How many judgments cite CIT v. Imperial Chemical Industries (I) Pvt Ltd.?

53 judgments on BharatTax cite CIT v. Imperial Chemical Industries (I) Pvt Ltd. (74 ITR 17), spanning 2015 to 2025.

Which sections of the Income Tax Act does CIT v. Imperial Chemical Industries (I) Pvt Ltd. come up under?

It is most often cited in judgments turning on Section 143(3), Section 153A, Section 147, Section 148, Section 263, Section 132.

CIT v. Imperial Chemical Industries (I) Pvt Ltd.

74 ITR 17Supreme Court of India1969#2186 most cited

What is CIT v. Imperial Chemical Industries (I) Pvt Ltd. authority for?

The assessee bears the onus to prove the veracity of claimed expenses. Income diverted by an overriding obligation before it is earned does not form part of the assessee's total income.

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. Imperial Chemical Industries · 74 ITR 17 · onus of proof · veracity of expenses · advertisement expenses · diversion of income · overriding obligation · application of income

Sections most often in play

Section 143(3)Section 153A Section 147 Section 148 Section 263 Section 132 Section 131(1A)Section 251

Issues it is cited on

place of effective management section 6(3)section 127(1)legal expenses ddt preponderance of probability principal officer shell company royalty income section 131(1a)colourable device section 16

Judgments citing CIT v. Imperial Chemical Industries (I) Pvt Ltd.

Assistant Commissioner of Income Tax Circle-1, Bareilly vs. Wave Distilleries and Breweries Limited, Bareilly

Appeals of the Department stand dismissed

ITA 153/LKW/2023[2013-14]Status: DisposedITAT Lucknow28 Feb 2025AY 2013-14

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudhary

For Appellant: S/Shri Salil Kapoor, Vibhu Jain and Sumit Lalchandani, AdvocatesFor Respondent: Smt. Richa Rastogi, CIT (DR)

Section 115JSection 148

…reaches the assessee and that if such title exists, the income never becomes the property of the assessee and, therefore, does not become taxable in their hands. Similarly, in the case of CIT vs. Imperial Chemical Industries India Pvt. Ltd. Reported in [1969] 74 ITR 17 (SC), the Hon'ble Apex Court differentiated between diversion of income by overriding title and application of income and ruled that where the income is diverted before it is earned due to overriding obligation, it does not form part of assessee’s total income. Thus, the primary difference would lie the timing and nature of income allocation. In th…

ACIT, New Delhi vs. Smt. Shashi Mehta, New Delhi

ITA 271/DEL/2015[2011-12]Status: DisposedITAT Delhi19 Feb 2025AY 2011-12

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…to prove the veracity of the expenses claimed by it. Reliance is also placed on the decision of Andhra Pradesh High Court in the case of CIT vs Transport Corporation of India Ltd. 256 ITR 701, and on the case of CIT vs Imperial Chemical Industries (I) P Ltd. 74 ITR 17. In many subsequent decisions, these principles have been applied. 230. Upon evaluating the findings discussed in the assessment order and the submissions of the appellant I am inclined to agree with the assessing officer that there is lack of enough material on record to justify the advertisement expenses of Rs. 39,00,00,000/- incurred by the appe…

M/S Ayodhya Faizabad Developement Authority, Faizabad vs. Dy. Commissioner of Income Tax (Exemption), Lucknow

ITA 520/LKW/2018[2015-16]Status: DisposedITAT Lucknow31 Jan 2025AY 2015-16

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudhary

For Appellant: Ms. Shweta Mittal, C.A. & Sh Mradul AgarwalFor Respondent: Sh. Ghiyasuddin CIT(DR) & Sh.Mazahar Akram, CIT

Section 11Section 12ASection 2(15)Section 58

…eipts fall under “diversion of income by overriding title” and should not be included in the income of the appellant. In this regard your honour’s kind attention is being drawn to the judgement of CIT v. Imperial Chemical Industries (India) Pvt. Ltd [1969] 74 ITR 17 (SC) wherein the Hon’ble Supreme Court distinguished between Diversion of Income and Application of Income. The court ruled that an obligation to apply the income in a particular way before it was received by an assessee or before it had accrued or arisen to the assessee resulted in the diversion of income. However, an obligation to apply inco…

M/S Ayodhya Faizabad Developement Authority, Faizabad vs. Dy. Commissioner of Income Tax (Exemption), Lucknow

ITA 518/LKW/2018[2012-13]Status: DisposedITAT Lucknow31 Jan 2025AY 2012-13

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudhary

For Appellant: Ms. Shweta Mittal, C.A. & Sh Mradul AgarwalFor Respondent: Sh. Ghiyasuddin CIT(DR) & Sh.Mazahar Akram, CIT

Section 11Section 12ASection 2(15)Section 58

Paramasivam Mahalingam, Ghaziabad vs. ACIT, Central Circle-6, New Delhi

ITA 281/DEL/2020[2014-15]Status: DisposedITAT Delhi17 Jan 2025AY 2014-15

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

Kuroda Electric India Private Limited, Haryana vs. ACIT, Circle 2(1), Gurgaon

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

ITA 3123/DEL/2023[2016-2017]Status: DisposedITAT Delhi08 Mar 2024AY 2016-2017

Bench: Shamim Yahya & Sh. Yogesh Kumar U.S.Ita No. 3123/Del/2023, A.Y. 2016-17 Kuroda Electric India Vs. Acit, Private Ltd. Circle -2(1), Unit No. 511, Gurgaon Suneity Business Tower, Sector-54, Golf Course, Road Gurgaon, Chakkarpur B.O., Gurgaon Haryana, India 122002 Pan : Aafck9587N Appellant Respondent

…led to discharge its onus. Relying on the decision of the Hon'ble ITAT in the case of Kanu Kitchen Kulture (P) Ltd Vs. DCIT [2014] 49 taxmann.com 64 (Delhi-Trib), Hon'ble Supreme Court in the case of CIT Vs. Imperial Chemical Industries (India) P. Ltd. [1969] 74 ITR 17, the Hon'ble ITAT held that burden of proving that a particular expense has been laid out or incurred wholly and exclusively for the purpose of business is entirely on the assessee. The discharge of the burden has to be effective and meaningful and not to cover up merely book entries and paper work. Accordingly claim of the appellant with regard t…

Kalburgi Cement Private Limited, Hyderabad vs. DCIT Circle -2(1), Hyderabad

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

ITA 573/HYD/2022[2018-19]Status: DisposedITAT Hyderabad15 May 2023AY 2018-19

Bench: Shri Rama Kanta Panda & Shri Laliet Kumar

For Appellant: Sri Kalyanasundaram, C.AFor Respondent: Sri Jeevan Lal Lavidiya

Section 142(1)Section 143(2)Section 143(3)Section 144BSection 263Section 270ASection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad Before Shri Rama Kanta Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member ITA.No.573/Hyd/2022 Assessment Year: 2018-19 Kalburgi Cement Private Vs. Dy.Commissioner of Limited, Income Tax, Hyderabad. Circle 2(1), Hyderabad. PAN : AACCV8513G. (Appellant) (Respondent) Assessee by: Sri Kalyanasundaram, C.A. Revenue by: Sri Jeevan Lal Lavidiya, CIT-DR Date of hearing: 25.04.2023 Date of pronouncement: 15.05.2023 O R D E R Per Shri Laliet Kumar, J.M. The captioned appeal arose against the assessment order passed by the Deputy Commission…

ACIT 22 (1), Mumbai vs. Cyprian Anthony Mascarenhas, Mumbai

In the result this appeal filed by the Revenue stands dismissed

ITA 6791/MUM/2019[2009-10]Status: DisposedITAT Mumbai01 Jul 2021AY 2009-10

Section 133(6)Section 147Section 37(1)

…as a genuine one. Reliance is also placed on the decision of the Hon'ble Andhra Paradesh High Court in the case of CIT vs. Transport Corporation of India Ltd., 256 ITR 701 and on the decision in the case of CIT vs. Imperial Chemical Industries (I) Pvt. Ltd., 74 ITR 17. The assessee has not produced copy of invoices, stock register, transport proof etc. the notice under section 133(6) of the Act sent to the above parties have returned with no reply. Further the assessee has not been able to produce the parties. In view of the above facts, an amount of Rs. 3,90,222/- corresponding to the non-genuine purchases was…

M/S Tirupati Carbons & Chemicals Pvt Ltd, Ranchi vs. DCIT Circle-3, Ranchi

In the result, the assessee’s appeal is partly allowed

ITA 55/RAN/2018[14-15]Status: DisposedITAT Ranchi10 Sept 2020

Bench: Shri S.S, Godara, Jm & Dr. A.L. Saini, Am M/S Tirupati Carbons & Chemicals Vs. Dcit, Circle-3, Ranchi Pvt. Ltd. 3P, Shree Gopal Complex, Court Road, Ranchi-834001. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacct5856A (अपीलाथ" /Appellant) .. (""थ" / Respondent)

For Appellant: Shri Devesh Poddar, ARFor Respondent: Shri A. K. Mohanti, JCIT, Sr. DR

Section 143(3)Section 37

…IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI ‘E-COURT’AT KOLKATA Before Shri S.S, Godara, JM & Dr. A.L. Saini, AM M/s Tirupati Carbons & Chemicals Vs. DCIT, Circle-3, Ranchi Pvt. Ltd. 3P, Shree Gopal Complex, Court Road, Ranchi-834001. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AACCT5856A (अपीलाथ" /Appellant) .. (""थ" / Respondent) Appellant by : Shri Devesh Poddar, AR Respondent by : Shri A. K. Mohanti, JCIT, Sr. DR सुनवाई की तारीख / Date of Hearing : 16/07/2020 घोषणा की तारीख/Date of Pronouncement : 10/09/2020 आदेश / O R D E R Per Bench: The captioned appeal filed by the assessee, pertaining to Assessment Year 20…

Sri Janarthana Spinning Mills, Coimbatore vs. ACIT, Coimbatore

In the result, the appeal of the assessee stands dismissed

ITA 366/CHNY/2016[2011-2012]Status: DisposedITAT Chennai21 Oct 2019AY 2011-2012

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy]

For Appellant: Shri. N. Arjun Raj, C.A. for S. Sridhar, AdvocateFor Respondent: Ms. Vidya Ramachandan, Addl. CIT

Section 143(3)Section 40A(2)(b)Section 40A(3)

…iled to discharge the burden of proving that the expenditure laid out were incurred wholly and exclusively for the purpose of business. We may further add that the Hon’ble Supreme Court in the case of CIT Vs Imperial Chemical Industries (Ind.) Pvt. Ltd (1969) 74 ITR 17 has unequivocally held that the burden of proving that a particular expenditure had been aid out or incurred wholly and exclusively for the purpose of business entirely lies on the assessee. The discharge of the burden had to be effective and meaningful and not to cover up by merely book entries and paper work. The mere fact of payment of commissio…

M/S Express Confectioners Pvt Ltd, Ranchi vs. DCIT Circle-1, Ranchi

In the result, appeal of the assessee is dismissed

ITA 73/RAN/2018[13-14]Status: DisposedITAT Ranchi21 May 2019

Bench: Shri Chandra Mohan Gargआयकर अऩीऱ सं./Ita No.73/Ran/2018 (नििाारण वषा / Assessment Year :2013-2014) M/S Express Confectioners Pvt. Vs. Dcit, Circle-1, Ranchi Ltd., C/O Sri Vinay Kumar Jalan, M/S O.P.Jalan & Associates Consultants Llp, 48 Cart Sarai Road, Upper Bazaar, Ranchi, Jharkhand, Pin-834001 स्थायी ऱेखा सं./ जीआइआर सं./ Pan/Gir No. : Aaace 4056 B (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : Shri Vinay Jalan & Rajiv Ranjan, Adv राजस्व की ओर से /Revenue By : Shri P.K.Mondal, Acit(Dr) सुनवाई की तारीख / Date Of Hearing : 20/05/2019 घोषणा की तारीख/Date Of Pronouncement 21/05/2019 आदेश / O R D E R This Appeal Has Been Filed By The Assessee Against The Order Of Commissioner Of Income Tax (Appeals), Ranchi, Jharkhand, Dated 09.02.2018 Passed In First Appeal No.Cit(A), Ranchi/10066/2016-17 For The Assessment Year 2013-2014. 2. The Assessee Has Raised The Following Grounds Of Appeal :- 1. For That, The Ld. Cit(A) Under The Facts & Circumstances Of The Case Erred In Confirming The Disallowance Made By The Ld. Assessing Officer Amounting To Rs. 27,422/- Under The Head 'Club Subscription Expenses', Without Appreciating The Fact That The Said Expense Was Incurred In 'Order To Entertain The Guests At A Comparatively Cheaper Rate. 2. For That, The Ld. Cit(A) Under The Facts & Circumstances Of The Case Erred In Confirming The Disallowance Made By The Ld. Assessing Officer Amounting To Rs.2,30,355/- On Account Of 'Loss On Sale Of Fixed Assets'.

For Appellant: Shri Vinay Jalan & Rajiv Ranjan, AdvFor Respondent: Shri P.K.Mondal, ACIT(DR)

Section 143(2)Section 143(3)Section 37Section 37(1)

…lace sufficient materials, he is not entitled to claim allowance under section 37(1). The position is well-settled by the judgments of the Apex Court in CIT v. Calcutta Agency Ltd. [1951] 19 ITR 191 and CIT v. Imperial Chemical Industries (I) (P.) Ltd. [1969] 74 ITR 17. Therefore, if the assessee fails to place sufficient materials, he is not entitled to claim allowance under section 37(l). In CIT v. Chandravilas Hotel [1987] 164 FUR 102 1 (Guj.) it is held that if the expenditure is doubted by the assessing authority, it is the duty of the assessee to prove by leading evidence that the expenditure was in fact, i…

Integral Urban Co-Operative Bank Ltd., Jaipur vs. Income Tax Officer, Ward-2-1, Jaipur

In the result, the appeal is partly allowed

ITA 1075/JPR/2018[2012-13]Status: DisposedITAT Jaipur13 May 2019AY 2012-13

Bench: Us. In This Appeal, The Assessee Bank Has Taken The Following Grounds Of Appeal:-

For Appellant: Shri Dilip Shivpuri (Adv.)For Respondent: Shri K.C. Meena (ACIT)

Section 145Section 234ASection 36(1)(viia)Section 36(1)(viii)Section 37(1)

…collect it, does so, ITA No. 809/JP/2015 & 1075/JP/2018 18 Integral Urban Cooperative Bank Ltd vs. ACIT/ITO not as part of his income, but for and on behalf of person to whom it is payable." 44. In CIT v. Imperial Chemical Industries (India) (P) Ltd. [1969] 74 ITR 17 (SC) the Court held that : "the payment of amounts by the respondent to the outgoing agents was not by an overriding title created either by act of parties or by operation of law, and it could not be said that the amount of compensation paid to the outgoing agents did not form part of the respondent's income. Applying the principles in Raja Bejoy S…

ITO 6(1)(2), Mumbai vs. Aristo Realty Developers Ltd, Mumbai

In the result, the appeal is partly allowed

ITA 4669/MUM/2016[2011-12]Status: DisposedITAT Mumbai18 Apr 2018AY 2011-12

Bench: Shri Joginder Singh () & Shri N.K. Pradhan () Assessment Year: 2011-12 Income Tax Officer-6(1)(2), M/S Aristo Reality R. No. 508, 5Th Floor, Aayakar Vs. Development Ltd. Bhavan, M.K. Road, 601, Symphony Mumbai-400020. Nehru Road, Vile Parle (E), Mumbai-400057 Pan No. Aaacl0593J Appellant Respondent Revenue By : Ms. Aarju Garodia, Dr Assessee By : Mr. Dilip Lakhani, Ar Date Of Hearing : 13/03/2018 Date Of Pronouncement : 18/04/2018

For Appellant: Mr. Dilip Lakhani, ARFor Respondent: Ms. Aarju Garodia, DR

Section 143

…in support of its expenses for business purposes in the foreign trips performed, the AO relying on the decision in CIT v. Calcutta Agency 19 ITR 191, CIT v. Transport Corporation of India Ltd. 256 ITR 701 and CIT v. Imperial Chemical Industries (I) Pvt. Ltd. 74 ITR 17 disallowed the above sum of Rs.29,91,772/-. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A), following the order of the Tribunal in the case of the assessee for the AY 2009-10 allowed the appeal. 5. Before us, the Ld. DR submits that the assessee was not able to file before the AO a single doc…

Shriram Chits (Maharashtra) Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

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

ITA 1902/MUM/2015[2010-11]Status: DisposedITAT Mumbai28 Feb 2018AY 2010-11

Bench: Shri Saktijit Dey () & Shri G Manjunatha ()

Section 143(3)

…s before me during the appellate proceedings. In view of the above, relying on the decision in the case of CIT v. Calcutta Agency Ltd. 19 ITR 191 (SC); CIT v. Transport Corporation of India Ltd. 256 ITR 701(AP) and CIT v. Imperial Chemical Industries (I) Ltd. 74 ITR 17 the disallowance of Rs.46,54,789/- made by the AO is confirmed.” 4. The Ld.AR for the assessee submitted that the Ld. CIT(A) was erred in confirming addition made by the AO towards adhoc disallowance of 50% of staff meeting expenses despite filing details of expenses which 3 ITA 1902/Mum/2015 includes conveyance allowance paid to staff but wrongl…

M/S Anjeon Inc., Bangalore vs. Income Tax Officer, Ward-4(4), Bangalore

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

ITA 1297/BANG/2014[2010-11]Status: DisposedITAT Bangalore02 Feb 2018AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raom/S.Anjeon Inc. No.131, 6Th Cross, Vinayaka Nagar, Katriguppe Main Road, Bengaluru. … Appellant Pan: Aapfa 6584 Q Vs. Income-Tax Officer, Ward 4(4), Bengaluru. … Respondent

For Appellant: Shri Ashok Kulkarni, AdvocateFor Respondent: Smt.Padma Meenakshi, JCIT(DR)

Section 143(3)

…iled to discharge the burden of proving that the expenditure laid out were incurred wholly and exclusively for the purpose of business. We may further add that the Hon’ble Supreme Court in the case of CIT Vs Imperial Chemical Industries (Ind.) Pvt. Ltd (1969) 74 ITR 17 has unequivocally held that the burden of proving that a particular expenditure had been laid out or incurred wholly and exclusively for the purpose of business entirely lies on the assessee. The discharge of the burden had to be effective and meaningful and not to cover up by merely book entries and paper work. The mere fact of payment of commissi…

JCIT, Bangalore vs. M/S Bhuwalka Pipes Pvt. Ltd., Bangalore

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

ITA 882/BANG/2016[2011-12]Status: DisposedITAT Bangalore31 Jan 2018AY 2011-12

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raojoint Commissioner Of Income-Tax (Osd), Circle 1(1)(2), Bengaluru. … Appellant Vs. M/S.Bhuwalka Pipes Pvt. Ltd. ‘Solus’, 8Th Floor, E & G, No.2 1St Cross Road, Jc Road, Bengaluru-560027. … Respondent Pan: Aabcb 7778 E

For Appellant: Shri P.Dinesha, AdvocateFor Respondent: Dr.Pradeep Kumar, Addl.CIT(DR)

Section 143(3)Section 14ASection 154Section 37

…iled to discharge the burden of proving that the expenditure laid out were incurred wholly and exclusively for the purpose of business. We may further add that the Hon’ble Supreme Court in the case of CIT Vs Imperial Chemical Industries (Ind.) Pvt. Ltd (1969) 74 ITR 17 has unequivocally held that the burden of proving that a particular expenditure had been laid out or incurred wholly and exclusively for the purpose of business entirely lies on the assessee. The discharge of the burden had to be effective and meaningful and not to cover up by merely book entries and paper work. The mere fact of payment of commissi…

M/S. Volvo India Pvt. Ltd., Bangalore vs. DCIT, Bangalore

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

ITA 1353/BANG/2010[2006-07]Status: DisposedITAT Bangalore11 Dec 2017AY 2006-07

Bench: Shri Inturi Rama Rao & Shri Lalit Kumarm/S.Volvo India Private Limited, Yalachahally Village, Tavarakere Post, Hoskote, Bangalore – 562 122. Pan: Aaacv 6747N … Appellant Vs. The Deputy Commissioner Of Income Tax, Ltu, … Respondent

For Appellant: Shri Neeraj Jain, CAFor Respondent: Ms. Neera Malhotra, CIT(DR)

Section 10ASection 143(3)Section 234CSection 234DSection 92C

…led to discharge the burden of proving that the expenditure laid out were incurred wholly and exclusively for the purpose of business. We may further add that the Hon'ble Supreme Court in the case of CIT v. Imperial Chemical Industries (Ind.) Pvt. Ltd. (1969) 74 ITR 17 has unequivocally held that the burden of proving that a particular expenditure had been aid out or incurred wholly and exclusively for the purpose of business entirely lies on the assessee. The discharge of the burden had to be effective and meaningful and not to cover up by merely book entries and paper work. The mere fact of payment of commissio…

ITO, Bangalore vs. M/S Safran Engineering Services India Private Limited, Bangalore

In the result, the appeal filed by the revenue is partly allowed

ITA 451/BANG/2015[2010-11]Status: DisposedITAT Bangalore20 Nov 2017AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raoit(Tp)A No.451/Bang/2015 (Assessment Year: 2010-11)

For Appellant: Ms.Neera Malhaotra, CIT(DR)For Respondent: Shri K.R.Vasudevan, Advocate

Section 10ASection 143(3)Section 92C

ITO, Ward-6(4), Kolkata vs. M/S. Wall Street Capital Market Private Limited, Kolkata

In the result, assessee’s appeal stands dismissed

ITA 2287/KOL/2014[2010-2011]Status: DisposedITAT Kolkata09 Dec 2016AY 2010-2011

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmedassessment Year :2006-07

Section 133(6)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

…e has produced only skeletal paper work of the arrangement without any iota of evidence about actual business services rendered. 6.1 We may further add that the Hon'ble Supreme Court in the case of CIT v. Imperial Chemical Industries (India) (P.) Ltd. [1969] 74 ITR 17 has ITA No.2257/Kol/2014 A.Y. 2006-07 M/s Cellcon vs. ITO Wd-1(1) Hgy. Page 5 unequivocally held that the burden of proving that a particular expenditure has been laid out or incurred wholly and exclusively for the purpose of business is entirely on the assessee. The discharge of the burden has to be effective and meaningful and not to cover up by…

M/S Ilc Industries Ltd., Hospet vs. DCIT, Bangalore

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

ITA 1009/BANG/2015[2007-08]Status: DisposedITAT Bangalore20 Sept 2016AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Zain Ahmed Khan, CAFor Respondent: Shri Sanjay Kumar, CIT(DR)

Section 143(3)Section 263Section 40aSection 80Section 80H

…ite law that onus lies on the assessee to prove that claim is allowable as deduction. CIT vs. Calcutta Agency Ltd. (19 ITR 191)(SC). We may further add that the Hon'ble Supreme Court in the case of CIT Vs. Imperial Chemical Industries (India) Pvt. Ltd. (1969) 74 ITR 17 has unequivocally held that the burden of proving that a particular expenditure had been laid out or incurred wholly and exclusively for the purpose of business entirely lies on the assessee. Thus, following well settled principles of law, we uphold the disallowance. Grounds of appeal of the assessee-company are dismissed. 20. Ground Nos.18 to 20…