What is CIT v. Dhanrajgirji Raja Narasingirji authority for?

The revenue cannot question the commercial expediency or wisdom of an expenditure incurred by a businessman, as the businessman is the best judge of their own business interests. The department's role is limited to verifying if the expenditure was genuinely incurred and was wholly and exclusively for business purposes.

How many judgments cite CIT v. Dhanrajgirji Raja Narasingirji?

154 judgments on BharatTax cite CIT v. Dhanrajgirji Raja Narasingirji (91 ITR 544), spanning 2009 to 2026.

Which sections of the Income Tax Act does CIT v. Dhanrajgirji Raja Narasingirji come up under?

It is most often cited in judgments turning on Section 37(1), Section 143(3), Section 1961, Section 195, Section 40A(2)(b), Section 68.

CIT v. Dhanrajgirji Raja Narasingirji (91 ITR 544)

The Assistant Commr. of Income Tax, Gandhidham Circle, Gandhinagar vs. M/S Kutch Salt & Allied Industries Ltd., Gandhidham

In the result, cross objections filed by the assessee are allowed for statistical purposes

ITA 233/RJT/2016[2009-10]Status: DisposedITAT Rajkot17 Mar 2025AY 2009-10

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhait (Ss)A No.233& 234 & 235 & 236 /Rjt/2016 Assessment Year: (2009-10 To 2012-13) (Hybrid Hearing) Asstt. Commissioner Of Income Tax, Vs. M/S. Kutch Salt & Allied Gandhidham Circle, Industries Ltd., Gandhidham - Kutch Maitri Bhavan, Plot No.-18, Sector-8, Gandhidham - Kutch "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaact1769L (Appellant) (Respondent)

For Appellant: Shri K. C. Thacker, Ld. A.RFor Respondent: Shri Sanjay Punglia,Ld.CIT (DR)

Section 36(1)(iii)

…ng benefited from the services rendered and also it is he who knows to what extent the benefit ensures to him. Reliance in this regard may be placed on the decision of the Hon'ble Supreme Court in the case of CIT vs. Dhanrajgiri Raja Narasingirji, reported in 91 ITR 544 (SC), wherein it was held that "it is not open to the department to prescribe what expenditure an assessee should incur and in what circumstances he should incur the expenditure. 29. We find that assessee pleaded before the assessing that advances are out of interest- free funds available with the assessee and filed copy of accounts of parties and…

Kandla Export Corporation, Gandhidham vs. The Dy. Commr. of Income Tax, Cen. Cir.-2(3), Ahmedabad

In the result, the summaries and concise ground No

ITA 155/RJT/2016[2012-13]Status: DisposedITAT Rajkot28 Feb 2025AY 2012-13

Bench: Dr. Arjun Lal Saini, Am.& Dinesh Mohan Sinha, Jm आयकरअपीलसं./It(Ss)A No.135/Ahd/2016 ("नधा"रणवष" / Assessment Year: (2011-12) (Hybrid Hearing) The Deputy Commissioner Of Vs. Kandla Exports Corporation Income – Tax, Central Circle – 2(3), Plot No. 18, Maitri Bhavan, 3Rd Floor, A – 305, Aayakar Bhavan, Sector – 8, Gandhidham, Ahmedabad – 370201 Kutch- 370201 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfk1906F (Assessee) (Respondent) आयकरअपीलसं./It(Ss)A No.136/Ahd/2016 ("नधा"रणवष" / Assessment Year: (2012-13) (Hybrid Hearing) The Deputy Commissioner Of Kandla Exports Corporation Vs Income – Tax, Central Circle – Plot No. 18, Maitri Bhavan, . 2(3), 3Rd Floor, A – 305, Aayakar Sector – 8, Gandhidham, Bhavan, Ahmedabad - 370201 Kutch- 370201 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfk1906F (Assessee) (Respondent)

…ng benefited from the services rendered and also it is he who knows to what extent the benefit ensures to him. Reliance in this regard may be placed on the decision of the Hon'ble Supreme Court in the case of CIT vs. Dhanrajgiri Raja Narasingirji, reported in 91 ITR 544 (SC), wherein it was held that "it is not open to the department to prescribe what expenditure an IT(SS)A No.135, 136, 177, 178/Ahd/2016 Assessment Year.2011-12, 2012-13 Kandla Exports Corporation assessee should incur and in what circumstances he should incur the expenditure. 29. We find that assessee pleaded before the assessing that advances…

DCIT, Central Circle 2, Rajkot vs. Aditya Birla Global Trading (India) Pvt. Ltd. (Swiss Singapore India Pvt. Ltd., Gandhidham

In the result, appeal filed by the assessee, in ITA No

ITA 353/RJT/2024[2017-18]Status: DisposedITAT Rajkot13 Feb 2025AY 2017-18

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

Section 143(3)Section 195Section 37(1)Section 40

…ng benefited from the services rendered and also it is he who knows to what extent the benefit ensures to him. Reliance in this regard may be placed on the decision of the Hon'ble Supreme Court in the case of CIT vs. Dhanrajgiri Raja Narasingirji, reported in 91 ITR 544 (SC), wherein it was held that "it is not open to the department to prescribe what expenditure an assessee should incur and in what circumstances he should incur the expenditure. Every businessman knows his interest best. 51. Further, the Hon'ble Supreme Court in the decision rendered in the case of Eastern Investments Limited vs. CIT reported in…

Deputy Commissioner of Income Tax, Central Circle 2, Rajkot vs. Aditya Birla Global Trading(India) Pvt.Ltd. (Swiss Singapore India Pvt. Ltd.), Gandhidham

In the result, appeal filed by the assessee, in ITA No

ITA 284/RJT/2024[2016-17]Status: DisposedITAT Rajkot13 Feb 2025AY 2016-17

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

Section 143(3)Section 195Section 37(1)Section 40

…ng benefited from the services rendered and also it is he who knows to what extent the benefit ensures to him. Reliance in this regard may be placed on the decision of the Hon'ble Supreme Court in the case of CIT vs. Dhanrajgiri Raja Narasingirji, reported in 91 ITR 544 (SC), wherein it was held that "it is not open to the department to prescribe what expenditure an assessee should incur and in what circumstances he should incur the expenditure. Every businessman knows his interest best. 51. Further, the Hon'ble Supreme Court in the decision rendered in the case of Eastern Investments Limited vs. CIT reported in…

Aditya Birla Global Trading (India) Private Limited, Gujarat vs. DCIT-ACIT Cent-2 RKT, Rajkot

In the result, appeal filed by the assessee, in ITA No

ITA 226/RJT/2024[2018-2019]Status: DisposedITAT Rajkot13 Feb 2025AY 2018-2019

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

Section 143(3)Section 195Section 37(1)Section 40

…ng benefited from the services rendered and also it is he who knows to what extent the benefit ensures to him. Reliance in this regard may be placed on the decision of the Hon'ble Supreme Court in the case of CIT vs. Dhanrajgiri Raja Narasingirji, reported in 91 ITR 544 (SC), wherein it was held that "it is not open to the department to prescribe what expenditure an assessee should incur and in what circumstances he should incur the expenditure. Every businessman knows his interest best. 51. Further, the Hon'ble Supreme Court in the decision rendered in the case of Eastern Investments Limited vs. CIT reported in…

Aditya Birla Global Trading (India) Private Limited, Gujarat vs. Assistant Commissioner of Income Tax, Circle 1, Gandhihdam, Gandhidham, Gujarat

In the result, appeal filed by the assessee, in ITA No

ITA 225/RJT/2024[2015-2016]Status: DisposedITAT Rajkot13 Feb 2025AY 2015-2016

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

Section 143(3)Section 195Section 37(1)Section 40

…ng benefited from the services rendered and also it is he who knows to what extent the benefit ensures to him. Reliance in this regard may be placed on the decision of the Hon'ble Supreme Court in the case of CIT vs. Dhanrajgiri Raja Narasingirji, reported in 91 ITR 544 (SC), wherein it was held that "it is not open to the department to prescribe what expenditure an assessee should incur and in what circumstances he should incur the expenditure. Every businessman knows his interest best. 51. Further, the Hon'ble Supreme Court in the decision rendered in the case of Eastern Investments Limited vs. CIT reported in…

Ketan Harilal Mehta HUF by Its Karta Ketan H Mehta, Mumbai vs. ITO Ward-33(2)(2) Mumbai Presently Juridiction With ITO 42(1)(1) Mumbai, Mumbai

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

ITA 770/MUM/2023[2014-15]Status: DisposedITAT Mumbai03 Jun 2024AY 2014-15

Bench: Shri B R Baskaran & Shri Pavan Kumar Gadaleketan Harilal Mehta Huf Vs. Ito-42(1)(1), (By Its Karta Kautilya Bhavan, Ketanmehta)No.B/1101, Bkc,Bandra(E), Siddhi Vinayak Tower, Mumbai-400051. Opp Phoenix Hospital, Chikuwadi, Mumbai-400092. Pan/Gir No. : Aaehk3266N Appellant .. Respondent Appellant By : Shri. Nishit Gandhi.Ar Respondent By : Shri. P.D. Chougule.Sr.Dr Date Of Hearing 02.04.2024 Date Of Pronouncement 03.06.2024 आदेश / O R D E R Per Pavan Kumar Gadale, Jm: The Appeal Is Filed By The Assessee Against The Order Of The National Faceless Appeal Centre (Nfac)(Cit(A)) Delhi Passed U/Sec 143(3) & U/Sec250 Of The Income Tax Act. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri. Nishit Gandhi.ARFor Respondent: Shri. P.D. Chougule.Sr.DR

Section 10(38)Section 68Section 69C

…e and sale transactions of shares and the timing together with the pricing thereon. Reliance in this regard is placed has been rightly placed by the ld AR on the decision of Hon’ble Supreme Court in the case of CIT vs Dhanrajgiri Raja Narasingirji reported in 91 ITR 544 (SC). 7.2. We find that the ld AR pleaded that in an online platform, there would be no nexus between the purchasers and the seller and the delivery of shares and payments would be made through their respective stock brokers. Hence the ld AO ought to have summoned the assessee’s brokers to examine the authenticity of the sale of shares of SRK Ind…

M/S A.C.Chokshi Share Brokers Pvt Limited, Mumbai vs. Assistant Commissioner of Income Tax Central Circle-1(3), Mumbai

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

ITA 2990/MUM/2022[2015-16]Status: DisposedITAT Mumbai23 Jan 2024AY 2015-16

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadalem/S. Ac Chokshi Acit, Cc-1(3) Share Brokers Pvt Ltd, 905, 9Th Floor, बनाम/ 2Nd Floor, Itts House, Pratishtha Bhavan, Vs. 28K Dubash Marg, Old Cgo Annex, Kala Ghoda, Fort, M.K.Road, Mumbai-400023. Mumbai-400020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabca3464E (""थ" / Respondent) (अपीलाथ" /Appellant)

For Appellant: Shri.Dharan Gandhi.ARFor Respondent: Shri.Manoj Kumar Sinha.DR

Section 271(1)(C)Section 37(1)

…incurred wholly and exclusively for the purpose of business. The Ld. AR relied on the following judicial decisions. 1.ITO Vs. Reliance Share & Stock Brokers (P.) Ltd., [2014] 51 taxmann.com 215 (Mumbai - Trib) 2.CIT Vs. Dhanrajgirji Raja Narasingirji, [1973] 91 ITR 544 (SC). 3.CIT Vs Shreyas S. Morakhia, [2012] 19 taxmann.com 64 (Bombay 4.Tata Consultancy services Ltd Vs DCIT&others Writ petition No.1964 of 2022(Bombay) 5.DCIT Vs Anil Dhirajlal Ambani (2018)93 taxmann.com492(Mumbai-Trib). 6.CIT Vs Desiccant Rotors International (p) Ltd (2012)347 ITR 32(Delhi). 8. The Ld. AR emphasized on the explanation 1 to…

ACIT, Circle-16(1), Delhi vs. News Nation Network Pvt. Ltd., Delhi

In the result, the appeal of the Revenue stands dismissed

ITA 1194/DEL/2022[2018-19]Status: DisposedITAT Delhi21 Dec 2023AY 2018-19

Bench: BEFORE, SHRI M. BALAGANESH (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

Section 133(6)Section 143(3)Section 68

…which the investment should be made, whether the investment should be made, etc. Reliance in this regard is placed on the celebrated decision of the Hon’ble Supreme Court in the case of Commissioner Of Income-Tax vs Dhanrajgiri Raja Narasingirji reported in 91 ITR 544 (SC). All the documents furnished by the parties clearly proved the identity of the investors, creditworthiness of the investors, and genuineness of the transactions beyond doubt within the meaning of section 68 of the Act. Further, both the investors are already existing equity and preferential share holders in the assessee company. In fact, sim…

Mothers Education Hub, Jaipur vs. ACIT, Circle-1, Jaipur

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

ITA 618/JPR/2023[2017-18]Status: DisposedITAT Jaipur30 Nov 2023AY 2017-18

Bench: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri P.C. Parwal, CAFor Respondent: Shri A.S. Nehra, Addl.CIT

Section 115BSection 142(1)Section 143(2)Section 250Section 4Section 40A(2)(b)Section 68

…y paid to each of the person is reasonable. AO, in the absence of any material on record, cannot put himself in the shoe of the businessman to decide what is unreasonable u/s 40A(2)(a). Hon’ble Supreme Court in case of CIT Vs. Dhanrajgirji Raja Narsinghgiriji 91 ITR 544(PB 106-109)held that it is not open to the department to prescribe in what circumstances he should incur that expenditure. Every businessman knows his best interest. Hence without pointing out any comparable instance, disallowance of 50% of the salary is unjustified and not as per law. 7 Mothers Education Hub, Jaipur. The finding of Ld. CIT(A) i…

Addl. CIT, Special Range- 1, New Delhi vs. Amway India Enterprises Pvt. Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 6707/DEL/2018[2012-13]Status: DisposedITAT Delhi08 May 2023AY 2012-13

Bench: Shri C.M. Garg & Dr. B. R. R. Kumaraddl. Cit, Vs. Amway India Enterprises Pvt. Ltd, 1St Floor, Plot No. 8, Elegance Special Range-1, New Delhi Tower, Jasola, New Delhi -110025 (Appellant) (Respondent) Pan: Aaaca5603Q Assessee By : Sh. Sudesh Garg, Adv Sh. Prince Bansal, Ca Ms. Bhavya Garg, Ca Revenue By: Sh. P. Praveen Sidharth, Cit Dr Date Of Hearing 16/02/2023 Date Of Pronouncement 08/05/2023

For Appellant: Sh. Sudesh Garg, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR

Section 32Section 37(1)

…the assessee to decide how best to protect his own interest. It is not open to Income-tax department to prescribe what expenditure an assessee should incur and in what circumstances he should incur that expenditure (CIT Vs. Dhanrajgiri Raja Narasingiri (1973) 91 ITR 544 (SC)). Expression "commercial expediency is not a term of art. It means everything that serves to promote commerce and includes every means suitable to that end. Commercial men are best experienced in commercial expediency (Indian Steel & Wire Products Ltd. Vs. CIT (1968) 69 ITR 379 (Cal)). In applying the test of commercial expediency for determi…

Siddharth Developers, Mumbai vs. Asstt Commissioner of Income Tax CC-5(3), Mumbai

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

ITA 707/MUM/2022[2017-18]Status: DisposedITAT Mumbai03 Jan 2023AY 2017-18

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blesiddharth Developers V. Acit – Central Circle – 5(3) 205 Commerce House Room No. 1906, 19Th Floor 140 N.M. Road, Fort Air India Building Nariman Point, Mumbai – 400 021 Mumbai - 400023 Pan: Abffs4068J (Appellant) (Respondent) Assessee Represented By : Shri Nishit Gandhi Department Represented By : Shri Salil Mishra

Section 142(1)Section 143(2)

…ow the Assessee should run its business. The AO cannot sit in the armchair of businessman and decide what is the appropriate quantum of expenditure or dictate the terms or circumstances for incurring the same [Ref.CIT vs Dhanrajgirji Raja Narsingirji - (1973) 91 ITR 544 (SC), et. al.]. In fact it has been held that the AO cannot disallow any expenditure merely because in his opinion the Assessee could have managed by incurring a lesser expenditure [Ref. Jamshedpur Motor Accessories Stores v/s CIT-(1974) 95 Taxman 664 (Patna), et. al.]. The AO also cannot decide the commercial expediency in incurring the said expe…