Chowranghee Sales Bureau Ltd. v. CIT

110 ITR 385High Court1977#4595 most cited

What is Chowranghee Sales Bureau Ltd. v. CIT authority for?

Sales tax is considered part of the trading receipt, and its non-payment can attract the provisions of Section 43B. The liability to pay sales tax arises at the moment of sale or purchase.

25

judgments rely on this decision, according to BharatTax’s citation analysis of 366,418 Indian tax judgments — from 2007 to 2023.

Also referred to as

Chowranghee Sales Bureau Ltd. v. CIT · 110 ITR 385 · sales tax · trading receipt · section 43B · liability to pay sales tax · mercantile system of accounting · profits and gains of business or profession

Issues it is cited on

section 11bsection 43b(a)section 73section 28(iv)enhanced compensationsection 145asection 17mercantile system of accountingprofits and gains of business or professionsection 43bsection 145section 32

Judgments citing Chowranghee Sales Bureau Ltd. v. CIT

DCIT 10(3), Mumbai vs. Toscano Infrastructure P.Ltd, Thane

Appeal stands allowed for statistical purposes

ITA 6849/MUM/2014[2010-11]Status: DisposedITAT Mumbai02 May 2017AY 2010-11

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. Nos. 6577 & 6578/Mum/2014 (िनधा"रण वष" / Assessment Years: 2009-10 & 2010-11) Toscano Infrastructure Deputy Commissioner Of Private Limited Income Tax 10(3) Ground Floor, Ashar I.T. Room No. 451 बनाम/ Park Road No. 16Z Aaykar Bhawan Vs. Wagle Industrial Estate M.K.Road Near Agricultural Bus Stop Mumbai -400 020 Thane(W) – 400 604 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacct-7263-P (अपीलाथ" /Appellant) (""थ" / Respondent) : & आयकर अपील सं./I.T.A. Nos. 6849 & 6850/Mum/2014 (िनधा"रण वष" / Assessment Years: 2009-10 & 2010-11) Deputy Commissioner Of Toscano Infrastructure Income Tax 10(3) Private Limited Room No. 451 Ground Floor, Ashar I.T. बनाम/ Aaykar Bhawan Park Road No. 16Z Vs. M.K.Road Wagle Industrial Estate Mumbai -400 020 Near Agricultural Bus Stop Thane(W) – 400 604 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacct-7263-P (अपीलाथ" /Appellant) (""थ" / Respondent) :

For Appellant: Dr. K.Shivram & Shri RahulFor Respondent: Dr. A.K.Nayak, Ld. DR
Section 133ASection 143(3)Section 143(3)(iii)Section 147

…he judgment of Hon’ble Delhi High Court in CIT Vs. Noble & Hewitt (I)(P) Ltd. [2008 305 ITR 324] & Chennai Tribunal in ACIT Vs. Real Image Media Technologies P. Ltd. [2008 114 ITD 573] coupled with apex court judgment in Chowringhee Sales Bureau P. Ltd. [1977 110 ITR 385] held that the rigor of Section 43B could not be applied in case no service tax was payable by the assessee as per relevant service tax rules. Further, Hon’ble Jurisdictional Bombay High court in CIT Vs. Ovira Logistics Private Limited [ITA No. 1023 of 2013 17/04/2015] dealing with the same issue has made similar observations:- “9] Having perused…

Toscano Infrastructure P.Ltd, Thane vs. DCIT 10-(3), Mumbai

Appeal stands allowed for statistical purposes

ITA 6578/MUM/2014[2010-11]Status: DisposedITAT Mumbai02 May 2017AY 2010-11

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. Nos. 6577 & 6578/Mum/2014 (िनधा"रण वष" / Assessment Years: 2009-10 & 2010-11) Toscano Infrastructure Deputy Commissioner Of Private Limited Income Tax 10(3) Ground Floor, Ashar I.T. Room No. 451 बनाम/ Park Road No. 16Z Aaykar Bhawan Vs. Wagle Industrial Estate M.K.Road Near Agricultural Bus Stop Mumbai -400 020 Thane(W) – 400 604 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacct-7263-P (अपीलाथ" /Appellant) (""थ" / Respondent) : & आयकर अपील सं./I.T.A. Nos. 6849 & 6850/Mum/2014 (िनधा"रण वष" / Assessment Years: 2009-10 & 2010-11) Deputy Commissioner Of Toscano Infrastructure Income Tax 10(3) Private Limited Room No. 451 Ground Floor, Ashar I.T. बनाम/ Aaykar Bhawan Park Road No. 16Z Vs. M.K.Road Wagle Industrial Estate Mumbai -400 020 Near Agricultural Bus Stop Thane(W) – 400 604 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacct-7263-P (अपीलाथ" /Appellant) (""थ" / Respondent) :

For Appellant: Dr. K.Shivram & Shri RahulFor Respondent: Dr. A.K.Nayak, Ld. DR
Section 133ASection 143(3)Section 143(3)(iii)Section 147

…he judgment of Hon’ble Delhi High Court in CIT Vs. Noble & Hewitt (I)(P) Ltd. [2008 305 ITR 324] & Chennai Tribunal in ACIT Vs. Real Image Media Technologies P. Ltd. [2008 114 ITD 573] coupled with apex court judgment in Chowringhee Sales Bureau P. Ltd. [1977 110 ITR 385] held that the rigor of Section 43B could not be applied in case no service tax was payable by the assessee as per relevant service tax rules. Further, Hon’ble Jurisdictional Bombay High court in CIT Vs. Ovira Logistics Private Limited [ITA No. 1023 of 2013 17/04/2015] dealing with the same issue has made similar observations:- “9] Having perused…

Toscano Infrastructure P.Ltd, Thane vs. DCIT 10-(3), Mumbai

Appeal stands allowed for statistical purposes

ITA 6577/MUM/2014[2009-10]Status: DisposedITAT Mumbai02 May 2017AY 2009-10

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. Nos. 6577 & 6578/Mum/2014 (िनधा"रण वष" / Assessment Years: 2009-10 & 2010-11) Toscano Infrastructure Deputy Commissioner Of Private Limited Income Tax 10(3) Ground Floor, Ashar I.T. Room No. 451 बनाम/ Park Road No. 16Z Aaykar Bhawan Vs. Wagle Industrial Estate M.K.Road Near Agricultural Bus Stop Mumbai -400 020 Thane(W) – 400 604 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacct-7263-P (अपीलाथ" /Appellant) (""थ" / Respondent) : & आयकर अपील सं./I.T.A. Nos. 6849 & 6850/Mum/2014 (िनधा"रण वष" / Assessment Years: 2009-10 & 2010-11) Deputy Commissioner Of Toscano Infrastructure Income Tax 10(3) Private Limited Room No. 451 Ground Floor, Ashar I.T. बनाम/ Aaykar Bhawan Park Road No. 16Z Vs. M.K.Road Wagle Industrial Estate Mumbai -400 020 Near Agricultural Bus Stop Thane(W) – 400 604 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacct-7263-P (अपीलाथ" /Appellant) (""थ" / Respondent) :

For Appellant: Dr. K.Shivram & Shri RahulFor Respondent: Dr. A.K.Nayak, Ld. DR
Section 133ASection 143(3)Section 143(3)(iii)Section 147

…he judgment of Hon’ble Delhi High Court in CIT Vs. Noble & Hewitt (I)(P) Ltd. [2008 305 ITR 324] & Chennai Tribunal in ACIT Vs. Real Image Media Technologies P. Ltd. [2008 114 ITD 573] coupled with apex court judgment in Chowringhee Sales Bureau P. Ltd. [1977 110 ITR 385] held that the rigor of Section 43B could not be applied in case no service tax was payable by the assessee as per relevant service tax rules. Further, Hon’ble Jurisdictional Bombay High court in CIT Vs. Ovira Logistics Private Limited [ITA No. 1023 of 2013 17/04/2015] dealing with the same issue has made similar observations:- “9] Having perused…

Rajendra Kumar Sancheti, Jaipur vs. ITO, Jaipur

In the result, the appeal of the assessee is allowed

ITA 284/JPR/2016[2010-11]Status: DisposedITAT Jaipur07 Feb 2017AY 2010-11

Bench: Filing Income Tax Return Or Within Grace Period

For Appellant: Shri Vijay Goyal , CAFor Respondent: Smt. Poonam Rai, DCIT- DR
Section 36(1)Section 36(1)(va)Section 43B

…mounts specified u/s.43B without making actual payment. The following were the relevant observations of the Court in this regard: "5. Learned counsel for the Revenue urges that the decision of the Calcutta High Court in Chowringhee Sales Bureau P. Ltd. [1977] 110 ITR 385, covers the point in its favour. We are unable to agree. In that case, it was held that the liability to pay sales tax arose the moment a sale or purchase was effected and if an assessee was maintaining accounts on the mercantile system it would be entitled to deduction of the estimated liability of sales tax, even though such sales tax had not b…

Commissioner of Income Tax vs. Noble & Hewitt (I) Pvt Ltd

The appeal is dismissed

ITA - 839 / 2007HC Delhi10 Sept 2007
Section 28Section 43Section 43B

…ve had to be debited to Profit & Loss Account and thereafter the Assessee could claim a deduction thereon. The Commissioner relied upon decision of the Calcutta High Court in Chowringhee Sales Bureau P. Ltd. v. Commissioner of Income Tax, West Bengal-I (1977) 110 ITR 385. In appeal, the Tribunal was of the opinion that in view of the provisions of Section 43 B of the Income Tax Act, 1961('Act'), since the Assessee had not claimed a deduction there was no question of disallowing the deduction which was not even claimed. The relevant extract of Section 43 B of the Act reads as follows: "43B. ![](_page_2_Picture_…