Chowringhee Sales Bureau (P.) Ltd. v. CIT

Addl CIT 8(2), Mumbai vs. Mumbai International Airport P. Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ashwani Tanejaassessment Year: 2008-09

…sessee for its own use. It was lastly argued that all the authorities including AO, CIT(A), CBDT and MOCA grossly erred by relying upon the judgement of Hon’ble Supreme Court in the case of Chowringhee Sales Bureau vs 34 M/s. Mumbai International Airport CIT 87 ITR 542 (SC) to hold the impugned amount as taxable receipt in the hands of the recipient. He submitted detailed analysis carving out the distinction between facts of aforesaid judgement and facts of assessee’s case. He emphasised that reliance on the said judgement is out of context and misplaced. 14.4. Per contra, the Ld. CIT-DR submitted that after det…

Mumbai International Airport P. Ltd, Mumbai vs. Addl CIT RG 8(2), Mumbai

Bench: Shri Mahavir Singh & Shri Ashwani Tanejaassessment Year: 2008-09

…sessee for its own use. It was lastly argued that all the authorities including AO, CIT(A), CBDT and MOCA grossly erred by relying upon the judgement of Hon’ble Supreme Court in the case of Chowringhee Sales Bureau vs 34 M/s. Mumbai International Airport CIT 87 ITR 542 (SC) to hold the impugned amount as taxable receipt in the hands of the recipient. He submitted detailed analysis carving out the distinction between facts of aforesaid judgement and facts of assessee’s case. He emphasised that reliance on the said judgement is out of context and misplaced. 14.4. Per contra, the Ld. CIT-DR submitted that after det…

Meridien Sa, Mumbai vs. ADIT Cir 4(1), Mumbai

In the result, both the appeals of the assessee company are partly allowed

Bench: Shri G.S.Pannu & Shri Ravish Sood

…s. 1,71,13,377/-(supra), the Ld. CIT(A) relying on the following case laws: (i). DDIT(Intl). Vs. Technichip Offshore Contracting Br. (Appeal No. ITA 4613/D/07; dated. 16/01/2009)(ITAT Delhi-I, Bench) (ii). Chowringhee Sales Bureau (P) Ltd. Vs. CIT (1973)87 ITR 542 (SC) , being of the view that as the gross royalty income of the assessee company 6 ITA No.6578 /MUM/2012,(A.Y. 2008-09) ITA No.6605 /MUM/2012,(A.Y. 200910 was to be subjected to tax as per the rate provided in the India-France treaty, therefore upheld the order of the A.O. 3. That before us the assessee company has assailed the order of the…

Meridien Sa, Mumbai vs. DDIT (It)Cir 4(1), Mumbai

In the result, both the appeals of the assessee company are partly allowed

Bench: Shri G.S.Pannu & Shri Ravish Sood

…s. 1,71,13,377/-(supra), the Ld. CIT(A) relying on the following case laws: (i). DDIT(Intl). Vs. Technichip Offshore Contracting Br. (Appeal No. ITA 4613/D/07; dated. 16/01/2009)(ITAT Delhi-I, Bench) (ii). Chowringhee Sales Bureau (P) Ltd. Vs. CIT (1973)87 ITR 542 (SC) , being of the view that as the gross royalty income of the assessee company 6 ITA No.6578 /MUM/2012,(A.Y. 2008-09) ITA No.6605 /MUM/2012,(A.Y. 200910 was to be subjected to tax as per the rate provided in the India-France treaty, therefore upheld the order of the A.O. 3. That before us the assessee company has assailed the order of the…

Korn Ferry International P.Ltd, Mumbai vs. ACIT (OSD) Cir 3(2), Mumbai

Bench: Shri Amit Shukla () & Shri Ashwani Taneja (Acountant Member)

…of the transaction and whether it has actually resulted in profit or loss to the assessee. The reliance is placed on the following decisions: (i) Kedarnath Jute Mfg. Co. Ltd. Vs CIT (1971) 82 ITR 363 (SC) (ii) Chowringhee Sales Bureau Pvt. Ltd. Vs CIT (1973) 87 ITR 542 (SC) (iii) Satluj Cotton Mills vs CIT (1979) 116 ITR 01 (SC) In the present case, the appellant has not incurred any actual expenditure which accrued to it during F.Y.2009-10 relevant to A.Y.2010-11. The expenditure will be ascertained at the end of the expiry of ESOP scheme time period if the then surviving employees may actually exercise the ri…

DCIT 3(2)(2), Mumbai vs. Korn Ferry International P.Ltd, Mumbai

Bench: Shri Amit Shukla () & Shri Ashwani Taneja (Acountant Member)

…of the transaction and whether it has actually resulted in profit or loss to the assessee. The reliance is placed on the following decisions: (i) Kedarnath Jute Mfg. Co. Ltd. Vs CIT (1971) 82 ITR 363 (SC) (ii) Chowringhee Sales Bureau Pvt. Ltd. Vs CIT (1973) 87 ITR 542 (SC) (iii) Satluj Cotton Mills vs CIT (1979) 116 ITR 01 (SC) In the present case, the appellant has not incurred any actual expenditure which accrued to it during F.Y.2009-10 relevant to A.Y.2010-11. The expenditure will be ascertained at the end of the expiry of ESOP scheme time period if the then surviving employees may actually exercise the ri…

Kadam Menon Color Craft, Mumbai vs. ACIT 18(2), Mumbai

In the result the appeal filed by the assessee is partly allowed

Bench: Shri B.R. Baskaran (Am)

…ase of India Carbon Ltd, referred supra. On the contrary the Learned DR submitted that the Sales tax receipts are considered as “trading receipts” as per the decisions rendered by Honourable Supreme Court in the case of Chowringhe Sales bureau private limited 87 ITR 542 and Sinclair Murray & Co 97 ITR 615. Accordingly he submitted that the Sales tax collected by the assessee is liable to be assessed under section 43B of the Act, if it has not been paid within the due date prescribed in section 43B of the Act. The Ld D.R submitted that the legal position shall remain the same, even if the assessee has not debited…

DCIT 3(2), Mumbai vs. Lml Ltd, Mumbai

In the result, appeal of the revenue stands dismissed

Bench: Shri G S Pannu & Shri Amit Shukla

…trading or business. Further, disclosure as unsecured loan cannot be the decisive factor for treating it as capital or revenue receipt. Relying upon the decision of Hon’ble Supreme Court in the case of Chowringhee Sales Bureau P Ltd v CIT, reported in [1973] 87 ITR 542, he submitted that true nature and quality of receipts is to be looked into and not under which head it has entered in the book of accounts. 17. We have heard the rival submissions and perused the relevant finding given in the impugned orders. The assessee had undertaken expansion-cum-diversification of its scooter business and for that purpose f…

The ACIT RG-3(2) vs. M/S. Lml Ltd

In the result, appeal of the revenue stands dismissed

Bench: Shri G S Pannu & Shri Amit Shukla

…trading or business. Further, disclosure as unsecured loan cannot be the decisive factor for treating it as capital or revenue receipt. Relying upon the decision of Hon’ble Supreme Court in the case of Chowringhee Sales Bureau P Ltd v CIT, reported in [1973] 87 ITR 542, he submitted that true nature and quality of receipts is to be looked into and not under which head it has entered in the book of accounts. 17. We have heard the rival submissions and perused the relevant finding given in the impugned orders. The assessee had undertaken expansion-cum-diversification of its scooter business and for that purpose f…