allowed

ITA 2043/KOL/2017[2000-01]Status: DisposedITAT Kolkata31 Dec 2018AY 2000-01

Bench: Shri A.T. Varkey, Jm & Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.2043 To 2047/Kol/2017 (िनधा"रणवष" / Assessment Years : 2000-01 To 2004-05 Tum Nath Shaw Vs. Acit, Circle-2, Burdwan, Kamala Kaminitala Lane, Nutanganj, Aayakar Bhawan, Court Burdwan-713102 Compound, Burdwan- 713101. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Ajgps 2913 P (अपीलाथ"/Assessee) (""थ" / Respondent) ..

For Appellant: Shri Saumitra Choudhary, AdvFor Respondent: Robin Choudhury, Addl. CIT Sr. DR
Section 143(3)Section 144Section 147Section 148Section 40A(3)

…n respect of such creditors or there has been cessation/remission of liabilities during the relevant respect year so as to justify addition under section 41(1) of the Act. A.Ys.2000-01 to 2004-05 Further, in the case of CCIT -vs.- Kesaria Tea Co. Ltd. (2002) 254 ITR 434 (SC) the Hon'ble Apex Court held as follows: "In order to apply section 41(1) in the context of the facts of the present case, the following points are to be kept in view (1) in the course of the assessment for an earlier year, allowance or deduction has been made in respect of trading liability incurred by the assessee; (2) Subsequently, a benef…

Flo Dyne Controls (India) P.Ltd, Mumbai vs. ACIT 10(3), Mumbai

In the result, appeal of the assessee is partly allowed as indicated above

ITA 983/MUM/2016[2011-12]Status: DisposedITAT Mumbai15 Jun 2018AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri N.K. Pradhan, Hon'Blem/S. Flo Dyne Controls (India) Pvt. Ltd., V. Income Tax Officer – 10(3)(1) C/O. Jayesh Sangharjka & Co Llp Charted {Now Known As Income Tax Accountants Officer 15(1)(2)} Unit No. 405, Hind Rajasthan Centre, Aayakar Bhavan, M.K. Road, D.S. Phalke Road, Dadar (E) Mumbai-400 020 Mumbai – 400 014

For Appellant: Shri Ritika AgarwalFor Respondent: Ms. Pooja Swaroop
Section 40Section 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “F”, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI N.K. PRADHAN, HON'BLE ACCOUNTANT MEMBER M/s. Flo Dyne Controls (India) Pvt. Ltd., v. Income Tax Officer – 10(3)(1) C/o. Jayesh Sangharjka & Co LLP Charted {Now known as Income Tax Accountants Officer 15(1)(2)} Unit No. 405, Hind Rajasthan Centre, Aayakar Bhavan, M.K. Road, D.S. Phalke Road, Dadar (E) Mumbai-400 020 Mumbai – 400 014 PAN NO: AABCF 2339 M (Appellant) (Respondent) Assessee by : Shri Ritika Agarwal Department by : Ms. Pooja Swaroop Date of Hearing : 04.04.2018 Date of Pronouncemen…

Beejay Associates Contract P. Ltd, Pune vs. ITO 6(1)(3), Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 936/MUM/2016[2012-13]Status: DisposedITAT Mumbai13 Jun 2018AY 2012-13

Bench: Shri Pawan Singh & Rajesh Kumarbeejay Associates Contract P. Ltd. Ito -6(1)(3), Tej House, 5Th Floor, Aayakar Bhavan, M.K. 5-Mahatma Gandhi Road, Vs. Road, Mumbai-20. Pune, Maharashtra-411011. Pan: Aaacb5077F Appellant Respondent Appellant By : Shri M. Subramanian (Ar) Respondent By : Shri Suman Kumar (Dr) Date Of Hearing : 29.05.2018 Date Of Pronouncement : 13.06.2018 Orderunder Section 254(1)Of Income Tax Act Per Pawan Singh;

For Appellant: Shri M. Subramanian (AR)For Respondent: Shri Suman Kumar (DR)
Section 143(3)Section 254(1)Section 41(1)

…y of sundry creditor was increased. Some of the bills were received in the subsequent/next year which resulted in higher expenses and sundry creditors. In support of his submission, the ld. AR relied upon the decision of CCIT versus Kasaria Tea Company Ltd. [254 ITR 434 (SC) ], CIT vs ITA No. 936 Mum 16-Beejay Associates Contract P. Ltd. Sugauli Sugar Works (P.) Ltd. [236 ITR 518 (SC)] and CIT vs Tamilnadu Tourism Development Corporation [288 ITR 146 (Mad)]. On the other hand, the ld. DR for the Revenue supported the orders of authorities below. 11. We have considered the rival submission of the parties an…