CIT v. Hero Cycles (P.) Ltd.

228 ITR 463Supreme Court of India1997#318 most cited

What is CIT v. Hero Cycles (P.) Ltd. authority for?

A point not examined on facts or in law cannot be treated as a mistake apparent on record for rectification purposes.

262

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2011 to 2026.

Also referred to as

CIT v. Hero Cycles (P.) Ltd. · Hero Cycles · 228 ITR 463 · 94 Taxmann 271 · mistake apparent on record · rectification · point not examined · facts or law · Section 143(3) · Section 14A

Also reported as

94 Taxmann 271

Sections most often in play

Section 143(3)Section 153ASection 115JBSection 14ASection 153DSection 153B(1)(b)Section 250Section 148

Issues it is cited on

section 234e(1)installation pesection 119(1)use of equipmentsection 253(2)dependent agent pesection 119(2)(a)section 44dagency peservice pefunctional analysissection 200a(1)(c)

Judgments citing CIT v. Hero Cycles (P.) Ltd.

M/S A K Transport Agency, Farrukhabad vs. CIT Appeal, Aligarh

In the result, the appeal is allowed

ITA 328/AGR/2016[2010-11]Status: DisposedITAT Agra30 Jul 2018AY 2010-11

Bench: Shri A. D. Jain

Section 143Section 143(3)Section 154Section 40A

…IN THE INCOME TAX APPELLATE TRIBUNAL AGRA (SMC) BENCH: AGRA BEFORE SHRI A. D. JAIN, JUDICIAL MEMBER I.T.A No. 328/Agra/2016 (ASSESSMENT YEAR-2010-11) M/s A.K. Transport Agency, Bagia Vs..ITO,Ward-2(1), Mangoo Lal Kaimganj, Farrukhabad. Farrukhabad. PAN:AAPFA3994E (Revenue) (Assessee) Assessee by Shri Atul Agarwal, CA & Ms. Anjali Joshi, Adv. Revenue by Shri Waseem Arshad, Sr.DR. Date of Hearing 31.05.2018 Date of Pronouncement 30 .07.2018 ORDER This is assessee’s appeal for A.Y. 2010-11, taking the following grounds: “1. In the present appeal, the issue relates to applicability of the provisions of secti…

M/S. A.P. Fashions Pvt. Ltd., Kolkata vs. ITO, Ward-11(1), Kolkata

In the result, appeal of the assessee is allowed

ITA 2072/KOL/2016[2008-09]Status: DisposedITAT Kolkata27 Jul 2018AY 2008-09

Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi) Assessment Year: 2008-09 M/S. A.P. Fashions Pvt. Ltd....…..…….……………………..……………………………………………….…..Appellant 227, A.J.C. Bose Road Kolkata – 700 020 [Pan : Aacca 0846 K] Income Tax Officer, Ward-11(1), Kolkata...........................................................……………..Respondent Appearances By: Shri S. Jhajharia & Shri Sujoy Sen, A/R, Appeared On Behalf Of The Assessee. Shri S. Dasgupta, Addl. Cit, D/R. Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : July 18Th, 2018 Date Of Pronouncing The Order : July 27Th, 2018 Order Per J. Sudhakar Reddy, Am :-

Section 115JSection 143(3)Section 154Section 250

…rom the record and an error, which is not obvious and patent and can only be discovered as a result of an argument, cannot qualify as an error apparent from the record. (emphashis ours) The Hon’ble Supreme Court in the case CIT vs. Hero Cycles P. Ltd. (1997) 228 ITR 463 (SC), held as follows:- Rectification under section 154 can only be made when glaring mistake of fact or law has been committed by the officer passing the order and it becomes apparent from the record. Rectification is not possible if the question is debatable. Moreover, the point which is not examined on fact or in law cannot be dealt with as mi…

ACIT, New Delhi vs. M/S. Maharani Enterprises, Delhi

The appeal of the Revenue is dismissed and Cross- Objection of the assessee is allowed

ITA 5806/DEL/2014[2011-12]Status: DisposedITAT Delhi24 Jul 2018AY 2011-12

Bench: Shri R. K. Panda & Ms Suchitra Kamble

Section 142(1)Section 143(1)Section 143(2)Section 194CSection 40

…culars cannot override or detract the provisions of law. 7. On the validity of the circular to support the addition and the relevance of circulars in general vis a vis the powers of the appellate authorities, the Supreme Court in, CIT v. Hero Cycles (P) Ltd. 228 ITR 463 (SC) held that it is a settled law that circulars can bind the Income Tax Officer but will not bind the appellate authority or the Tribunal or the courts or even the assessee. Further the Supreme Court in Bengal Iron Corporation v. CTO (1993) UPTC 1312 (SC) observed that so far as clarifications/ circulars issued by the Central Government and/or…

Spe Networks-India Inc, Mumbai vs. Asst DIT (It) RG 2(1), Mumbai

The appeals of the AO stand dismissed

ITA 652/MUM/2014[2010-11]Status: DisposedITAT Mumbai08 Nov 2017AY 2010-11
Section 254(1)Section 9

…inistration of law by all the Income-tax authorities in a specific situation and, therefore, validly issued under section 119 of the Income-tax Act. As such, the circular would be binding on the Department." 18. See also CIT v. Hero Cycles P. Ltd. [1997ANIMAX 228 ITR 463 (SC). It would thus be clear that Circular No. 23 would be binding on the Assessing Officer and had to be considered while assessing the tax liability of an assessee. 19. The Tribunal in its judgment has not considered the effect of the finding recorded by the Commissioner of Income-tax (Appeals) based on the Circular and which circular was relev…

DDIT (It) 2(1), Mumbai vs. Spe Networks India Inc., Mumbai

The appeals of the AO stand dismissed

ITA 511/MUM/2013[2006-07]Status: DisposedITAT Mumbai08 Nov 2017AY 2006-07
Section 254(1)Section 9

…inistration of law by all the Income-tax authorities in a specific situation and, therefore, validly issued under section 119 of the Income-tax Act. As such, the circular would be binding on the Department." 18. See also CIT v. Hero Cycles P. Ltd. [1997ANIMAX 228 ITR 463 (SC). It would thus be clear that Circular No. 23 would be binding on the Assessing Officer and had to be considered while assessing the tax liability of an assessee. 19. The Tribunal in its judgment has not considered the effect of the finding recorded by the Commissioner of Income-tax (Appeals) based on the Circular and which circular was relev…

Virgo Properties P Ltd., Chennai vs. ACIT, Chennai

In the result, the assessee’s appeal is dismissed

ITA 1208/CHNY/2017[2011-12]Status: DisposedITAT Chennai31 Jul 2017AY 2011-12

Bench: Shri Sanjay Arora & Shri Duvvuru Rl Reddy

For Appellant: Shri Srinivasan, Jt. CITFor Respondent: 13.07.2017
Section 139(1)Section 139(4)Section 143(3)Section 154Section 154(3)

…आयकर अपील"य अ"धकरण, ‘ए’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL BENCH ‘A’, CHENNAI "ी संजय अरोड़ा, लेखा सद"य एवं "ी धु"वु" आर.एल रे"डी, "या"यक सद"य के सम" । BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER आयकर अपील सं./ITA No.1208/Mds/2017 "नधा"रण वष" / Assessment Year : 2011-12 Virgo Properties Pvt. Ltd. Asst. Commissioner of Income New No.5, Old No.3, Vs. Tax, Plaza House, Thirumurthy Street, Corporate Circle – 3(2), T.Nagar, Chennai – 600 034. Chennai – 600 017. [PAN: AABCV 9182A] (अपीलाथ" /Appellant) (""यथ"/Respondent) Shri Balasubramanian, Advocate अपीलाथ…

Red Chillies Entertainment P. Ltd, Mumbai vs. DCIT (TDS) 3(2), Mumbai

In the result, all the appeals are partly allowed in terms of our directions contained in the orders passed in the aforesaid appeals

ITA 93/MUM/2015[2006-07]Status: DisposedITAT Mumbai28 Feb 2017AY 2006-07

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ()

Section 192Section 194Section 194JSection 201

…-tax Act. Where there is no specific provision in the agreement, it is basic law, i.e., the Income-tax Act, that will govern the taxation of income." The circulars of the CBDT are binding upon the Department. Reliance placed upon CIT v. Hero Cycles Pvt. Ltd. [228 ITR 463 (SC), 20 ITA 6655-6657/Mum/2014 ITA 92 & 93/Mum/23015 K.P. Varghese v. ITO 131 ITR 597 (SC) and UOl v. Azadi Bachao Andolan 263 ITR 706 (SC). Hon'ble Jurisdictional High Court in the case of CIT v. Siemens 4. Aktiongesellschaft [20091 310 ITR 320 (Born) held that where the provisions of the DTAA are more beneficial than provisions of the Act, th…

Red Chillies Entertainment P. Ltd, Mumbai vs. ACIT (TDS) 3(2), Mumbai

In the result, all the appeals are partly allowed in terms of our directions contained in the orders passed in the aforesaid appeals

ITA 92/MUM/2015[2005-06]Status: DisposedITAT Mumbai28 Feb 2017AY 2005-06

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ()

Section 192Section 194Section 194JSection 201

…-tax Act. Where there is no specific provision in the agreement, it is basic law, i.e., the Income-tax Act, that will govern the taxation of income." The circulars of the CBDT are binding upon the Department. Reliance placed upon CIT v. Hero Cycles Pvt. Ltd. [228 ITR 463 (SC), 20 ITA 6655-6657/Mum/2014 ITA 92 & 93/Mum/23015 K.P. Varghese v. ITO 131 ITR 597 (SC) and UOl v. Azadi Bachao Andolan 263 ITR 706 (SC). Hon'ble Jurisdictional High Court in the case of CIT v. Siemens 4. Aktiongesellschaft [20091 310 ITR 320 (Born) held that where the provisions of the DTAA are more beneficial than provisions of the Act, th…

Red Chillies Entertaiment P.Ltd, Mumbai vs. DCIT (TDS) 3(2), Mumbai

In the result, all the appeals are partly allowed in terms of our directions contained in the orders passed in the aforesaid appeals

ITA 6655/MUM/2014[2005-06]Status: DisposedITAT Mumbai28 Feb 2017AY 2005-06

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ()

Section 192Section 194Section 194JSection 201

…-tax Act. Where there is no specific provision in the agreement, it is basic law, i.e., the Income-tax Act, that will govern the taxation of income." The circulars of the CBDT are binding upon the Department. Reliance placed upon CIT v. Hero Cycles Pvt. Ltd. [228 ITR 463 (SC), 20 ITA 6655-6657/Mum/2014 ITA 92 & 93/Mum/23015 K.P. Varghese v. ITO 131 ITR 597 (SC) and UOl v. Azadi Bachao Andolan 263 ITR 706 (SC). Hon'ble Jurisdictional High Court in the case of CIT v. Siemens 4. Aktiongesellschaft [20091 310 ITR 320 (Born) held that where the provisions of the DTAA are more beneficial than provisions of the Act, th…

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

ITA 3232/MUM/2012[2008-09]Status: DisposedITAT Mumbai30 Nov 2016AY 2008-09

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

Section 143(3)Section 40

…the nature of income, then it cannot be brought to tax as income in the hands of the 33 M/s. Mumbai International Airport assessee. In this regard reliance has been placed on the judgement of the Hon’ble Supreme Court in the case of CIT vs Hero Cycles Pvt Ltd 228 ITR 463 (SC) and the decision of the Hon’ble Bombay High Court in the case of Banque National De Paris vs CIT 237 ITR 518 (Bom). Further, it was also argued that there is no estoppel against the law. If a receipt is not taxable income under the Income-tax law, then, it cannot be brought to tax in the hands of the assessee nor can tax be collected by the…

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

ITA 2760/MUM/2012[2008-09]Status: DisposedITAT Mumbai30 Nov 2016AY 2008-09

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

Section 143(3)Section 40

…the nature of income, then it cannot be brought to tax as income in the hands of the 33 M/s. Mumbai International Airport assessee. In this regard reliance has been placed on the judgement of the Hon’ble Supreme Court in the case of CIT vs Hero Cycles Pvt Ltd 228 ITR 463 (SC) and the decision of the Hon’ble Bombay High Court in the case of Banque National De Paris vs CIT 237 ITR 518 (Bom). Further, it was also argued that there is no estoppel against the law. If a receipt is not taxable income under the Income-tax law, then, it cannot be brought to tax in the hands of the assessee nor can tax be collected by the…

Samir Kumar Ghosh, Howrah vs. ITO, WD-16(4), Kolkata

In the result, the appeal of the Assessee is allowed

ITA 819/KOL/2015[2009-2010]Status: DisposedITAT Kolkata18 Nov 2016AY 2009-2010

Bench: Shri M.Balaganesh & Shri S.S. Viswanethra Ravi

Section 143(1)Section 154Section 6Section 6(1)(a)Section 6(5)Section 9

…tside India. That being the correct manner of computation of income u/ s.143( 1) of the Act in the case of the appellant, there was no mistake apparent from record in the relevant intimation. The Hon'ble Supreme Court in the case of CIT v Hero Cycles (P) Ltd. 228 ITR 463 has held that rectification u/s. 154 can only be made when glaring mistake of fact or law has been committed by the officer passing the order and it becomes apparent from record and rectification is not possible if the question is debatable. Hence, it is held that the AO was right in rejecting the appellant's application for rectification. Theref…

M/S. Escorts Heart Institute & Research Centre Ltd., New Delhi vs. ACIT, New Delhi

In the result appeal of the assessee is allowed on all the grounds

ITA 874/DEL/2014[2003-04]Status: DisposedITAT Delhi26 Oct 2016AY 2003-04

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishiescorts Heart Institute & Research Vs. Acit, Centre Ltd, Central Circle-3, Okhla Road, Okhla, New Delhi New Delhi Pan:Aaace8731F (Appellant) (Respondent)

For Appellant: Shri R. M. Mehta, AdvFor Respondent: Shri Subhash Verma, Sr. DR
Section 143(3)Section 147Section 154Section 234D

…ation is not possible if the question is debatable and further, the point which is not examined on fact or in law cannot be dealt with as the mistake apparent on record. He relied on the decision of the Hon'ble Supreme Court in case of Cit Vs. Hero Cycles Ltd 228 ITR 463. 6. We have carefully considered the rival contentions and also perused the order of the ld Assessing Officer. The assessee has claimed depreciation on electrical installation @25% , whereas according to the AO the depreciation should be allowed @15%. Furthermore, depreciation on Escorts Heart Institute and Research Centre Ltd, Vs. ACIT, UPS etc…

ACIT, New Delhi vs. M/S. Oriental Bank of Commerce, Gurgaon

In the result, appeal filed by the assessee is allowed and that of the Revenue stands dismissed

ITA 6068/DEL/2013[2005-06]Status: DisposedITAT Delhi10 Jun 2016AY 2005-06

Bench: Shri N K Saini & Smt. Beena A. Pillai

For Appellant: Shri KVSR Krishna CAFor Respondent: Shri Sunil Chander Sharma, CIT DR
Section 154Section 271Section 271(1)(c)Section 32Section 43(1)Section 43(6)Section 45(7)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E’, NEW DELHI BEFORE SHRI N K SAINI, ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER I.T.A. No.5866/Del/2013 (Assessment Year 2005-06) Oriental Bank of Commerce, Vs. ACIT, Circle 13(1), Central Accounts Officer, Plot No.5, New Delhi Sector 32, Industrial Area, Gurgaon GIR / PAN : AAACO0191M I.T.A.No. 6068/Del/2013 (Assessment Year 2005-06) ACIT, Circle 13(1), Vs. Oriental Bank of Commerce, New Delhi Central Account Office, Plot No.5, Sector 32, Gurgaon (Appellant) (Respondent) Appellant by :Shri KVSR Krishna CA Respondent by :Shri Sunil Chander S…

Oriental Bank of Commerce, Gurgaon vs. ACIT, New Delhi

In the result, appeal filed by the assessee is allowed and that of the Revenue stands dismissed

ITA 5866/DEL/2013[2005-06]Status: DisposedITAT Delhi10 Jun 2016AY 2005-06

Bench: Shri N K Saini & Smt. Beena A. Pillai

For Appellant: Shri KVSR Krishna CAFor Respondent: Shri Sunil Chander Sharma, CIT DR
Section 154Section 271Section 271(1)(c)Section 32Section 43(1)Section 43(6)Section 45(7)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E’, NEW DELHI BEFORE SHRI N K SAINI, ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER I.T.A. No.5866/Del/2013 (Assessment Year 2005-06) Oriental Bank of Commerce, Vs. ACIT, Circle 13(1), Central Accounts Officer, Plot No.5, New Delhi Sector 32, Industrial Area, Gurgaon GIR / PAN : AAACO0191M I.T.A.No. 6068/Del/2013 (Assessment Year 2005-06) ACIT, Circle 13(1), Vs. Oriental Bank of Commerce, New Delhi Central Account Office, Plot No.5, Sector 32, Gurgaon (Appellant) (Respondent) Appellant by :Shri KVSR Krishna CA Respondent by :Shri Sunil Chander S…

I.T.O WD - 8(3), Kolkata vs. M/S Polar Pharma (India)Ltd., Kolkata

In the result the appeal of the revenue is dismissed

ITA 2380/KOL/2013[2005-06]Status: DisposedITAT Kolkata01 Jun 2016AY 2005-06

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am] I.T.A No.2380/Kol/2013 Assessment Year : 2005-06 I.T.O., Ward-8(3) -Vs.- M/S. Polar Pharma (India) Ltd. Kolkata Kolkata [Pan : Aabcp5071A] (Respondent) (Appellant) For The Appellant : S.S.Alam, Jcit, Sr.Dr For The Respondent : Shri Manish Tiwari, Fca

For Appellant: S.S.Alam, JCIT, Sr.DRFor Respondent: Shri Manish Tiwari, FCA
Section 143(3)Section 154Section 2Section 36(1)(va)Section 43B

…asoning. A decision on a debatable point of law is not a mistake apparent from recovery. It was submitted that points which are not examined on facts or in law, cannot be dealt with as a mistake apparent from record. As held in CIT - Vs - Hero Cycles (P) Ltd. 228 ITR 463. Secondly the assessee pointed out that the following facts with regard to the prior period adjustment and employees contribution to PF : 1. Prior period adjustment - The aggregate amount of Rs. 7,86,242/ - includes major items viz bonus payment of Rs. 3,96,200/- and leave encashment of Rs. 2,23,850/-. The company provided bonus in the F.Y. 2003-…

Subex Limited, Bangalore vs. DCIT, Bangalore

In the result, Revenue’s appeal is partly allowed

ITA 373/BANG/2015[2010-11]Status: DisposedITAT Bangalore18 Mar 2016AY 2010-11

Bench: Shri B. Ramakotaiah & Shri Narendra Kumar Choudhury

For Appellant: Shri Raghunathan S., AdvocateFor Respondent: Ms. Neera Malhotra, CIT-II(DR)
Section 10ASection 143(3)Section 35D

…CBDT instructions are internal to the Officers and are not binding on the assessee. For this proposition, the ld. counsel relied on the decision of the Hon’ble Supreme Court in the case of Minwool Rock Fibres Ltd., (2012) 3 SCC 518 SC and CIT v. Hero Cycles, 228 ITR 463 (SC). 16.5 It was further submitted that Accounting Standards issued by Institute of Chartered Accountants of India (ICAI) are mandatory and there is no deviation from the same. The ld. counsel referred to Notes to the accounts and statements made by the Auditors to submit that assessee has not hedged foreign currency exposure to an extent of Rs.…

DCIT, C.C. I, Kolkata vs. Amarnath Shroff, Kolkata

In the result ITA Nos.1797 to 1800/Kol/2009 are allowed while ITA Nos

ITA 1494/KOL/2010[2001-02]Status: DisposedITAT Kolkata02 Mar 2016AY 2001-02

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ]

For Respondent: Shri Anil Kumar Pande, JCIT, Sr.DR
Section 132Section 132(4)Section 139(1)Section 153ASection 271(1)(c)Section 274

…so far as the payment of tax with interest is concerned as had been noted in the Appellate Order dated 26-8-2009 and such mistake is apparent from the records. In terms of the decision of the Supreme Court of India in CIT vs. Hero Cycles (P) Ltd, reported in 228 ITR 463 (SC) 1997, rectification under section 154 can be made when a glaring mistake of fact or law has been committed by the Officer passing the order and it is apparent from the records. It has also been held in the case of N. Rajamoni Amma vs. Deputy CIT reported in 86 CTR (Ker) 12, 1990 that the Commissioner of Income Tax being an authority mentione…

Amar Nath Shroff, Kolkata vs. Dy. Commissioner of Income Tax, Kolkata

In the result ITA Nos.1797 to 1800/Kol/2009 are allowed while ITA Nos

ITA 1797/KOL/2009[2001-02]Status: DisposedITAT Kolkata02 Mar 2016AY 2001-02

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ]

For Respondent: Shri Anil Kumar Pande, JCIT, Sr.DR
Section 132Section 132(4)Section 139(1)Section 153ASection 271(1)(c)Section 274

…so far as the payment of tax with interest is concerned as had been noted in the Appellate Order dated 26-8-2009 and such mistake is apparent from the records. In terms of the decision of the Supreme Court of India in CIT vs. Hero Cycles (P) Ltd, reported in 228 ITR 463 (SC) 1997, rectification under section 154 can be made when a glaring mistake of fact or law has been committed by the Officer passing the order and it is apparent from the records. It has also been held in the case of N. Rajamoni Amma vs. Deputy CIT reported in 86 CTR (Ker) 12, 1990 that the Commissioner of Income Tax being an authority mentione…

Karnataka State Beverages Corportion Limited vs. The Commissioner of Income Tax

WP/12872/2013HC Karnataka18 Feb 2016

Bench: The Hon’Ble Mr. Justice Anand Byrareddy Writ Petition No.12872 Of 2013 (T-It) Connected With Writ Petition No.14687 Of 2014 (T-It), Writ Petition No.15910 Of 2015 (T-It) & Writ Petition No.17514 Of 2015 (T-It) In W.P.No.12872 Of 2013 Between: Karnataka State Beverages Corporation Limited, Represented By It’S Executive Director (Finance), Sri. Shrikant B Vanahalli, Aged About 57 Years, No.78, Seethalakshmi Towers, Mission Road, Bangalore 560 027. …Petitioner

…ment and there is ample authority in this regard, namely: a) Navnit lal C. Javeri vs. K.K.Sen, AAC [1965] 56 ITR 198 (SC). b) Ellerman Lines Limited vs. CIT, [1971]82 ITD 913 (SC). c) CIT vs. Hero Cycles (Private) Limited, [1997] 94 Taxman 271/228 ITR 463(SC). d) State of Kerala and others vs. Kurian Abraham Private Limited and another, [2008] 303 ITR 284 (SC). Hence, the attempt to disallow the privilege fee in respect of the assessment years prior to 2014-15, is clearly without reference to any legal provision. The opinion expressed by the Assessing Officer is that the amendment to S…