CIT v. M Ethurajan

273 ITR 95High Court2005#10446 most cited

What is CIT v. M Ethurajan authority for?

Expenditure incurred for the purpose of earning income is deductible, even if no income is ultimately earned, provided there is a nexus between the expenditure and the potential income. Deduction is allowed under Section 57(iii) if there is a proven link between the expenditure and the income sought to be earned.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2017 to 2024.

Also referred to as

CIT v. M Ethurajan · 273 ITR 95 · Section 57(iii) · deduction of expenditure · income from other sources · nexus between expenditure and income · dividend income · interest income · director's remuneration

Judgments citing CIT v. M Ethurajan

Ravindra Madanlal Khandelwal, Akola vs. DCIT/ACIT Circle, Akola

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 375/NAG/2024[2018-19]Status: DisposedITAT Nagpur18 Nov 2024AY 2018-19

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Mahavir AtalFor Respondent: Shri Sandipkumar Salunke
Section 142(1)Section 143Section 144BSection 68

…8) IX SITC 673 (All): CIT vs. Rampur Tirnber&Turney Co. Ltd. (1981) 129 ITR 58 (All.) : CIT vs. Administrator General of Madras (1998) 142 Taxation 85 (Mad)). A similar view was also taken by the Hon'ble Madras High Court in the case of "CIT vs. M Ethurajan" (273 ITR 95) (Mad).) 4.6 In the assessee‟s case, assessee has made an investment in a related company, and the resultant in a form of a dividend income, interest income or directors remuneration fall within the head of income from other sources. The courts have time and again held that it is immaterial whether the assessee has made profit out of such expendit…

DCIT Central 2(1), Chennai vs. M/S Agni Estates&Foundation Pvt.Ltd, Chennai

The appeals stand dismissed

ITA 356/CHNY/2023[2014-15]Status: DisposedITAT Chennai20 Oct 2023AY 2014-15

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.355/Chny/2023 (िनधा"रण वष" / Assessment Year: 2013-14) & आयकरअपील सं./ Ita No.356/Chny/2023 (िनधा"रण वष" / Assessment Year: 2014-15) Dcit M/S. Agni Estates & Foundations Pvt.Ltd, बनाम/ Central Circle-2(1) 76, Temple Towers, North Mada Street, Vs. Chennai-34. Mylapore, Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaca-7990-C (अपीलाथ"/Appellant) : (!"थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri D. Hema Bhupal (Jcit)- Ld. Dr !"थ"कीओरसे/Respondent By : Shri R. Vijayaraghavan (Advocate)-Ld.Ar सुनवाईकीतारीख/Date Of Hearing : 11-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 20-10-2023 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Revenue For Assessment Years (Ay) 2013-14 & 2014-15 Arises Out Of Common Order Passed By Learned Commissioner Of Income Tax (Appeals)-19, Chennai, [Cit(A)] On 31.01.2023 In The Matter Of Separate Assessments Framed By The Ld. Assessing Officer [Ao] U/S 143(3) Of The Act. The Facts As Well As Issues Are Common. The Grounds Raised By Revenue In Ay 2013-14 Read As Under:-

For Appellant: Shri D. Hema Bhupal (JCIT)- Ld. DRFor Respondent: Shri R. Vijayaraghavan (Advocate)-Ld.AR
Section 143(3)Section 36(1)(iii)Section 37(1)

…आयकर अपीलीय अिधकरण “बी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी वी. दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.355/Chny/2023 (िनधा"रण वष" / Assessment Year: 2013-14) & आयकरअपील सं./ ITA No.356/Chny/2023 (िनधा"रण वष" / Assessment Year: 2014-15) DCIT M/s. Agni Estates & Foundations Pvt.Ltd, बनाम/ Central Circle-2(1) 76, Temple Towers, North Mada Street, Vs. Chennai-34. Mylapore, Chennai-600 004. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AAACA-7990-C (अपीला…

DCIT Central 2(1), Chennai vs. M/S Agni Estates&Foundation Pvt.Ltd, Chennai

The appeals stand dismissed

ITA 355/CHNY/2023[2013-14]Status: DisposedITAT Chennai20 Oct 2023AY 2013-14

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.355/Chny/2023 (िनधा"रण वष" / Assessment Year: 2013-14) & आयकरअपील सं./ Ita No.356/Chny/2023 (िनधा"रण वष" / Assessment Year: 2014-15) Dcit M/S. Agni Estates & Foundations Pvt.Ltd, बनाम/ Central Circle-2(1) 76, Temple Towers, North Mada Street, Vs. Chennai-34. Mylapore, Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaca-7990-C (अपीलाथ"/Appellant) : (!"थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri D. Hema Bhupal (Jcit)- Ld. Dr !"थ"कीओरसे/Respondent By : Shri R. Vijayaraghavan (Advocate)-Ld.Ar सुनवाईकीतारीख/Date Of Hearing : 11-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 20-10-2023 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Revenue For Assessment Years (Ay) 2013-14 & 2014-15 Arises Out Of Common Order Passed By Learned Commissioner Of Income Tax (Appeals)-19, Chennai, [Cit(A)] On 31.01.2023 In The Matter Of Separate Assessments Framed By The Ld. Assessing Officer [Ao] U/S 143(3) Of The Act. The Facts As Well As Issues Are Common. The Grounds Raised By Revenue In Ay 2013-14 Read As Under:-

For Appellant: Shri D. Hema Bhupal (JCIT)- Ld. DRFor Respondent: Shri R. Vijayaraghavan (Advocate)-Ld.AR
Section 143(3)Section 36(1)(iii)Section 37(1)

…आयकर अपीलीय अिधकरण “बी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी वी. दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.355/Chny/2023 (िनधा"रण वष" / Assessment Year: 2013-14) & आयकरअपील सं./ ITA No.356/Chny/2023 (िनधा"रण वष" / Assessment Year: 2014-15) DCIT M/s. Agni Estates & Foundations Pvt.Ltd, बनाम/ Central Circle-2(1) 76, Temple Towers, North Mada Street, Vs. Chennai-34. Mylapore, Chennai-600 004. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AAACA-7990-C (अपीला…

M/S. Safina Hotels Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 6(1)(1), Bangalore

In the result, the appeal of the assessee is allowed

ITA 2512/BANG/2019[2016-17]Status: DisposedITAT Bangalore09 Nov 2020AY 2016-17

Bench: Shri N.V. Vasudevan & Shri Chandra Poojarim/S. Safina Hotels Pvt. Ltd., 84/85, Safina Plaza, Infantry Road, Bangalore-560 001 ….Appellant Pan Aaccs 5146G Vs. Dy. Commissioner Of Income Tax, Circle 6(1)(1), Bangalore. ……Respondent. Assessee By: Shri Tata Krishna, Advocate. Revenue By: Shri Kannan Narayanan, Jcit(D.R)

For Appellant: Shri Tata Krishna, AdvocateFor Respondent: Shri Kannan Narayanan, JCIT(D.R)
Section 143(2)Section 143(3)Section 32Section 37

…7] 391 ITR 256 (Punjab 8s Haryana) • CIT v. EKL Appliances Ltd. [2012] 345 ITR 241 (Delhi) • CIT v. Darashaw & Co. (P.) Ltd [2014] 226 Taxman 193 (Bombay) (MAG.) • CIT v. Ballarpur Industries Ltd. [2017] 85 taxmann.com 13 (Bombay) • CIT v. M. Ethurajan [2005] 273 ITR 95 (Madras) • CIT v. Aspentech India (P.) Ltd. [2010] 187 Taxman 25 (Delhi), • ADCIT v. Rajasthan Spg. & Wvg. Mills Ltd. [2005] 274 ITR 465 (Rajasthan) • CIT v. Darashaw & Co. (P.) Ltd. [2014] 226 Taxman 193 (Bombay)(MAG.) • Appa Rao v. CIT [ 1962] 46 ITR 511 (Mad) • Mohamed Ghouse v. CIT [ 1963] 49 ITR 127 (Mad) • Ormerods (India) Private Ltd. v. C…

Ravi Mohan Gehi, Mumbai vs. DCIT Cen Cir 40, Mumbai

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

ITA 6238/MUM/2016[2011-12]Status: DisposedITAT Mumbai16 Sept 2020AY 2011-12

Bench: Shri S. Rifaur Rahman, Am & Shri Ram Lal Negi, Jm आयकरअपीलसं./ I.T.A. No. 6238/Mum/2016 (निर्धारणवर्ा / Assessment Year: 2011-12) Dcit Cen Cir 40, Ravi Mohan Gehi, Piramal Chambers B/6, Navkar Chambers, बिधम/ Mumbai Andheri Kurla Road, Vs. Pin- Andheri (E), Mumbai-400 059 स्थायीलेखासं./जीआइआरसं./Pan No. Aeppg1674M (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant : Shri Pradip Kanasi, Ar By प्रत्यथीकीओरसे/Respondentby : Shri Michael, Dr Virtual Date Of Hearing 29.07.2020 : Date Of Pronouncement 16.09.2020 :

For Appellant: Shri Pradip Kanasi, AR byFor Respondent: Shri Michael, DR
Section 143(1)Section 143(2)Section 14ASection 153ASection 234BSection 57

…interest should at least be given against the interest income earned on fixed deposits. The appellant relies on the following judgements: i) Rajendra prasad NIody, 115 I'M 519(SC) ii) Raj Kuinari Agarwal 47 taxmann.com 88 (Agra-Trib) iii) CIT v M. Entburajan, 273 ITR 95 (Mad.) xii. Without prejudice, it is submitted that only interest income is taxable and in computing the said income the interest paid should be allowed to be deducted against the interest received more so when the appellant has been maintaining the common account for Interest. Attention is invited to the Supreme Court judgement in the case of ACG…

Shri Kailash Chand Soni C/O- S.L. Poddar & Company E-3A, Kanti Chandra Raod, Bani Park, Jaipur vs. ACIT Circle-5, Jaipur, Circle-5

In the result, this ground raised by the assessee is allowed

ITA 960/JPR/2019[2014-15]Status: DisposedITAT Jaipur01 Oct 2019AY 2014-15

Bench: Or At The Time Of Hearing.”

For Appellant: Sh. S. L. Poddar (Adv.)For Respondent: Sh. Rajendra Singh (JCIT)
Section 143(3)Section 57

…vs. 10 Shri Kailash Chand Soni, Jaipur Vs. ACIT, Jaipur Darashaw& Co. Pvt. Ltd." and judgment of Hon'ble Madras High Court in the case of "CIT vs. M Ethurayan". A similar view is taken by the Hon'ble Madras High Court in the case of "CIT vs. M Ethurajan" (273 ITR 95 (Mad) In the present case also the assessee has provided the learned assessing officer with the bank statements in which it is clearly visible that the funds raised from the unsecured loan taken from various parties is utilized for lending money to various parties. It means that the interest paid on unsecured loans is expended wholly and exclusive…

Pratosh Kumar Sharma, Ghaziabad vs. DCIT, Circle- 2, Ghaziabad

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 1383/DEL/2018[2013-14]Status: DisposedITAT Delhi25 Sept 2019AY 2013-14

Bench: Shri R.K. Pandaassessment Year: 2013-14 Pratosh Kumar Sharma, Vs. Dcit, 225, Sector-9, Raj Nagar, Circle-2, Ghaziabad, Ghaziabad. Uttar Pradesh. Pan: Aebps5464B (Appellant) (Respondent) Assessee By : Shri R.K. Mehra, Ca Revenue By : Shri S.L. Anuragi, Sr.Dr Date Of Hearing : 29.07.2019 Date Of Pronouncement : 25.09.2019 Order

For Appellant: Shri R.K. Mehra, CAFor Respondent: Shri S.L. Anuragi, Sr.DR
Section 57

…tified. He submitted that when income is not being earned, the expenses cannot be disallowed. For the above proposition he relied on the decision in the case of CIT vs. Sanghi Finance and Investment Ltd. (2005) 272 ITR 553 (MP) and CIT vs. M. Ethurajan (2005) 273 ITR 95 (Mad). Referring to computation of total income, copy of which is filed at page 2 of the paper book, the ld. counsel submitted that the assessee has earned interest income of Rs.11,48,507/-. Referring to page 27 of the paper book, he drew the attention of the Bench to the details of the interest income from NCR Infrahomes Pvt. Ltd. and NCR Fashion…

Commissioner of Income Tax vs. M/S Virat Investment and Merca

ITA/37/2005HC Delhi19 Jan 2017

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

Section 143Section 57

…mencement in the stream of expenditure, i.e., 1992-93. In these circumstances, for the later years, there could have been no question for different treatment. Counsel relied upon the judgment of the Madras High Court reported as CIT v. M Ethurajan (2005) 273 ITR 95 (Mad.); CIT v. Model Manufacturing Company, (1990) 122 ITR 767 (Cal.) and India Cements Ltd. v. CIT, (1966) 60 ITR 52 (SC). 7. In the present case, shorn of complexities which followed the transaction, LIC Mutual Funds financed the assessee’s acquisition of the debentures which it invested in. No doubt, in the first instance, the LIC Mutua…

Commissioner of Income Tax VI vs. M/S Virat Investment & Mercant

ITA/636/2004HC Delhi19 Jan 2017

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

Section 143Section 57

…mencement in the stream of expenditure, i.e., 1992-93. In these circumstances, for the later years, there could have been no question for different treatment. Counsel relied upon the judgment of the Madras High Court reported as CIT v. M Ethurajan (2005) 273 ITR 95 (Mad.); CIT v. Model Manufacturing Company, (1990) 122 ITR 767 (Cal.) and India Cements Ltd. v. CIT, (1966) 60 ITR 52 (SC). 7. In the present case, shorn of complexities which followed the transaction, LIC Mutual Funds financed the assessee’s acquisition of the debentures which it invested in. No doubt, in the first instance, the LIC Mutua…

Commissioner of Income Tax VI vs. M/S Virat Investment & Mercant

ITA/709/2004HC Delhi19 Jan 2017

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

Section 143Section 57

…mencement in the stream of expenditure, i.e., 1992-93. In these circumstances, for the later years, there could have been no question for different treatment. Counsel relied upon the judgment of the Madras High Court reported as CIT v. M Ethurajan (2005) 273 ITR 95 (Mad.); CIT v. Model Manufacturing Company, (1990) 122 ITR 767 (Cal.) and India Cements Ltd. v. CIT, (1966) 60 ITR 52 (SC). 7. In the present case, shorn of complexities which followed the transaction, LIC Mutual Funds financed the assessee’s acquisition of the debentures which it invested in. No doubt, in the first instance, the LIC Mutua…