CIT v. Indane Bislers

91 ITR 427High Court#9172 most cited

What is CIT v. Indane Bislers authority for?

Losses arising from forfeiture of security deposits due to non-performance of a trading contract are allowable as a deduction. Similarly, liquidated damages deducted from consideration for late delivery of goods as per contractual terms are also deductible as business expenses.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2019 to 2023.

Also referred to as

CIT v. Indane Bislers · 91 ITR 427 · forfeiture of security deposit · non-performance of trading contract · liquidated damages · late delivery · contractual terms · business loss · allowable deduction

Judgments citing CIT v. Indane Bislers

DCIT, Cir. 4(1), Kolkata vs. M/S Andrew Yule & Co. Ltd, Kolkata

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

ITA 191/KOL/2021[2007-08]Status: DisposedITAT Kolkata03 Aug 2023AY 2007-08

Bench: Shri Sanjay Garg, Hon’Ble & Dr. Manish Borad, Hon’Ble

For Appellant: Shri A.K. Bandyopahdyay, A/RFor Respondent: Shri P.P. Barman, Addl. CIT, Sr. D/R
Section 143(2)Section 14ASection 250

…ntral Trading Agency Vs. CIT 56 ITR 561 (All) wherein the Hon’ble High Court allowed the expenses incurred for liquidated damages under the head commercial expediency and also the decision of the Hon’ble Madras High Court in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn to the copies of the contract and other details and we agree with the Ld. CIT(A) that it was an inbuilt condition of the contract that in case of late delivery of goods, percentage of consideration as liquidated damages would be deducted by the customer while making payment. It is noted that the payment was made to t…

ACIT, Cir. 43, Kolkata vs. M/S K.B.Developers, Kolkata

In the result, the Revenue’s appeal as well as Cross Objection by the assessee both are dismissed

ITA 26/KOL/2021[2013-14]Status: DisposedITAT Kolkata22 Apr 2021AY 2013-14

Bench: Shri J. Sudhakar Reddy & Shri A.T. Varkey

Section 143(3)Section 250Section 45(4)

…n the course of business and that the earnest money was forfeited resulting into business loss of the assessee. 13. Such loss is allowable as a deduction as held in the following cases:- (i) Jawala Prosad Radha Kishan [79 ITR 580 (Allh.); (ii) Inden Bislers [91 ITR 427 (Madras)]; (iii) Kishangunge Madira Sangh [167 ITR 393]. Applying the proposition of law laid down in the case law to the facts of this case, we uphold the order of the ld. CIT(Appeals) on this issue and dismiss this disallowance of commission of Rs.17,10,000/-. 10 Assessment Year: 2013-2014 & C.O. No. 8/KOL/2021 (in ITA No. 26/KOL/2021) M/s.…

DCIT, Circle - 4(1), Kolkata vs. M/S. Andrew Yule & Co. Ltd., Kolkata

In the result, the appeal of the revenue is treated as partly allowed for statistical purpose

ITA 525/KOL/2019[2005-06]Status: DisposedITAT Kolkata22 May 2020AY 2005-06

Bench: Shri P.M. Jagtap, Vice- & Shri S.S. Viswanethra Ravi

…ntral Trading Agency Vs. CIT 56 ITR 561 (All) wherein the Hon'ble High Court allowed the expenses incurred for liquidated damages under the head commercial expediency and also the decision of the Hon'ble Madras High Court in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn to the copies of the contract and other details and we agree with the Ld. CIT(A) that it was an inbuilt condition of the contract that in case of late delivery of goods, percentage of consideration as liquidated damages would be deducted by the customer while making payment. It is noted that the payment was made to t…

DCIT, Circle - 4(1), Kolkata vs. M/S. Andrew Yule & Co. Ltd., Kolkata

In the result, this ground of the We find no infirmity in such a claim

ITA 630/KOL/2018[2004-05]Status: DisposedITAT Kolkata26 Feb 2020AY 2004-05

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Assessment Year: 2002-03 Assessment Year: 2003-04 Assessment Year: 2003-04

Section 142(1)Section 250

…l expediency and also the decision of the Hon'ble Madras High Court commercial expediency and also the decision of the Hon'ble Madras High Court commercial expediency and also the decision of the Hon'ble Madras High Court in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn to the copies of the contract and other details and we to the copies of the contract and other details and we agree with the Ld. CIT(A) agree with the Ld. CIT…

DCIT, Circle - 4(1), Kolkata vs. M/S. Andrew Yule & Co. Ltd., Kolkata

In the result, this ground of the We find no infirmity in such a claim

ITA 629/KOL/2018[2003-04]Status: DisposedITAT Kolkata26 Feb 2020AY 2003-04

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Assessment Year: 2002-03 Assessment Year: 2003-04 Assessment Year: 2003-04

Section 142(1)Section 250

…l expediency and also the decision of the Hon'ble Madras High Court commercial expediency and also the decision of the Hon'ble Madras High Court commercial expediency and also the decision of the Hon'ble Madras High Court in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn to the copies of the contract and other details and we to the copies of the contract and other details and we agree with the Ld. CIT(A) agree with the Ld. CIT…

DCIT, Circle - 4(1), Kolkata vs. M/S. Andrew Yule & Co. Ltd., Kolkata

In the result, this ground of the We find no infirmity in such a claim

ITA 628/KOL/2018[2002-03]Status: DisposedITAT Kolkata26 Feb 2020AY 2002-03

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Assessment Year: 2002-03 Assessment Year: 2003-04 Assessment Year: 2003-04

Section 142(1)Section 250

…l expediency and also the decision of the Hon'ble Madras High Court commercial expediency and also the decision of the Hon'ble Madras High Court commercial expediency and also the decision of the Hon'ble Madras High Court in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn to the copies of the contract and other details and we to the copies of the contract and other details and we agree with the Ld. CIT(A) agree with the Ld. CIT…

Altus Group (India) Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed, whereas the appeal of the Revenue is dismissed

ITA 1226/DEL/2016[2012-13]Status: DisposedITAT Delhi14 Nov 2019AY 2012-13

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2012-13

Section 36Section 36(2)Section 37Section 37(1)

…h deductions have been allowed. “Deduction should be allowed under this section in respect of a loss arising from forfeiture of security deposit as a result of non performance of a trading contract. Various case laws are Narandas v CIT 35ITR 461; CIT v Inden 91 ITR 427; CIT v Sugar dealers 100 ITR 424; Thackers v CIT134 ITR 21. Forfeiture of security deposit-lt covers forfeiture of deposits given as ‘security’ for the business purposes. Forfeiture of security deposited under a contract is Thackers H.P. & Co . Vs CIT 134 ITR 21. Losses arising from payments made in advance to employees or agents would form a prop…

DCIT, New Delhi vs. M/S. Altus Group (India) Pvt. Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed, whereas the appeal of the Revenue is dismissed

ITA 1276/DEL/2016[2012-13]Status: DisposedITAT Delhi14 Nov 2019AY 2012-13

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2012-13

Section 36Section 36(2)Section 37Section 37(1)

…h deductions have been allowed. “Deduction should be allowed under this section in respect of a loss arising from forfeiture of security deposit as a result of non performance of a trading contract. Various case laws are Narandas v CIT 35ITR 461; CIT v Inden 91 ITR 427; CIT v Sugar dealers 100 ITR 424; Thackers v CIT134 ITR 21. Forfeiture of security deposit-lt covers forfeiture of deposits given as ‘security’ for the business purposes. Forfeiture of security deposited under a contract is Thackers H.P. & Co . Vs CIT 134 ITR 21. Losses arising from payments made in advance to employees or agents would form a prop…

ACIT, Circle-4(1), Kolkata vs. M/S Andrew Yule & Company Ltd., Kolkata

In the result, the appeal of revenue for AY 2008-09 is dismissed and the appeals of revenue for AYs 2009-10, 2010-11 and 2011-12 are partly allowed for statistical purpose as directed above

ITA 1883/KOL/2016[2011-12]Status: DisposedITAT Kolkata20 Mar 2019AY 2011-12

Bench: Shri P.M. Jagtap & Shri A. T. Varkey, Jm]

…ntral Trading Agency Vs. CIT 56 ITR 561 (All) wherein the Hon’ble High Court allowed the expenses incurred for liquidated damages under the head commercial expediency and also the decision of the Hon’ble Madras High Court in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn to the copies of the contract and other details and we agree with the Ld. CIT(A) that it was an inbuilt condition of the contract that in case of late delivery of goods, percentage of consideration as liquidated damages would be deducted by the customer while making payment. It is noted that the payment was made to t…

ACIT, Circle-4(1), Kolkata vs. M/S Andrew Yule & Company Ltd., Kolkata

In the result, the appeal of revenue for AY 2008-09 is dismissed and the appeals of revenue for AYs 2009-10, 2010-11 and 2011-12 are partly allowed for statistical purpose as directed above

ITA 1882/KOL/2016[2010-11]Status: DisposedITAT Kolkata20 Mar 2019AY 2010-11

Bench: Shri P.M. Jagtap & Shri A. T. Varkey, Jm]

…ntral Trading Agency Vs. CIT 56 ITR 561 (All) wherein the Hon’ble High Court allowed the expenses incurred for liquidated damages under the head commercial expediency and also the decision of the Hon’ble Madras High Court in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn to the copies of the contract and other details and we agree with the Ld. CIT(A) that it was an inbuilt condition of the contract that in case of late delivery of goods, percentage of consideration as liquidated damages would be deducted by the customer while making payment. It is noted that the payment was made to t…

ACIT, Circle-4(1), Kolkata vs. M/S Andrew Yule & Company Ltd., Kolkata

In the result, the appeal of revenue for AY 2008-09 is dismissed and the appeals of revenue for AYs 2009-10, 2010-11 and 2011-12 are partly allowed for statistical purpose as directed above

ITA 1737/KOL/2016[2009-10]Status: DisposedITAT Kolkata20 Mar 2019AY 2009-10

Bench: Shri P.M. Jagtap & Shri A. T. Varkey, Jm]

…ntral Trading Agency Vs. CIT 56 ITR 561 (All) wherein the Hon’ble High Court allowed the expenses incurred for liquidated damages under the head commercial expediency and also the decision of the Hon’ble Madras High Court in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn to the copies of the contract and other details and we agree with the Ld. CIT(A) that it was an inbuilt condition of the contract that in case of late delivery of goods, percentage of consideration as liquidated damages would be deducted by the customer while making payment. It is noted that the payment was made to t…

DCIT, Cir-4, Kolkata vs. M/S Andrew Yule & Co. Ltd., Kolkata

In the result, the appeal of revenue for AY 2008-09 is dismissed and the appeals of revenue for AYs 2009-10, 2010-11 and 2011-12 are partly allowed for statistical purpose as directed above

ITA 676/KOL/2014[2008-2009]Status: DisposedITAT Kolkata20 Mar 2019AY 2008-2009

Bench: Shri P.M. Jagtap & Shri A. T. Varkey, Jm]

…ntral Trading Agency Vs. CIT 56 ITR 561 (All) wherein the Hon’ble High Court allowed the expenses incurred for liquidated damages under the head commercial expediency and also the decision of the Hon’ble Madras High Court in the case of CIT Vs. Indane Bislers 91 ITR 427 (Mad). Our attention was drawn to the copies of the contract and other details and we agree with the Ld. CIT(A) that it was an inbuilt condition of the contract that in case of late delivery of goods, percentage of consideration as liquidated damages would be deducted by the customer while making payment. It is noted that the payment was made to t…

CIT v. Indane Bislers (91 ITR 427) — Cited in 12 Judgments | BharatTax