CIT v. Jatia Manufacturing Investment Co (P) Ltd.

142 ITR 536High Court1983#9390 most cited

What is CIT v. Jatia Manufacturing Investment Co (P) Ltd. authority for?

Under the mercantile system of accounting, a liability arises when an amount becomes due, even if not yet paid. However, if negotiations for waiver of a debt occur before the end of the previous year, the accrual of that debt can be stopped for that year.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2019 to 2020.

Also referred to as

CIT v. Jatia Manufacturing Investment Co · mercantile system of accounting · accrual of liability · waiver of interest · allowable expenses · previous year · CIT v. Jatia Manufacturing Investment Co (1983) 142 ITR 536

Judgments citing CIT v. Jatia Manufacturing Investment Co (P) Ltd.

The Travancore Cochin Chemicals Limited, Udyogamandal vs. DCIT, Ernakulam

In the result, appeal of the assessee is allowed

ITA 673/COCH/1995[1992-93]Status: DisposedITAT Cochin22 Jan 2020AY 1992-93

Bench: S/Shri N.V. Vasudevan, Vp & Chandra Poojari, Am Assessment Year: 1992-93

…ng assessment on the assessee-company for the assessment year 1976-77, notwithstanding that no provision for such liability was made in the books of the assessee-company for the calendar year 1975. 6) CIT v. Jatia Manufacturing Investment Co. Pvt. Ltd. (1983) 142 ITR 536 (Cal.) wherein it was held that under the mercantile system of accounting liability arises when an amount becomes due and not when it is actually paid. But whether in a particular transaction the amount had become due or not would depend upon the nature of the transaction or dealings between the parties. If before the end of a previous year negot…

The Deputy Commissioner of Income Tax, Circle-3, Guwahati vs. M/S. Numaligarh Refinery Ltd., Guwahati

In the result, appeals of the assessee in I

ITA 278/GTY/2018[2015-16]Status: DisposedITAT Guwahati13 Sept 2019AY 2015-16

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

Deputy Commissioner of Income Tax, Circle - 03, Guwahati vs. Numaligarh Refinery Limited, Guwahati

In the result, appeals of the assessee in I

ITA 28/GTY/2017[2013-14]Status: DisposedITAT Guwahati13 Sept 2019AY 2013-14

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

Numaligarh Refinery Limited, Guwahati vs. Deputy Commissioner of Income Tax, Circle - 03, Guwahati

In the result, appeals of the assessee in I

ITA 27/GTY/2017[2013-14]Status: DisposedITAT Guwahati13 Sept 2019AY 2013-14

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

The Deputy Commissioner of Income Tax, Circle-3, Guwahati vs. M/S. Numaligarh Refinery Ltd., Guwahati

In the result, appeals of the assessee in I

ITA 98/GTY/2016[2012-13]Status: DisposedITAT Guwahati13 Sept 2019AY 2012-13

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

The Deputy Commissioner of Income Tax, Circle-3, Guwahati vs. M/S. Numaligarh Refinery Ltd., Guwahati

In the result, appeals of the assessee in I

ITA 97/GTY/2016[2011-12]Status: DisposedITAT Guwahati13 Sept 2019AY 2011-12

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 90/GTY/2016[2012-13]Status: DisposedITAT Guwahati13 Sept 2019AY 2012-13

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 89/GTY/2016[2010-11]Status: DisposedITAT Guwahati13 Sept 2019AY 2010-11

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 8/GTY/2014[2010-11]Status: DisposedITAT Guwahati13 Sept 2019AY 2010-11

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 7/GTY/2014[2009-10]Status: DisposedITAT Guwahati13 Sept 2019AY 2009-10

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 5/GTY/2014[2007-08]Status: DisposedITAT Guwahati13 Sept 2019AY 2007-08

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…in the later previous years, cannot be disallowed as deduction merely on the basis that the accounts are maintained on mercantile basis and that it related to a transaction of the previous year.In case of CIT V Jatia Manufacturing Investment Co (P) Ltd (1983) 142 ITR 536 (Cal) it is held that liability to pay interest to creditors having arisen or accrued to the assessee only on the final rejection of its request for waiver of interest in the previous year relevant year to assessment year 1970-71, the interest was an allowable expenses for assessment year 1970-71. In CIT V Khaitan Chemicals & Fertilizers Limited…

CIT v. Jatia Manufacturing Investment Co (P) Ltd. (142 ITR 536) — Cited in 11 Judgments | BharatTax