CIT v. Indian Jute Mills Association

134 ITR 68High Court1982#3858 most cited

What is CIT v. Indian Jute Mills Association authority for?

Expenditure incurred includes depreciation claims. Necessary provisions required by statute, such as for gratuity and leave encashment, can be considered as applied for the objects of a trust.

30

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2013 to 2026.

Also referred to as

CIT v. Indian Jute Mills Association · section 44(A) · expenditure incurred · depreciation claim · provision for gratuity · leave encashment · applied · trust objects

Sections most often in play

Section 11Section 12Section 143(3)Section 147Section 10(23C)(vi)Section 12AASection 139(1)Section 148

Issues it is cited on

section 41(1)(a)casus omissussection 32(1)(iia)section 38initial assessment yearsection 11(1)(a)section 43(1)commercial rightssection 80hdividend distribution taxadditional depreciationsection 80hh

Judgments citing CIT v. Indian Jute Mills Association

ACIT Central Circle-1(4), Mumbai vs. Anandilal & Ganesh Podar Society, Mumbai

In the result, the appeal filed by the Revenue stands dismissed

ITA 4000/MUM/2025[2015-16]Status: DisposedITAT Mumbai27 Jan 2026AY 2015-16

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)

Section 11Section 12ASection 143(3)

…hment also required to be provided as mandated by Law. 7 Anandilal and Ganesh Podar Society Without being such provisions made, the balance sheet will not presen a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association [1982] 134 ITR 68 t Calcutta High Court while constructing the expression 'expenditure incurred in section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, In our considered view, in case of trust, the meaning 'applied' need not be construed as 'spent'. It includes the necessary provisions required to be made as per…

JCIT (OSD), Central Circle-20, Jahandewalan vs. Avantha Realty Ltd. (Earlier Know As Janpath Investment Holding Ltd.), Delhi

Appeal of the Revenue is partly allowed

ITA 566/KOL/2024[1999-00]Status: DisposedITAT Kolkata20 Nov 2025AY 1999-00

Bench: Appropriate

Section 250Section 263

…ntire liability as amassed in the year of issue or in the year of redemption would give a distorted picture of the profits of that particular year of assessment. In saying this Supreme Court referred with approval to the case of Indian Jute Mills' case [1982] 134 ITR 68, a decision of Justice Sabyasachi Mukharji when his Lordship was taking up the Reference Bench at the Calcutta High Court. The Supreme Court also approved of the decision of the Madhya Pradesh High Court in M. P. Financial Corporation's case [1987] 165 ITR 765. The references are given in the Supreme Court judgment. 8. Mr. Bajoria, appearing for t…

ACIT, Central Cirlce-1(4), Mumbai vs. Podar Education and Sports Trust, Bangalore

In the result, appeals of the Revenue are dismissed

ITA 4003/MUM/2025[2020-21]Status: DisposedITAT Mumbai31 Jul 2025AY 2020-21

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 11Section 12Section 12ASection 139(1)Section 143(3)Section 147Section 148

…rovision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association [1982] 134 ITR 68 the Calcutta High Court while constructing the expression 'expenditure incurred' in section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, in our considered view, in case of trust, the meaning 'applied' need not be construed as 'spent'. It includes the necessary provisions required to be made as p…

ACIT Central Circle 1(4) Mumbai, Mumbai vs. Podar Education and Sports Trust, Bangalore

In the result, appeals of the Revenue are dismissed

ITA 4002/MUM/2025[2019-20]Status: DisposedITAT Mumbai31 Jul 2025AY 2019-20

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 11Section 12Section 12ASection 139(1)Section 143(3)Section 147Section 148

…rovision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association [1982] 134 ITR 68 the Calcutta High Court while constructing the expression 'expenditure incurred' in section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, in our considered view, in case of trust, the meaning 'applied' need not be construed as 'spent'. It includes the necessary provisions required to be made as p…

ACIT Centra Circle-1(4), Mumbai vs. Podar Education Trust, Bangalore

In the result, appeals of the Revenue are dismissed

ITA 3999/MUM/2025[2021-22]Status: DisposedITAT Mumbai31 Jul 2025AY 2021-22

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 11Section 12Section 12ASection 139(1)Section 143(3)Section 147Section 148

…rovision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association [1982] 134 ITR 68 the Calcutta High Court while constructing the expression 'expenditure incurred' in section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, in our considered view, in case of trust, the meaning 'applied' need not be construed as 'spent'. It includes the necessary provisions required to be made as p…

Shri Digamber Jain Atikshaya Keshtra, Padampua vs. ITO Exemption Ward 1, Kailash Heights

In the result appeal of the assessee is partly allowed

ITA 424/JPR/2022[2010-11]Status: DisposedITAT Jaipur22 Aug 2023AY 2010-11

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Rajeev sogani (C.A)&For Respondent: Ms. Monisha Choudhary (Addl.CIT)
Section 11(2)Section 147Section 148Section 151Section 24Section 253(3)

…ection (IBPS) [131 Taxman 386](Bom)  CIT vs. ShethManilalRancchoddasVishramBhawan Trust ]198 ITR 598] (Guj)  CIT vs. Raipur Pallottine Society [180 ITR 579] (MP)  CIT vs. Ganga Charity Trust Fund [162 ITR 612] (Guj)  CIT vs. Indian Jute Mills Association [134 ITR 68] (Cal)  Director of Income Tax (Exemption) vs. FramjeeCawasjee Institute [109 CTR 463] (Bom) 3.2. Hon’ble ITAT Jaipur in the case of Compucom Foundation- ITA NO. ITA NO: 900/JP/16 has also agreed to the above contention of the assessee – Copy enclosed [CLC 33-40]. 3.3. The other decision of the Hon’ble Jaipur Bench covering the issue in favor of…

DCIT Cir 1(4), Mumbai vs. Anandilal & Ganesh Podar Society, Mumbai

In the result, all the appeals of the revenue are dismissed

ITA 1792/MUM/2021[2016-17]Status: DisposedITAT Mumbai10 Mar 2023AY 2016-17

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 147

…provision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association[1982] 134 ITR 68 the Calcutta High Court while constructing the expression 'expenditure incurred' in section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, in our considered view, in case of trust, the meaning ‘applied’ need not be construed as ‘spent’. It includes the necessary provisions required to be made as p…

DCIT Cir 1(4), Mumbai vs. Anandilal & Ganesh Podar Society, Mumbai

In the result, all the appeals of the revenue are dismissed

ITA 1791/MUM/2021[2014-15]Status: DisposedITAT Mumbai10 Mar 2023AY 2014-15

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 147

…provision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association[1982] 134 ITR 68 the Calcutta High Court while constructing the expression 'expenditure incurred' in section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, in our considered view, in case of trust, the meaning ‘applied’ need not be construed as ‘spent’. It includes the necessary provisions required to be made as p…

DCIT Cir 1(4), Mumbai vs. Anandilal & Ganesh Podar Society, Mumbai

In the result, all the appeals of the revenue are dismissed

ITA 1790/MUM/2021[2015-16]Status: DisposedITAT Mumbai10 Mar 2023AY 2015-16

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 147

…provision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association[1982] 134 ITR 68 the Calcutta High Court while constructing the expression 'expenditure incurred' in section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, in our considered view, in case of trust, the meaning ‘applied’ need not be construed as ‘spent’. It includes the necessary provisions required to be made as p…

DCIT-Ltu - 2, Mumbai vs. Ambuja Cements Ltd, Mumbai

In the result, the appeal of the revenue is dismissed

ITA 2958/MUM/2019[2010-11]Status: DisposedITAT Mumbai07 Nov 2022AY 2010-11
Section 143(3)Section 14A

…sec. 32(1)(iia) have been amended. In so far as the language used in the provision in concerned one has to construe the language beneficially and in favour of the assessee as held by the Jurisdictional High Court in the case of Indian JuteMill Association in 134 ITR 68. There is little merit in the contention of the AO that the asset is not new in the second year. In my view for claiming additional depreciation the assessee has to acquire and install the plant & machinery after 31-03-2005 and the same should be new in the year of installation. There is no requirement that the assets should be new in the year of…

DCIT (Ltu) 1, Mumbai vs. Ambuja Cements Ltd, Mumbai

In the result, the appeal of the revenue is thus dismissed

ITA 3307/MUM/2015[2008-09]Status: DisposedITAT Mumbai07 Nov 2022AY 2008-09
Section 115JSection 14Section 143(3)Section 14A

…& 1665/Mum/2019 ITA Nos. 3307/Mum/2015 & 2428/Mum/2019 Assessment years: 2008-09 and 2009-10 Page 34 of 51 construe the language beneficially and in favour of the assessee as held by the Jurisdictional High Court in the case of Indian JuteMill Association in 134 ITR 68. There is little merit in the contention of the AO that the asset is not new in the second year. In my view for claiming additional depreciation the assessee has to acquire and install the plant & machinery after 31-03-2005 and the same should be new in the year of installation. There is no requirement that the assets should be new in the year of…

Asst CIT Ltu, Mumbai vs. Ambuja Cements Ltd, Mumbai

In the result, the appeal of the revenue is dismissed

ITA 6405/MUM/2013[2007-08]Status: DisposedITAT Mumbai07 Nov 2022AY 2007-08
Section 143(3)Section 28

…sec. 32(1)(iia) have been amended. In so far as the language used in the provision in concerned one has to construe the language beneficially and in favour of the assessee as held by the Jurisdictional High Court in the case of Indian JuteMill Association in 134 ITR 68. ITA Nos. 6375 and 6405/Mum/2013 CO No. 166/Mum/2015 Assessment year: 2007-08 Page 15 of 42 There is little merit in the contention of the AO that the asset is not new in the second year. In my view for claiming additional depreciation the assessee has to acquire and install the plant & machinery after 31-03-2005 and the same should be new in the…

Ambuja Cements Ltd ( Formerly Known As Gujarat Ambuja Cements Ltd), Mumbai vs. Addl CIT 3(1), Mumbai

In the result, the appeal of the revenue is thus dismissed

ITA 2428/MUM/2013[2006-07]Status: DisposedITAT Mumbai07 Nov 2022AY 2006-07
Section 115JSection 14Section 143(3)Section 14A

…& 1665/Mum/2019 ITA Nos. 3307/Mum/2015 & 2428/Mum/2019 Assessment years: 2008-09 and 2009-10 Page 34 of 51 construe the language beneficially and in favour of the assessee as held by the Jurisdictional High Court in the case of Indian JuteMill Association in 134 ITR 68. There is little merit in the contention of the AO that the asset is not new in the second year. In my view for claiming additional depreciation the assessee has to acquire and install the plant & machinery after 31-03-2005 and the same should be new in the year of installation. There is no requirement that the assets should be new in the year of…

M/S. the Hunger Project, Mumbai vs. ITO(E)-2(4), Mumbai

In the result, appeal by the assessee is allowed

ITA 1467/MUM/2021[2014-15]Status: DisposedITAT Mumbai05 Sept 2022AY 2014-15

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Vinod Garg a/wFor Respondent: Shri Ajeya Kumar Ojha
Section 11(1)(a)Section 12ASection 250Section 40A(7)

…provision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association[1982] 134 ITR 68 the Calcutta High Court while constructing the expression 'expenditure incurred' in M/s. The Hunger Project ITA No.1332/Mum./2021 ITA NO.1467/Mum./2021 section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, In our considered view, in case of trust, the meaning „applied‟ need not be construed as „s…

M/S. the Hunger Project, Mumbai vs. ITO (Exemtptions)-2(4), Mumbai

In the result, appeal by the assessee is allowed

ITA 1332/MUM/2021[2014-15]Status: DisposedITAT Mumbai05 Sept 2022AY 2014-15

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Vinod Garg a/wFor Respondent: Shri Ajeya Kumar Ojha
Section 11(1)(a)Section 12ASection 250Section 40A(7)

…provision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association[1982] 134 ITR 68 the Calcutta High Court while constructing the expression 'expenditure incurred' in M/s. The Hunger Project ITA No.1332/Mum./2021 ITA NO.1467/Mum./2021 section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, In our considered view, in case of trust, the meaning „applied‟ need not be construed as „s…

Podar Education Sports Trust, Mumbai vs. Dy CIT, CC-1(4), Mumbai

In the result, assessee’s appeals for AY 2012-13 & 2013-14 are allowed and appeals for AY 2015-16 & 2016-17 are partly allowed

ITA 66/MUM/2021[2012-13]Status: DisposedITAT Mumbai25 Jan 2022AY 2012-13

Bench: Shri Shamim Yahya (Am) & Shri Kuldip Singh (Jm)

Section 139Section 139(1)Section 143(3)Section 153A

…provision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. 15. In CIT v. Indian Jute Mills Association[1982] 134 ITR 68 the Calcutta High Court while constructing the expression 'expenditure incurred' in section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." 16. Thus, In our considered view, in case of trust, the meaning 'applied' need not be construed as 'spent'. It includes the necessary provisions required to be made as p…

Deputy Commissioner of Income Tax (Exemptions), Circle-1, Bengaluru vs. Karnataka Industrial Areas Development Board, Bengaluru

In the result, both the appeals filed by revenue are dismissed

ITA 578/BANG/2021[2010-11]Status: DisposedITAT Bangalore05 Jan 2022AY 2010-11

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri
Section 11Section 11(1)(a)Section 143(3)Section 2(15)

…ation, the balance sheet will not present a true and fair view of the state of affairs; assets should be shown at a figure which represents that part of their value on acquisition, which has not yet expired." 15. In CIT v. Indian Jute Mills Association [1982] 134 ITR 68, the Calcutta High Court, while construing the expression "expenditure incurred" in s. 44A of the Act, observed : "depreciation claimed shall include the expenditure incurred." 16. There are only two recognised methods of accounting : (i) cash basis, and (ii) merecantile basis. Under the cash basis only cash transactions are recorded. It is only…

Deputy Commissioner of Income Tax (Exemptions), Circle-1, Bengaluru vs. Karnataka Industrial Areas Development Board, Bengaluru

In the result, both the appeals filed by revenue are dismissed

ITA 577/BANG/2021[2009-10]Status: DisposedITAT Bangalore05 Jan 2022AY 2009-10

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri
Section 11Section 11(1)(a)Section 143(3)Section 2(15)

…ation, the balance sheet will not present a true and fair view of the state of affairs; assets should be shown at a figure which represents that part of their value on acquisition, which has not yet expired." 15. In CIT v. Indian Jute Mills Association [1982] 134 ITR 68, the Calcutta High Court, while construing the expression "expenditure incurred" in s. 44A of the Act, observed : "depreciation claimed shall include the expenditure incurred." 16. There are only two recognised methods of accounting : (i) cash basis, and (ii) merecantile basis. Under the cash basis only cash transactions are recorded. It is only…

Anadilal & Ganesh Podar Society, Mumbai vs. DCIT (Exe) I(1), Mumbai

In the result, assessee’s appeal is allowed

ITA 5962/MUM/2019[2014-15]Status: DisposedITAT Mumbai03 Aug 2021AY 2014-15

Bench: Shri C.N. Prasad & Shri S. Rifaur Rahman

For Appellant: Ms. Ritu Kama KishoreFor Respondent: ShriBrajendra Kumar
Section 11Section 12ASection 143(3)

…he provision for gratuity and leave encashment also required to be provided as mandated by Law. Without being such provisions made, the balance sheet will not present a true and fair view of the state of affairs. In CIT v. Indian Jute Mills Association[1982] 134 ITR 68 the 15. Calcutta High Court while constructing the expression 'expenditure 8 Anandilal & Ganeshy Podar SocietySamria & Co. incurred' in section 44(A) of the Act observed: "depreciation claim shall include the expenditure incurred." Thus, In our considered view, in case of trust, the meaning 16. ‘applied’ need not be construed as ‘spent’. It inc…

DCIT, Circle - 11(1), Kolkata vs. M/S. Graphite India Ltd., Kolkata

ITA 474/KOL/2018[2008-09]Status: DisposedITAT Kolkata22 Nov 2019AY 2008-09

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am I.T.A Nos.472 & 474 & C.O Nos.64 & 66/Kol/2018 ("नधा"रण वष" / Assessment Years: 2007-08 & 2008-09) Dcit, Circle-11(1), Kolkata Vs. M/S. Graphite India Ltd. 31, Chowringhee Road, Kolkata- 700016. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaacc0457C (Appellant) .. (Respondent/Cross-Objector)

For Appellant: Dr. P. K. Srihari, CIT(DR)For Respondent: Ms. Ruchira Lakhotia, ACA
Section 143(3)Section 32(1)(iia)

…C.O Nos.64 & 66/Kol/2018 M/s. Graphite India Ltd. language used in the provision in concerned one has to construe the language beneficially and in favour of the assessee as held by the Jurisdictional High Court in the case of Indian Jute Mill Association in 134 ITR 68. There is little merit in the contention of the AO that the asset is not new in the second year. In my view for claiming additional depreciation the assessee has to acquire and install the plant & machinery after 31-03-2005 and the same should be new in the year of installation. There is no requirement that the assets should be new in the year of…

CIT v. Indian Jute Mills Association (134 ITR 68) — Cited in 30 Judgments | BharatTax