CIT v. B.C. Srinivasa Setty

128 ITR 294Supreme Court of India1981#92 most cited

What is CIT v. B.C. Srinivasa Setty authority for?

When the cost of acquisition of a capital asset cannot be determined, the computation mechanism for capital gains fails, and thus no capital gains can be charged. This establishes a broader principle that a charging section cannot operate in the absence of specific machinery provisions for computation.

628

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2005 to 2026.

Also referred to as

CIT v. B.C. Srinivasa Setty · 128 ITR 294 · Section 45 · Section 48 · Section 55(2) · cost of acquisition · capital gains computation · machinery provision · unascertainable cost · intangible assets · taxability of goodwill · no tax without machinery

Also reported as

5 Taxmann 1

Sections most often in play

Section 143(3)Section 115JBSection 92BSection 234BSection 45Section 55(2)Section 143(2)Section 144

Issues it is cited on

section 211section 55section 32(1)(ii)section 21section 92bsection 32(1)intangible assetssection 48section 45book profitsfair market valuesection 115j

Judgments citing CIT v. B.C. Srinivasa Setty

The Acti, Circle-3(1)(1), Ahmedabad vs. Nirma Limited, Ahmedabad

ITA 1437/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2016-17

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / V/S. Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 115JSection 143(3)Section 14A

…ks, the cost in the hands of the assessee was Nil. Reliance was also placed by the Assessing Officer on the judgments of the Hon'ble Supreme Court in the case of Rustom Cavasjee Cooper v. Union of India (1970) 1 SCC 248 and CIT v. B.C. Srinivasa Shetty (1981) 128 ITR 294 (SC) for the proposition that self-generated goodwill is nebulous in character and cannot be depreciated. The Assessing Officer further distinguished the judgment of the Hon'ble Supreme Court in the case of CIT v. Smifs Securities Ltd. (2012) 348 ITR 302 (SC), holding that although the Apex Court had held goodwill to be an intangible asset, the d…

The Acti, Circle-3(1)(1), Ahmedabad vs. Nirma Limited, Ahmedabad

ITA 1436/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2015-16

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / V/S. Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 115JSection 143(3)Section 14A

…ks, the cost in the hands of the assessee was Nil. Reliance was also placed by the Assessing Officer on the judgments of the Hon'ble Supreme Court in the case of Rustom Cavasjee Cooper v. Union of India (1970) 1 SCC 248 and CIT v. B.C. Srinivasa Shetty (1981) 128 ITR 294 (SC) for the proposition that self-generated goodwill is nebulous in character and cannot be depreciated. The Assessing Officer further distinguished the judgment of the Hon'ble Supreme Court in the case of CIT v. Smifs Securities Ltd. (2012) 348 ITR 302 (SC), holding that although the Apex Court had held goodwill to be an intangible asset, the d…

Nirma Limited, Ahmedabad vs. The Dcti, Circle-3(1)(1), Ahmedabad

ITA 1413/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2016-17

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / V/S. Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 115JSection 143(3)Section 14A

…ks, the cost in the hands of the assessee was Nil. Reliance was also placed by the Assessing Officer on the judgments of the Hon'ble Supreme Court in the case of Rustom Cavasjee Cooper v. Union of India (1970) 1 SCC 248 and CIT v. B.C. Srinivasa Shetty (1981) 128 ITR 294 (SC) for the proposition that self-generated goodwill is nebulous in character and cannot be depreciated. The Assessing Officer further distinguished the judgment of the Hon'ble Supreme Court in the case of CIT v. Smifs Securities Ltd. (2012) 348 ITR 302 (SC), holding that although the Apex Court had held goodwill to be an intangible asset, the d…

Nirma Limited, Ahmedabad vs. The Dcti, Circle-3(1)(1), Ahmedabad

ITA 1412/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2015-16

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner बनाम / Of Income Tax, V/S. Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / Nirma House, V/S. Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 115JSection 143(3)Section 14ASection 80I

…ks, the cost in the hands of the assessee was Nil. Reliance was also placed by the Assessing Officer on the judgments of the Hon'ble Supreme Court in the case of Rustom Cavasjee Cooper v. Union of India (1970) 1 SCC 248 and CIT v. B.C. Srinivasa Shetty (1981) 128 ITR 294 (SC) for the proposition that self-generated goodwill is nebulous in character and cannot be depreciated. The Assessing Officer further distinguished the judgment of the Hon'ble Supreme Court in the case of CIT v. Smifs Securities Ltd. (2012) 348 ITR 302 (SC), holding that although the Apex Court had held goodwill to be an intangible asset, the d…

Mondelez India Foods Pvt. Ltd. (Formerly Known As Cadbury India Ltd.), Mumbai vs. ACIT, Range 5 (1)(2), Mumbai

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

ITA 7269/MUM/2019[2015-16]Status: DisposedITAT Mumbai22 Aug 2025AY 2015-16

Bench: Shri Amit Shukla & Shri Arun Khodpiaआयकर अपील सं. / Ita No.7269/Mum/2019 निर्धारण वर्ष / Assessment Year :2015-16 M/S Mondelez India Foods Private Limited (Formerly Known As Cadbury India Limited), Mondelez House, Unit No.2001, 20Th Floor Tower-3 (Wing C) India Bulls Finance Centre), Parel, Mumbai-400 013 Pan : Aaac0460H ........अपीलार्थी / Appellant बनाम / V/S. The Assistant Commissioner Of Income-Tax, Range-5(1)(2), Mumbai, Aayakar Bhavan, M.K. Road Mumbai-400 020 ......प्रत्यर्थी / Respondent Assessee By : Shri J.D. Mistri, Sr. Advocate Shri Hiten Chande Revenue By : Shri Pankaj Kumar, Cit-Dr सुनवाई की तारीख / Date Of Hearing :18.08.2025 घोषणा की तारीख / Date Of Pronouncement : 22.08.2025

For Appellant: Shri J.D. Mistri, Sr. AdvocateFor Respondent: Shri Pankaj Kumar, CIT-DR
Section 115JSection 143(3)Section 144C(1)Section 144C(5)Section 14ASection 234C

…sary checks againstarbitrariness while at the same time addressing theapprehension of tax avoidance. 64. In the absence of any machinery provision, bringing an internationaltransaction to tax is not possible. The decisions in CIT v. B.C. Srinivasa Setty(1981) 128 ITR 294 (SC) and PNB Finance Ltd. V. CIT (2008) 307 ITR 16 (SC) make this position explicit. Therefore,where the existence of an international transaction involving AMP expenses, with certain price uplifted to be applied to transaction between persons other than AEs in uncontrolledconditions", Since the reference is to 'price' and to 'uncontrolled condit…

JCIT(OSD) I/C. of DCIT -1(3)(1), Mumbai vs. Zt Systems India Private Limited, Mumbai

In the result, appeal of the revenue is dismissed as per our aforesaid observations

ITA 1729/MUM/2025[2016-17]Status: DisposedITAT Mumbai19 Aug 2025AY 2016-17

Bench: Shri Amit Shukla & Shri Arun Khodpiaआयकर अपील सं. / Ita No.1729/Mum/2025 "नधा"रण वष" / Assessment Year :2016-17 The Jt. Commissioner Of Income Tax (Osd), I/C. Dcit-1(3)(1), Mumbai (M.H.)

For Appellant: Shri Ajit JainFor Respondent: Shri Aditya Rai, Sr. DR
Section 115Section 115ASection 143(3)Section 2(22)(a)Section 201Section 206C(7)Section 92C

…d that the machinery Section of the Mt cannot be road de-hors charging Section. The Act has to be read as an integrated who. On the aforesaid submission also. there can be 110 dispute However, as observed by the Supreme Court in CIT v/s. B.C. Srinivasa Shetti 128 ITR 294, ''there is a qualitative difference between the charging provisions and computation provisions and ordinarily the operation of the charging provisions cannot be affected by the construction of computation provisions " In the present case, there is no charging provision to tax capital account transaction in respect of issue of shares at a premium…

Deputy Commissioner of Income Tax Circle 3(1)(1), Ahmedabad vs. Reckitt Benckiser Healthcare India Private Limited, Haryana

ITA 1248/AHD/2025[2022-23]Status: DisposedITAT Ahmedabad16 Jul 2025AY 2022-23

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokar

For Appellant: Shri Rignesh Das, CIT-DR
Section 250Section 40Section 80Section 80I

…own self-generated goodwill, which is not permissible in law. He relied on AS-26, which clearly states: “Internally generated goodwill should not be recognized as an asset.” 5.9 He also referred to the Supreme Court decision in CIT v. B.C. Srinivasa Setty (128 ITR 294), where it was held that cost of self-generated ITA No.1245/Ahd/2025 and 3 Others DCIT Vs. Reckitt Benckiser Healthcare India P. Ltd. 9 goodwill is not ascertainable and hence cannot be subjected to capital gains tax — the same rationale applies for depreciation. 5.10 The AO distinguished the assessee’s case from the Supreme Court’s ruling in…

Deputy Commissioner of Income Tax Circle 3(1)(1), Ahmedabad vs. Reckitt Benckiser Healthcare India Private Limited, Haryana

ITA 1247/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad16 Jul 2025AY 2020-21

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokar

For Appellant: Shri Rignesh Das, CIT-DR
Section 250Section 40Section 80Section 80I

…own self-generated goodwill, which is not permissible in law. He relied on AS-26, which clearly states: “Internally generated goodwill should not be recognized as an asset.” 5.9 He also referred to the Supreme Court decision in CIT v. B.C. Srinivasa Setty (128 ITR 294), where it was held that cost of self-generated ITA No.1245/Ahd/2025 and 3 Others DCIT Vs. Reckitt Benckiser Healthcare India P. Ltd. 9 goodwill is not ascertainable and hence cannot be subjected to capital gains tax — the same rationale applies for depreciation. 5.10 The AO distinguished the assessee’s case from the Supreme Court’s ruling in…

Deputy Commissioner of Income Tax Circle 3(1)(1), Ahmedabad vs. Reckitt Benckiser Healthcare India Private Limited, Haryana

ITA 1246/AHD/2025[2013-14]Status: DisposedITAT Ahmedabad16 Jul 2025AY 2013-14

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokar

For Appellant: Shri Rignesh Das, CIT-DR
Section 250Section 40Section 80Section 80I

…own self-generated goodwill, which is not permissible in law. He relied on AS-26, which clearly states: “Internally generated goodwill should not be recognized as an asset.” 5.9 He also referred to the Supreme Court decision in CIT v. B.C. Srinivasa Setty (128 ITR 294), where it was held that cost of self-generated ITA No.1245/Ahd/2025 and 3 Others DCIT Vs. Reckitt Benckiser Healthcare India P. Ltd. 9 goodwill is not ascertainable and hence cannot be subjected to capital gains tax — the same rationale applies for depreciation. 5.10 The AO distinguished the assessee’s case from the Supreme Court’s ruling in…

Deputy Commissioner of Income Tax Circle 3(1)(1) Ahmedabad, Ahmedabad vs. Reckitt Benckiser Healthcare India Private Limited, Gurgaon

ITA 1245/AHD/2025[2012-13]Status: DisposedITAT Ahmedabad16 Jul 2025AY 2012-13

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokar

For Appellant: Shri Rignesh Das, CIT-DR
Section 250Section 40Section 80Section 80I

…own self-generated goodwill, which is not permissible in law. He relied on AS-26, which clearly states: “Internally generated goodwill should not be recognized as an asset.” 5.9 He also referred to the Supreme Court decision in CIT v. B.C. Srinivasa Setty (128 ITR 294), where it was held that cost of self-generated ITA No.1245/Ahd/2025 and 3 Others DCIT Vs. Reckitt Benckiser Healthcare India P. Ltd. 9 goodwill is not ascertainable and hence cannot be subjected to capital gains tax — the same rationale applies for depreciation. 5.10 The AO distinguished the assessee’s case from the Supreme Court’s ruling in…

Jt. Cti (OSD), Circle-3(1)(1), Ahmedabad vs. M/S. Nirma Limited, Ahmedabad

In the result, all the appeals filed by the Revenue and the appeals for AYs 2012-

ITA 791/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad30 Jun 2025AY 2014-15

Bench: Dr. B.R.R. Kumar, Vice- & Ms. Suchitra R. Kamble

For Appellant: Shri S.N. Soparkar, Sr.AdvocateFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 143(3)Section 2(24)(x)Section 234BSection 271

…he ability of the concern to earn profit over a course of years or in excess of normal amounts because of its reputation, location and other features. The A.O has also relied on the judgment of Hon’ble Supreme Court in the case of CIT vs B.C. Srinivasa Shetty 128 ITR 294. It is a matter of fact that SCL was a sick company and had approached BIFR for its rehabilitation. According to the A.O., considering these facts it is difficult to assume that SCL was having any goodwill or reputation as such. According to the A.O the appellant is trying to develop a so called goodwill by creating an accounting facade. In fact…

Nirma Limited, Ahmedabad vs. DCIT, Circle-3(1)(1), Ahmedabad

In the result, all the appeals filed by the Revenue and the appeals for AYs 2012-

ITA 516/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad30 Jun 2025AY 2014-15

Bench: Dr. B.R.R. Kumar, Vice- & Ms. Suchitra R. Kamble

For Appellant: Shri S.N. Soparkar, Sr.AdvocateFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 143(3)Section 2(24)(x)Section 234BSection 271

…he ability of the concern to earn profit over a course of years or in excess of normal amounts because of its reputation, location and other features. The A.O has also relied on the judgment of Hon’ble Supreme Court in the case of CIT vs B.C. Srinivasa Shetty 128 ITR 294. It is a matter of fact that SCL was a sick company and had approached BIFR for its rehabilitation. According to the A.O., considering these facts it is difficult to assume that SCL was having any goodwill or reputation as such. According to the A.O the appellant is trying to develop a so called goodwill by creating an accounting facade. In fact…

The DCIT, Cir-3(1)(1), Ahmedabad vs. M/S. Nirma Limited, Ahmedabad

In the result, all the appeals filed by the Revenue and the appeals for AYs 2012-

ITA 2224/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad30 Jun 2025AY 2013-14

Bench: Dr. B.R.R. Kumar, Vice- & Ms. Suchitra R. Kamble

For Appellant: Shri S.N. Soparkar, Sr.AdvocateFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 143(3)Section 2(24)(x)Section 234BSection 271

…he ability of the concern to earn profit over a course of years or in excess of normal amounts because of its reputation, location and other features. The A.O has also relied on the judgment of Hon’ble Supreme Court in the case of CIT vs B.C. Srinivasa Shetty 128 ITR 294. It is a matter of fact that SCL was a sick company and had approached BIFR for its rehabilitation. According to the A.O., considering these facts it is difficult to assume that SCL was having any goodwill or reputation as such. According to the A.O the appellant is trying to develop a so called goodwill by creating an accounting facade. In fact…

M/S. Nirma Limited, Ahmedabad vs. The DCIT, Circle-3(1)(1), Ahmedabad

In the result, all the appeals filed by the Revenue and the appeals for AYs 2012-

ITA 2008/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad30 Jun 2025AY 2013-14

Bench: Dr. B.R.R. Kumar, Vice- & Ms. Suchitra R. Kamble

For Appellant: Shri S.N. Soparkar, Sr.AdvocateFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 143(3)Section 2(24)(x)Section 234BSection 271

…he ability of the concern to earn profit over a course of years or in excess of normal amounts because of its reputation, location and other features. The A.O has also relied on the judgment of Hon’ble Supreme Court in the case of CIT vs B.C. Srinivasa Shetty 128 ITR 294. It is a matter of fact that SCL was a sick company and had approached BIFR for its rehabilitation. According to the A.O., considering these facts it is difficult to assume that SCL was having any goodwill or reputation as such. According to the A.O the appellant is trying to develop a so called goodwill by creating an accounting facade. In fact…

M/S. Nirma Limited, Ahmedabad vs. The DCIT, Circle-3(1)(1), Ahmedabad

In the result, all the appeals filed by the Revenue and the appeals for AYs 2012-

ITA 2007/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad30 Jun 2025AY 2012-13

Bench: Dr. B.R.R. Kumar, Vice- & Ms. Suchitra R. Kamble

For Appellant: Shri S.N. Soparkar, Sr.AdvocateFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 143(3)Section 2(24)(x)Section 234BSection 271

…he ability of the concern to earn profit over a course of years or in excess of normal amounts because of its reputation, location and other features. The A.O has also relied on the judgment of Hon'ble Supreme Court in the case of CIT vs B.C. Srinivasa Shetty 128 ITR 294. It is a matter of fact that SCL was a sick company and had approached BIFR for its rehabilitation. According to the A.O., considering these facts it is difficult to assume that SCL was having any goodwill or reputation as such. According to the A.O the appellant is trying to develop a so called goodwill by creating an accounting facade. In fact…

Ajay Jaisinghani, Mumbai vs. Deputy Commissioner of Income Tax Central Circle -5(2), Mumbai

In the result, the appeal filed by the assessee is hereby allowed for statistical purpose

ITA 972/MUM/2025[2020-21]Status: DisposedITAT Mumbai19 Jun 2025AY 2020-21

Bench: SHRI. NARENDRA KUMAR BILLAIYA (Accountant Member), MS. KAVITHA RAJAGOPAL (Judicial Member)

For Appellant: Shri Rajan Vora, Shri Pranay GandhiFor Respondent: DR. K. R. Subhash (CIT-DR)
Section 143(1)Section 234ASection 250Section 55(2)(aa)Section 55(2)(ac)

…t. 6 Ajay Jaisinghani 12. Subsequent to the intimation u/s. 143(1) of the Act, the assessee filed an additional legal claim before the ld. AO dated 30.07.2021, by relying on the decision of the Hon'ble Apex Court in the case of B. C. Srinivasa Shetty [(1981) 128 ITR 294] which held that capital gains are not liable to tax in case of OFS for the following reasons: • “As per Explanation to section 55(2)(ac) of the Act, to compute the FMV, the shares should be listed on a recognized stock exchange on the date of transfer. However, in case of OFS, the shares have been transferred to an escrow account well before the…

Tata Cummins Private Limited, Pune vs. The DCIT Circle-1-Jamshedpur and the Assessment Unit, Income-Tax Department, NFAC, Delhi, Jamshedpur

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 430/RAN/2024[2021-22]Status: DisposedITAT Ranchi12 Jun 2025AY 2021-22

Bench: Shri George Mathan & Shri Ratnesh Nandan Sahaytata Cummins Private Limited, D.C.I.T., Cummins India Office, Tower-A, 7Th Circle-1, Vs. Floor, Survey No. 21, Balewadi, Pune, Jamshedpur. Maharashtra. Pan No. Aaact 6353 L Appellant/ Assessee Respondent/ Revenue

…viii. Honda Siel Power Products Ltd. (2015) 64 taxmann.com 328 (Delhi) "Additionally it was held both in MSIL (supra) as well as Whir/pool of India Limited (supra) that in terms of the law explained by the Supreme Court in CIT v. 8. C. Srinivas Setty (1981) 128 ITR 294 (SC) - and PNB Finance Limited v. CIT (2008) 307 ITR 75 (SC), in the absence of any machinery provision, bringing an imagined international transaction to tax is fraught with the danger of invalidation. In the present case, in the absence of there being on international transaction involving AMP spend with on ascertainable price, even if such pri…

Ucweb Mobile Private Limited, Gurgaon vs. Assessment Unit, Inocome Tax Department, Gurgaon

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

ITA 3945/DEL/2024[2020-21]Status: DisposedITAT Delhi30 May 2025AY 2020-21

Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANISH AGARWAL (Accountant Member)

Section 143(2)Section 143(3)Section 144CSection 144C(1)Section 144C(13)Section 144C(5)Section 253(1)(d)Section 43(3)

…s a clear statutory scheme encapsulating the legislative policy and mandate which provides the necessary checks against arbitrariness while at the same time addressing the apprehension of tax avoidance." 45. The decisions in CIT v. B.C. Srinivasa Setty (1981) 128 ITR 294 (SC) and PNB Finance Ltd. v. CIT (2008) 307 ITR 75 (SC) make it explicit that in the absence of any machinery provision, bringing an imagined transaction to tax is not possible. Here, therefore, where the existence of an international transaction involving AMP expense with an ascertainable price is unable to be shown to exist, even if such price…

Isc Speciality Chemicals LLP, Mumbai vs. ITO Ward 19(1)(5), Mumbai

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

ITA 457/MUM/2025[2018-19]Status: DisposedITAT Mumbai28 May 2025AY 2018-19

Bench: Smt. Beena Pillai () & Shri Girish Agrawal ()

Section 45Section 47Section 47A(4)Section 48Section 50BSection 56

…ks (supra), has observed that the said two sections viz. Sec. 45 and Sec. 48 are to be read together, as the charging section and the computation section constitute one package. Also, the Hon'ble Supreme Court in the case of CIT v. B.C. Srinivasa Setty [1981] 128 ITR 294/5 Taxman 1 and Navin Jindal v. Asstt. CIT [2010] 320 ITR 708/187 Taxman 283 (SC) had observed that for the purposes of Sec. 48 of the Act, one must keep in mind an important principle, namely, that chargeability and computation has to go hand in hand. In other words, computation is an integral part of chargeability under the Act. Now, under Sec.…

ITO, TDS, Ranchi vs. M/S. Chhinamastika Cement & Ispat Pvt. Ltd., Ramgarh

In the result, the grounds of appeal raised by the revenue are dismissed

ITA 18/RAN/2022[16-17]Status: DisposedITAT Ranchi27 May 2025

Bench: Shri George Mathan & Shri Ratnesh Nandan Sahay

Section 133Section 133A

…imination could not be helped. In fact such lacunae in laws abound. We have, therefore, to interpret the law as it is and not to add to or subtract therefrom. Following the ratio of the Supreme Court decision in the case of CIT v. B. C. Srinivasa Setty 119811 128 ITR 294, it is held that where the computation provisions which constitute an integral ITO Vs M/s Maa Chhinamastika Cement & Ispat (P) Ltd. code with the charging section, fail, interest is not chargeable under section 201(1A) of the Act. The decision of the Tribunal in the case of Ess Kay Construction Co. (supra) also supports the case of the assessee.…