CIT v. J.J. Industries

358 ITR 531High Court2013#9986 most cited

What is CIT v. J.J. Industries authority for?

For the purpose of Section 40(b)(v) of the Income Tax Act, 1961, which deals with the disallowance of remuneration to partners, 'book profit' includes interest income from fixed deposits held for business purposes, and net profit should be ascertained from the profit and loss account, not just business income alone.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2023.

Also referred to as

CIT v. J.J. Industries · section 40(b) · section 29 · section 30 · income from other sources · book profit · partner remuneration · interest income · net profit · Gujarat High Court

Also reported as

35 Taxmann.com 103

Issues it is cited on

section 40(b)section 30section 29section 40income from other sourcesprevious yeartotal incomebusinessinterest

Judgments citing CIT v. J.J. Industries

M/S Feelings, Margao vs. The Principal Commissioner of Income Tax, Panaji

The appeal is ALLOWED in above terms

ITA 149/PAN/2019[2014-15]Status: DisposedITAT Panaji01 Sept 2023AY 2014-15

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshaliआयकर अपील सं. / Ita No. 149/Pan/2019 धििाारण वर्ा / Assessment Year : 2014-15 M/S. Feelings, H. No. 2730, Murida, Fatorda Margao Goa- 403601 Pan:Aabff4135A . . . . . . . अपीलाथी / Appellant

For Appellant: Shri Rahul SardaFor Respondent: Shri N. Shrikanth
Section 143(3)Section 253(1)Section 263Section 30Section 40

…ted while computing the net profit.’ ITAT-Pune Page 3 of 6 M/s. Feelings ITA No.149/PAN/2019 AY: 2014-15 5. We find that the present issue is squarely covered by the judgement of Hon’ble Gujarat High Court in the case of ‘CIT Vs J J Industries’ reported in 358 ITR 531’ wherein their Lordships have held that; ‘The said chapter nowhere provides that method of accounting for the purpose of ascertaining net profit should be the only income from business alone and not from other sources. S. 29 provides how the income from profits and gains of business should be computed and this has to be done as provided u/s 30 to…

M/S. K.K Abraham and Company, Kochi vs. The ITO, Non Corporate Ward 1(3), Kochi

In the result, the appeals filed by the assessee are allowed

ITA 854/COCH/2022[2014-2015]Status: DisposedITAT Cochin03 Mar 2023AY 2014-2015

Bench: Shri George George K. & Ms. Padmavathy S.

For Appellant: Shri Narayanan P. Potty, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr. DR
Section 29Section 30Section 40Section 5

…e profit and loss account, not the profit computed under the head 'profits and gains of business or profession'. 5. The Appellant is relied on the decision of the Hon'ble Gujarat High Court in the case of Commissioner of Income Tax vs. J J Industries [ {2013} 358 ITR 531(Guj)].The copy of the judgment is attached here as Annexure A.” 3. The brief facts of the case are as follows: - For assessment years 2013-14 & 2014-15 assessments were completed by disallowing portion of partners remuneration claimed under Section 40(b) of the Income Tax Act, 1961 (the Act) by Rs.1,50,000/- and Rs.2,24,216/- respectively. The as…

M/S. K.K Abraham and Company, Kochi vs. The ITO, Non Corporate Ward 1(3), Kochi

In the result, the appeals filed by the assessee are allowed

ITA 853/COCH/2022[2013-2014]Status: DisposedITAT Cochin03 Mar 2023AY 2013-2014

Bench: Shri George George K. & Ms. Padmavathy S.

For Appellant: Shri Narayanan P. Potty, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr. DR
Section 29Section 30Section 40Section 5

…e profit and loss account, not the profit computed under the head 'profits and gains of business or profession'. 5. The Appellant is relied on the decision of the Hon'ble Gujarat High Court in the case of Commissioner of Income Tax vs. J J Industries [ {2013} 358 ITR 531(Guj)].The copy of the judgment is attached here as Annexure A.” 3. The brief facts of the case are as follows: - For assessment years 2013-14 & 2014-15 assessments were completed by disallowing portion of partners remuneration claimed under Section 40(b) of the Income Tax Act, 1961 (the Act) by Rs.1,50,000/- and Rs.2,24,216/- respectively. The as…

The Jt.CIT(OSD) Anand Circle, Anand vs. M/S. Asian Food Industries, Kheda

In the result, the appeal of the Revenue is dismissed

ITA 159/AHD/2022[2016-17]Status: DisposedITAT Ahmedabad30 Sept 2022AY 2016-17

Bench: Shri P.M. Jagtap, Vice- & Ms. Suchitra R. Kambleassessment Year : 2016-17 The Joint Commissioner Of M/S. Asian Food Industries, Income-Tax (Osd), Vs N.H. No. 8, Opp. Escort Tractor, Anand Circle, Post. Dabhan, Tal. Nadiad, Anand Dist. Kheda, Dabhan-387320 Pan : Aaefa 1288 Q (Appellant) (Respondent) Assessee By : Shri D.K. Parikh, Ar Revenue By : Shri Satish Solanki, Sr. Dr. सुनवाई क" तार"ख/Date Of Hearing : 30/09/2022 घोषणा क" तार"ख /Date Of Pronouncement: 30/09/2022

For Appellant: Shri D.K. Parikh, ARFor Respondent: Shri Satish Solanki, Sr. DR
Section 143(2)Section 28Section 29Section 30Section 40

…essee relying upon the judgment passed by the Jurisdictional High Court with the following observations: "5. We find that the issue in appeal is now squarely covered by the judgment of Hon'ble Jurisdictional High Court in the case of CIT vs. J.J. Industries (358 ITR 531) wherein their Lordships have upheld the Tribunal's stand to the effect that for the purpose of ascertaining ceiling on the basis of book profit, the profit shall be in the profit and loss account. The interest income, therefore, cannot notionally be excluded for the purpose of determining the allowable deduction of remuneration paid to the partn…

The DCIT, Circle-1(2), Baroda vs. M/S. Niyati Construction Co., Baroda

In the result, the appeal of the Revenue is dismissed

ITA 3559/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad25 Oct 2021AY 2010-11

Bench: Shri Mahavir Prasad & Shri Amarjit Singhआयकर अपील सं./I.T.A. No. 3559/Ahd/2016 ("नधा"रण वष" / Assessment Year: 2010-11) Dcit M/S. Niyati Construction बनाम/ Co., E-301 & E-307, Circle-1(2), Vs. Kalpvruksh Complex, 2Nd Floor, Aaykar Bhavan, Near T. B. Hospital, Race Course Circle, Gotri Road, Baroda Vadodara "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfn0411E .. (अपीलाथ"/Appellant) (""यथ" / Respondent)

For Appellant: Shri K. P. Singh, ARFor Respondent: 11/10/2021
Section 143(3)Section 194CSection 263Section 40

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘D’ अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 3559/Ahd/2016 ("नधा"रण वष" / Assessment Year: 2010-11) DCIT M/s. Niyati Construction बनाम/ Co., E-301 & E-307, Circle-1(2), Vs. Kalpvruksh Complex, 2nd Floor, Aaykar Bhavan, Near T. B. Hospital, Race Course Circle, Gotri Road, Baroda Vadodara "थायीलेखासं./जीआइआरसं./PAN/GIR No.: AACFN0411E .. (अपीलाथ"/Appellant) (""यथ" / Respondent) Shri Purushottam Kumar, Sr. DR अपीलाथ" ओर से/Appellant by : Sh…

M/S. Mac Industries, Valsad vs. The Income Tax Officer, Ward- 6, Vapi

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

ITA 1036/AHD/2016[2009-10]Status: DisposedITAT Surat19 Oct 2020AY 2009-10

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita No.1036/Ahd/2016 ("नधा"रणवष" / Assessment Year: (2009-10) M/S. Mac Industries, Vs. Income Tax Officer, Plot No.1, 2407/2, Gidc, Sarigam, Ward-6, Vapi. Ta- Umbergaon, Valsad-396230. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefm2011M (Assessee) (Respondent) Assessee By : Shri Hardik Vora - Ar Respondent By : Ms Anupama Singhla – Sr. Dr सुनवाईक"तार"ख/ Date Of Hearing : 22/09/2020 घोषणाक"तार"ख/Date Of Pronouncement : 19/10/2020 आदेश / O R D E R Per Dr. A. L. Saini:

For Appellant: Shri Hardik Vora - ARFor Respondent: Ms Anupama Singhla – Sr. DR
Section 143(3)Section 147Section 40

…narrated by us in above para, we are of the view that the issue raised by the assessee before us in no longer res integra. The assessee`s issue is covered by the judgment of the Jurisdictional Hon'ble Gujarat High in the case of CIT V/s J.J. Industries (2013) 358 ITR 531, wherein it was held. that interest on fixed ITA 1036/Ahd/2016 Assessment Year. 2009-10 M/s. Mac Industries deposits held. by a firm for its business purpose is part of business income and it will be included in “Book Profit”. The findings of the Hon`ble Court is reproduced below: “The revenue is in appeal against the judgment of the Income Tax…

The ACIT, Kheda Circle, Nadiad vs. M/S. Asian Food Industries, Nadiad

In the result, revenue’s appeal is dismissed

ITA 277/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad28 Jan 2019AY 2012-13

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

For Appellant: Shri S. K. Dev, Sr. D. RFor Respondent: Shri D. K. Parikh, A. R
Section 142(1)Section 143(2)Section 143(3)Section 28Section 29Section 30Section 40Section 40b

…reliance upon the decision of ITAT, Ahmedabad Bench in the case of Akshar Associates Vs. ACIT ITA No.2583/Ahd/2011. This decision of the jurisdictional Tribunal is based upon the decision of Hon'ble High Court of Gujarat in the case of CIT Vs. J.J. Industries 358 ITR 531 Gujarat. In this decision, the High Court had held that interest from fixed deposit of spare fund cannot be excluded from book profit for purpose of determining allowable deduction of remuneration paid to partners. Thus, the jurisdictional High Court had clearly held that interest earned from FDR made out of surplus fund available with the assess…

M/S Kaypee Exporters vs. The Asst. Commissioner

The appeals are disposed off accordingly

ITA/3/2010HC Karnataka22 Nov 2018

Bench: The Hon'Ble Mr. Justice Ravi Malimath

Section 143(3)Section 260Section 40Section 80H

…nt 9 not the profit computed under the head ‘profit and gains of business or profession.” 9. He also relies on the judgment of the High Court of Gujarat in the case of COMMISSIONER OF INCOME-TAX v. J.J. INDUSTRIES reported in [2013] 358 ITR 531, with reference to Paragraph No.7 wherein, the Assessing Officer accepted the plea of the assessee that the interest income derived by the assessee from the bank was ‘business income’. His further contention is that, the interest income is to be considered under the head ‘income from other sources’. To this effect, he also relies on the j…

M/S Grn vs. Builders, Chennai

In the result, the assessee’s appeal is allowed

ITA 408/CHNY/2018[2005-06]Status: DisposedITAT Chennai30 Oct 2018AY 2005-06

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकरअपीलसं/.I.T.A. No. 408/Chny/2018 "नधा"रणवष"/Assessment Year : 2005-06

For Appellant: Mrs.Sushma Harini, AdvocateFor Respondent: Shri. B. Sagadevan, JCIT
Section 40

…आयकर अपील"य अ"धकरण ,’ डी (SMC) ’ "यायपीठ,चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL “D(SMC)” BENCH, CHENNAI "ी एन. आर. एस .गणेशन, "या"यक सद"य एवं "ी एस जयरामन, लेखा सद"यके सम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER आयकरअपीलसं/.I.T.A. No. 408/Chny/2018 "नधा"रणवष"/Assessment Year : 2005-06 M/s. GRNVS Builders, Income Tax Officer, A-1-14, (Basement), Vs. Non Corporate Ward -1(2), Nelsom Chambers, No. 121, Nungambakkam High Road, 115, Nelson Manickam Road, Chennai – 600 034. Chennai – 600 029. [PAN: AAAFG 0406E] (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee by : Mrs.…

Vimal and Sons, Pune vs. Income-Tax Officer, Ward - 3(1), Pune

In the result, appeal of the assessee is allowed

ITA 2169/PUN/2017[2010-11]Status: DisposedITAT Pune13 Mar 2018AY 2010-11

Bench: Shri D. Karunakara Rao, Am

For Appellant: Smt. Deepa KhareFor Respondent: Shri Ajay Modi, JCIT
Section 143(3)Section 40

…पुणे "यायपीठ "यायपीठ "यायपीठ “SMC” पुणे "यायपीठ पुणे म"म"म"म" आयकर आयकर अपीलीय आयकर आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण पुणे अिधकरण पुणे पुणे पुणे पुणे IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE "ी "ी डी "ी "ी डी. क"णाकरा क"णाकरा क"णाकरा राव क"णाकरा लेखा सद"य सद"य सद"य केकेकेके सम" सद"य सम" सम" सम" डी डी राव राव, लेखा राव लेखा लेखा BEFORE SHRI D. KARUNAKARA RAO, AM आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं. / ITA No.2169/PUN/2017 अपील िनधा"रण िनधा"रण वष" िनधा"रण िनधा"रण वष" वष" / Assessment Year : 2010-11 वष" Vimal and Sons, 6, Abhyuday Apartments, Bhandarkar Road, Pune – 411 004 अपीलाथ"…

Ram Lal Kapoor & Sons, New Delhi vs. ACIT, New Delhi

In the result we reverse the finding of the ld CIT(A) and delete the penalty levied u/s 271(1)(c) of Rs

ITA 313/DEL/2016[2007-08]Status: DisposedITAT Delhi13 May 2016AY 2007-08

Bench: Smt Diva Singh & Shri Prashant Maharishiram Lal Kapoor & Sons, Acit, 2596, Nair Sarak, Circle-46(1), Vs. New Delhi New Delhi Pan:Aaafr0160Q (Appellant) (Respondent)

For Appellant: Sh. Y. K. Sharma, CAFor Respondent: Sh. K. K. Jaiswal, DR
Section 143(3)Section 271(1)Section 271(1)(c)Section 275Section 275(1)(a)Section 40

…me. For this, he relied on the decision of Hon’ble Delhi High Court in case of CIT Vs. Mohair Investments and Trading Co. Pvt. Ltd. dated 30.09.2011 in ITA No.511/2011. He also relied on the order of Hon’ble Gujarat High Court in case of CIT Vs. JJ Industries 35 Taxmann.com 103 (Guj). 6. Ld DR relied on the orders of lower authorities. 7. We have carefully considered the rival contention. In this case, order of ld CIT (A) dated 06.07.2011 was received by the Commissioner of Income Tax on 05.08.2011 and penalty order was passed on 22.03.2013. The penalty order dated 30.03.2013 was sent to assessee by speed post on…

CIT v. J.J. Industries (358 ITR 531) — Cited in 11 Judgments | BharatTax