CIT v. Jamnadas Khimji Kothari

XL ENTERPRISES LTD.,KOLKATA vs. ITO, WARD - 12(2), KOLKATA, KOLKATA

In the result, the appeal of the assessee is allowed

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

…ted as per Companies Act and as adjusted by the amount of depreciation as per the Act. The Ld. A.R., in defense of arguments, relied on the following decisions: i) Navnitlal C. Jhaveri vs. CIT in [1971] 80 ITR 582 (Bom) ii) CIT vs. Jamnadas Khimji in [1973] 92 ITR 105 (Bom) iii) ACIT vs. Yasin Hotels Pvt. Ltd. in ITA No. 1888/Mad/2007 for AY 2004-05 / [2009] 121 TTJ 713 (Chennai) iv) CIT vs. Pushparthy Packs P Ltd. [2014] 221 TAXMAN 403 (Bom) The Ld. A.R submitted that in all the above decisions it has been held that the accumulated profit has been ascertained after allowing depreciation as per Income Tax Ac…

DCIT, C.C.-XVI, KOLKATA, KOLKATA vs. M/S. EASTERN MINERAL & TRADING AGENCY, ASANSOL

In the result, all the appeals of the revenue and corresponding cross objections of the assessee are dismissed as under:-

…se finding of facts H’ble Delhi High Court held that such payment would not fall within the definition of deemed dividend under Section 2(22)(e). On the other hand Assessing officer has relied in the decision in case of CIT Vs. Jamunadas Khimji Kothari (1973) 92 ITR 105(BOM) where the finding of fact was that the assessee’s accounts with the company in which assessee was a shareholder was like a running overdraft loan account where the credit entries were never sufficient to shift the continuous debit balance of assessee in the books of the company in which assessee was a shareholder from the debit side to the cr…