CIT v. Indo Nippon Chemicals Co. Ltd.

261 ITR 275Supreme Court of India2003#445 most cited

What is CIT v. Indo Nippon Chemicals Co. Ltd. authority for?

A liability recognized in accordance with the Accounting Standards prescribed by the Institute of Chartered Accountants of India (ICAI) is an allowable expense for income tax purposes.

204

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2007 to 2025.

Also referred to as

CIT v. Indo Nippon Chemicals Co. Ltd. · 261 ITR 275 · allowable expense · liability recognition · Accounting Standards · ICAI · Section 37(1) Income Tax Act · business expenditure · mercantile system of accounting · SC decision

Also reported as

130 Taxmann 179

Sections most often in play

Section 41(1)Section 36(1)(va)Section 37(1)Section 41(2)Section 43BSection 2(24)Section 115JBSection 143(3)

Issues it is cited on

section 153b(i)(a)section 132(8)section 132(9a)section 153(1)(a)section 145avaluation of sharessection 65bsection 65section 153(1)icdsdumb documentssection 153b

Judgments citing CIT v. Indo Nippon Chemicals Co. Ltd.

Income Tax Officer, Kollam vs. Olam Agro India Pvt Ltd, Gurgaon, Haryana

In the result, the appeal filed by the Revenue stands partly allowed for statistical purposes

ITA 591/COCH/2024[2021-22]Status: DisposedITAT Cochin31 Jul 2025AY 2021-22

Bench: Shri Inturi Rama Rao, Am & Shri Sonjoy Sarma, Jm Assessment Year: 2021-22 The Income Tax Officer .......... Appellant Aayakar Bhavan, Karbala Jn., Kollam 601001 [Pan: Aabch6830P] Vs. Olam Agro India Pvt. Ltd. .......... Respondent Tower A, 2Nd Floor, Dlf Building No. 8 Dlf Qe S.O., Gurgaon 122002 Appellant By: Smt. Veni Raj, Cit-Dr Respondent By: Shri Uday Agarwal, Ca Date Of Hearing: 10.06.2025 Date Of Pronouncement: 31.07.2025

For Appellant: Smt. Veni Raj, CIT-DRFor Respondent: Shri Uday Agarwal, CA
Section 143(1)Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI SONJOY SARMA, JM Assessment Year: 2021-22 The Income Tax Officer .......... Appellant Aayakar Bhavan, Karbala Jn., Kollam 601001 [PAN: AABCH6830P] vs. Olam Agro India Pvt. Ltd. .......... Respondent Tower A, 2nd Floor, DLF Building No. 8 DLF QE S.O., Gurgaon 122002 Appellant by: Smt. Veni Raj, CIT-DR Respondent by: Shri Uday Agarwal, CA Date of Hearing: 10.06.2025 Date of Pronouncement: 31.07.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the Revenue is directed against the order of the Commissioner of Inc…

Kodiyil Muhammed Madani Partner, Abc Sales Corporation, Taliparamba vs. ACIT, Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 837/COCH/2024[2020-21]Status: DisposedITAT Cochin20 Dec 2024AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Kodiyil Muhammed Madani Partner, Abc Sales Corporation, Taliparamba vs. ACIT, Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 836/COCH/2024[2019-20]Status: DisposedITAT Cochin20 Dec 2024AY 2019-20

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Kodiyil Muhammed Madani Partner, Abc Sales Corporation, Taliparamba vs. ACIT, Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 835/COCH/2024[2018-19]Status: DisposedITAT Cochin20 Dec 2024AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Abc Imports and Exports India (P) Ltd, Ernakulam vs. ACIT Central Circle, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 743/COCH/2024[2019-20]Status: DisposedITAT Cochin20 Dec 2024AY 2019-20

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Abc Sales Corporation, Kasargod vs. ACIT Central Circle-1, Calicut

In the result, appeal of the assessee is hereby dismissed

ITA 536/COCH/2024[2020-21]Status: DisposedITAT Cochin20 Dec 2024AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Abc Sales Corporation, Taliparamba vs. ACIT Central Circle-1, Calicut

In the result, appeal of the assessee is hereby dismissed

ITA 535/COCH/2024[2020-21]Status: DisposedITAT Cochin20 Dec 2024AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Abc Sales Corpoation, Payyannur vs. ACIT Central Circle-1, Calicut

In the result, appeal of the assessee is hereby dismissed

ITA 534/COCH/2024[2020-21]Status: DisposedITAT Cochin20 Dec 2024AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Abc Buildwares India (P) Limited, Pariyaram vs. ACIT Central Circle-1, Calicut

In the result, appeal of the assessee is hereby dismissed

ITA 533/COCH/2024[2020-21]Status: DisposedITAT Cochin20 Dec 2024AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Abc Buildware India (P) Limited, Pariyaram vs. ACIT, Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 532/COCH/2024[2016-17]Status: DisposedITAT Cochin20 Dec 2024AY 2016-17

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Abc Buildware India (P) Limited, Pariyaram vs. ACIT Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 531/COCH/2024[2015-16]Status: DisposedITAT Cochin20 Dec 2024AY 2015-16

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Kodiyil Muhammed Madani(Partner) Abc Sales Corporation, Taliparamba vs. ACIT, Central Circle, Calicut

In the result, appeal of the assessee is hereby dismissed

ITA 530/COCH/2024[2020-21]Status: DisposedITAT Cochin20 Dec 2024AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Kodiyil Muhammed Madani(Partner Abc Sales Corporation)., Taliparamba vs. ACIT, Central Circle-1, Calicut

In the result, appeal of the assessee is hereby dismissed

ITA 529/COCH/2024[2019-20]Status: DisposedITAT Cochin20 Dec 2024AY 2019-20

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Kodiyil Muhammed Madani, Partner (Abc Sales Corporation), Taliparamba vs. ACIT Central Circle-1, Calicut

In the result, appeal of the assessee is hereby dismissed

ITA 528/COCH/2024[2018-19]Status: DisposedITAT Cochin20 Dec 2024AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Kodiyil Muhammed Madani, Partner (Abc Sales Corporation), Taliparamba vs. ACIT Central Circle-1, Calicut

In the result, appeal of the assessee is hereby dismissed

ITA 524/COCH/2024[2017-18]Status: DisposedITAT Cochin20 Dec 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Kodiyil Muhammed Madani, Partner(Abc Salaes Corporation), Taliparamba vs. ACIT, Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 523/COCH/2024[2013-14]Status: DisposedITAT Cochin20 Dec 2024AY 2013-14

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the "net method", namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Muahammed Jabir, Taliparamba vs. ACIT< Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 522/COCH/2024[2020-21]Status: DisposedITAT Cochin20 Dec 2024AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the &quot;net method&quot;, namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Muahammed Jabir, Taliparamba vs. ACIT, Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 521/COCH/2024[2019-20]Status: DisposedITAT Cochin20 Dec 2024AY 2019-20

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the &quot;net method&quot;, namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Muahammed Jabir(Partner, Abc Sales Corporation), Taliparamba vs. ACIT, Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 520/COCH/2024[2018-19]Status: DisposedITAT Cochin20 Dec 2024AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the &quot;net method&quot;, namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…

Muahammed Jabir, Partner Abc Sales Corporation, Taliparamba vs. ACIT Central Circle-1, Kozhikode

In the result, appeal of the assessee is hereby dismissed

ITA 519/COCH/2024[2017-18]Status: DisposedITAT Cochin20 Dec 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri Soundararajan K

Section 250

…s to the government are shown in a separate account—then the valuation of stock should exclude such taxes or cess.In reaching this conclusion, we rely on the guidance provided by the Hon’ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (261 ITR 275), wherein it was held as follows: 5. Mr. P.J. Pardiwala, learned counsel for the respondent in C.A. No. 2161 of 2002 and 2164-2165 of 2002, points out that the assessees have all uniformly adopted the &quot;net method&quot;, namely, valuing the raw materials at the purchase price minus Modvat credit. This method was also adopted by them while valuing the…