CIT v. Madras Refineries Ltd.

266 ITR 170High Court2004#1206 most cited

What is CIT v. Madras Refineries Ltd. authority for?

Expenses incurred for community development, even if not directly linked to business operations, can be considered allowable business expenditure if they foster goodwill and are part of evolving business practices.

94

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2013 to 2026.

Also referred to as

CIT v. Madras Refineries Ltd. · section 37(1) · business expenditure · community development expenses · goodwill · corporate social responsibility · allowable expenses · evolving concept of business

Also reported as

138 Taxmann 261

Sections most often in play

Section 14ASection 37(1)Section 115JBSection 135Section 143(3)Section 154Section 8DSection 143(1)(a)

Issues it is cited on

section 35acsection 36(1)(viia)(c)section 40(a)(1)section 80ia(1)section 80hhesection 35absection 248section 135section 35acsr expendituresection 9(1)(vii)(b)substance over form

Judgments citing CIT v. Madras Refineries Ltd.

Addl. CIT, Special Range-7, New Delhi vs. Rites Ltd., Gurgaon

ITA 6448/DEL/2017[2014-15]Status: DisposedITAT Delhi12 Jan 2021AY 2014-15

Bench: Shri N.K. Billaiya & Shri Kuldip Singh(Through Video Conference)

For Appellant: Shri Satyajeet Goel, CAFor Respondent: Ms. Sushma Singh, CIT DR
Section 14ASection 37

…bligation, is allowable as business expenditure. Merely because an expenditure is in the nature of donation, it does not cease to be an expenditure deductible under s. 37(1)." 9.7 The Commissioner of Income tax had mentioned in his order that "the Apex Court (313 ITR 334 SC) CIT Vs Madras Refineries Ltd., while hearing the allowability of CSR expenses observed that neither the High Court nor the Tribunal concerned had given specific finding to the effect that the said CSR expenditure is allowable as business expenditure ". In the above mentioned case, the Apex court has not given any decision on merits of the cas…

Addl. CIT, Special Range-7, New Delhi vs. Rites Ltd., Gurgaon

ITA 6447/DEL/2017[2013-14]Status: DisposedITAT Delhi12 Jan 2021AY 2013-14

Bench: Shri N.K. Billaiya & Shri Kuldip Singh(Through Video Conference)

For Appellant: Shri Satyajeet Goel, CAFor Respondent: Ms. Sushma Singh, CIT DR
Section 14ASection 37

…bligation, is allowable as business expenditure. Merely because an expenditure is in the nature of donation, it does not cease to be an expenditure deductible under s. 37(1)." 9.7 The Commissioner of Income tax had mentioned in his order that "the Apex Court (313 ITR 334 SC) CIT Vs Madras Refineries Ltd., while hearing the allowability of CSR expenses observed that neither the High Court nor the Tribunal concerned had given specific finding to the effect that the said CSR expenditure is allowable as business expenditure ". In the above mentioned case, the Apex court has not given any decision on merits of the cas…

Rungta Mines Ltd., Kolkata vs. Principal CIT - 1, Kolkata

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

ITA 1326/KOL/2018[2013-14]Status: DisposedITAT Kolkata06 Jan 2021AY 2013-14

Bench: Sri J. Sudhakar Reddy & Smt. Madhumita Roy)

Section 143(3)Section 263Section 37(1)

…citizen brings goodwill of the local community as also with the regulatory agencies and society at large, thereby creating an atmosphere in which the business can succeed in a greater measure with the aid of such goodwill (CIT v. Madras Refineries Ltd. [2004]266 ITR 170, Sri Venkata Satyanarayna Rice Mill Contractors Co. v. CIT [1997] 223 ITR 101, Hindustan Petroleum Corporation Ltd Vs DC IT [(2005) 96 ITO 186 (Bom)] (iii) The amendment in the scheme of Section 37(1), which has been introduced with effect from 1st April 2015, cannot be construed as to disadvantage to the assessee in the period prior to this amen…

Garden Reach Shipbuilders & Engineers Ltd, Kolkata vs. Princiapal C.I.T., Kolkata - I, Kolkata

In the result, both the appeals of the assessee are allowed

ITA 1100/KOL/2018[2014-15]Status: DisposedITAT Kolkata20 Nov 2020AY 2014-15

Bench: Shri J. Sudhakar Reddy, Hon’Ble & Ms. Madhumita Roy, Hon’Ble] [Through Virtual Court] I.T.A. Nos. 1099 & 1100/Kol/2018 Assessment Year: 2013-14 & 2014-15 M/S. Garden Reach Ship Builders & Engineers Ltd..............................………………..Appellant 43/46, Garden Reach Road, Kolkata – 700 024. [Pan: Aacg 9371 K] Vs. Pr. Commissioner Of Incomes Tax, Kolkata – 1, Kolkata ……………………………Respondent P-7, Chowringhee Square, Kolkata – 700 069. Appearances By: Shri Sanjoy Bhattacharya, Advocate Appearing On Behalf Of The Assessee. Shri Vijay Shankar, Cit Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : November 17, 2020 Date Of Pronouncing The Order November 20, 2020 Order Per J. Sudhakar Reddy: Am Both These Appeals Are Filed By The Assessee & Are Directed Against Separate Orders Of Ld. Principal Commissioner Of Income Tax, Kolkata - 1, Kolkata Passed U/S 263 Of The Act 1961 (‘The Act’) Dated 21.03.2018. As The Issues Arising In Both The Appeals Are Common, For The Sake Of Convenience, They Are Heard Together & Disposed Off By Way Of This Common Order.

Section 143(2)Section 143(3)Section 263Section 37

…bligation, is allowable as business expenditure. Merely because an expenditure is in the nature of donation, it does not cease to be an expenditure deductible under s. 37(1).” 9.7 The Commissioner of Income tax had mentioned in his order that "the Apex Court (313 ITR 334 SC) CIT Vs Madras Refineries Ltd., while hearing the allowability of CSR expenses observed that neither the High Court nor the Tribunal concerned had given specific finding to the effect that the said CSR expenditure is allowable as business expenditure ". In the above mentioned case, the Apex court has not given any decision on merits of the cas…

Garden Reach Shipbuilders & Engineers Ltd, Kolkata vs. Princiapal C.I.T., Kolkata - I, Kolkata

In the result, both the appeals of the assessee are allowed

ITA 1099/KOL/2018[2013-14]Status: DisposedITAT Kolkata20 Nov 2020AY 2013-14

Bench: Shri J. Sudhakar Reddy, Hon’Ble & Ms. Madhumita Roy, Hon’Ble] [Through Virtual Court] I.T.A. Nos. 1099 & 1100/Kol/2018 Assessment Year: 2013-14 & 2014-15 M/S. Garden Reach Ship Builders & Engineers Ltd..............................………………..Appellant 43/46, Garden Reach Road, Kolkata – 700 024. [Pan: Aacg 9371 K] Vs. Pr. Commissioner Of Incomes Tax, Kolkata – 1, Kolkata ……………………………Respondent P-7, Chowringhee Square, Kolkata – 700 069. Appearances By: Shri Sanjoy Bhattacharya, Advocate Appearing On Behalf Of The Assessee. Shri Vijay Shankar, Cit Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : November 17, 2020 Date Of Pronouncing The Order November 20, 2020 Order Per J. Sudhakar Reddy: Am Both These Appeals Are Filed By The Assessee & Are Directed Against Separate Orders Of Ld. Principal Commissioner Of Income Tax, Kolkata - 1, Kolkata Passed U/S 263 Of The Act 1961 (‘The Act’) Dated 21.03.2018. As The Issues Arising In Both The Appeals Are Common, For The Sake Of Convenience, They Are Heard Together & Disposed Off By Way Of This Common Order.

Section 143(2)Section 143(3)Section 263Section 37

…bligation, is allowable as business expenditure. Merely because an expenditure is in the nature of donation, it does not cease to be an expenditure deductible under s. 37(1).” 9.7 The Commissioner of Income tax had mentioned in his order that "the Apex Court (313 ITR 334 SC) CIT Vs Madras Refineries Ltd., while hearing the allowability of CSR expenses observed that neither the High Court nor the Tribunal concerned had given specific finding to the effect that the said CSR expenditure is allowable as business expenditure ". In the above mentioned case, the Apex court has not given any decision on merits of the cas…

DCIT (Ltu), New Delhi vs. M/S. Gail (India) Ltd., New Delhi

Appeal is dismissed

ITA 4642/DEL/2013[1996-97]Status: DisposedITAT Delhi26 Oct 2020AY 1996-97

Bench: Sh. R. K. Panda & Ms Suchitra Kamble

Section 80HSection 80I

…xpenditure is liable to deduction under Section 37(1) of the Act. The Ld. AR relied upon the following decisions: i. Sri Venkata Satyanarayana Rice Mill vs. CIT 223 ITR 101 (SC) ii. CIT vs. D.T.T.D.C. Ltd. 350 ITR 1 (Del.) iii. CIT vs. Madras Refineries Ltd. 266 ITR 170 (Mad.) iv. CIT vs. India Radiator Ltd. 236 ITR 719 (Mad.) v. Gujarat Guardian Ltd. vs. DCIT ITA No. 3214/Del/2013 (Del. ITAT) vi. Airport Authority of India vs. CIT 340 ITR 407 (Del HC) 26. We have heard both the parties and perused all the relevant material available on record. The horticulture expenses on planting of trees, maintenance of lawns…

Gail (India) Ltd., New Delhi vs. DCIT-Ltu Delhi, New Delhi

Appeal is dismissed

ITA 4454/DEL/2013[1996-97]Status: DisposedITAT Delhi26 Oct 2020AY 1996-97

Bench: Sh. R. K. Panda & Ms Suchitra Kamble

Section 80HSection 80I

…xpenditure is liable to deduction under Section 37(1) of the Act. The Ld. AR relied upon the following decisions: i. Sri Venkata Satyanarayana Rice Mill vs. CIT 223 ITR 101 (SC) ii. CIT vs. D.T.T.D.C. Ltd. 350 ITR 1 (Del.) iii. CIT vs. Madras Refineries Ltd. 266 ITR 170 (Mad.) iv. CIT vs. India Radiator Ltd. 236 ITR 719 (Mad.) v. Gujarat Guardian Ltd. vs. DCIT ITA No. 3214/Del/2013 (Del. ITAT) vi. Airport Authority of India vs. CIT 340 ITR 407 (Del HC) 26. We have heard both the parties and perused all the relevant material available on record. The horticulture expenses on planting of trees, maintenance of lawns…

M/S. Rajasthan State Mines & Minerals Ltd., Jaipur vs. Addl.CIT, Range-6, Jaipur

In the result, appeal of the assessee is allowed

ITA 213/JPR/2020[2007-08]Status: DisposedITAT Jaipur04 Aug 2020AY 2007-08
For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri K.C. Gupta (JCIT)

…n’ble Supreme Court in case of Sri Venkata Satyanarayana Rice Mill Contractors Co. vs. CIT, 223 ITR 101 (SC). He has also referred to various decisions on this point including the decision of Hon’ble Madras High Court in case of CIT vs. Madras Refinery Ltd. 266 ITR 170 (Madras) and decisions of this Tribunal dated 25.08.2006 and 31.03.2010 in assessee’s own case for the assessment years 1993-94 and 2006-07 respectively. He has further submitted that a similar disallowance was made in the assessment year 2010-11 which 12 ITA No. 213/JP/2020. Rajasthan State Mines & Minerals Ltd., Jaipur. was deleted by the l…

Hindustan Copper Limited, Kolkata vs. CIT, Ltu - 1, Kolkata

Appeal is allowed

ITA 900/KOL/2018[2013-14]Status: DisposedITAT Kolkata29 Jan 2020AY 2013-14

Bench: Shri S.S.Godara & Dr. A.L. Sainiassessment Year :2013-14 Hindustan Copper Ltd., V/S. Commissioner Of Income Tamra Bhawan, 1, Tax, Ltu-1, Kolkata, Ashutosh Choudhury Aayakar Bhawan Poorva, Avenue, Kolkta-700 019 110, Shanti Pally, [Pan No.Aaach 7409 R] Kolkata-700 0107 .. अपीलाथ" /Appellant ""यथ"/Respondent Shri Sanjay Bhattacharya, Fca अपीलाथ" क" ओर से/By Appellant Shri Ram Bilash Meena, Cit-Dr ""यथ" क" ओर से/By Respondent 24-12-2019 सुनवाई क" तार"ख/Date Of Hearing -01-2020 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per S.S.Godara:- This Assessee’S Appeal For Assessment Year 2013-14 Arises Against The Commissioner Of Income Tax (Ltu)-1, Kolkata’S Order Dated 08.03.2018 Passed In Case F.No.Cit/Ltu/Kol/263/Hcl/2017-18/1128-1132, Involving Proceedings U/S 263 Of The Income Tax Act, 1961; In Short ‘The Act’. Heard Both The Parties. Case File Perused.

Section 115JSection 135Section 263Section 263(1)Section 37

…bligation, is allowable as business expenditure. Merely because an expenditure is in the nature of donation, it does not cease to be an expenditure deductible under s. 37(1).” 9.7 The Commissioner of Income tax had mentioned in his order that "the Apex Court (313 ITR 334 SC) CIT Vs Madras Refineries Ltd., while ITA No.900/Kol/2018 A.Y. 2013-14 Hindustan Copper Ltd. Vs. CIT-LTU-1, Kol. Page 7 hearing the allowability of CSR expenses observed that neither the High Court nor the Tribunal concerned had given specific finding to the effect that the said CSR expenditure is allowable as business expenditure ". In the a…

Nalwa Steel Power Limited, New Delhi vs. DCIT, Circle- 17(2), New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 451/DEL/2019[2014-15]Status: DisposedITAT Delhi10 Oct 2019AY 2014-15

Bench: Shri N.K. Billaiya & Shri Suchitra Kambleassessment Year: 2014-15

Section 144CSection 92BSection 92C

…vernment giving patronage or benefit can be no ground to deny the assessee a deduction of that amount under section 37(1) of the Act when such payment had been made for the purpose of assessee's business. 8. In the case of CIT v. Madras Refineries Ltd. [2004] 266 ITR 170 1, Hon'ble Madras High Court has upheld deductibility of the amount spent by the assessee even on bringing drinking water to locality and in aiding local school. While doing so, Their Lordships observed as follows: The concept of business is not static. It has evolved over a period of time to include within its fold the concrete expression of ca…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2283/CHNY/2018[2014-15]Status: DisposedITAT Chennai25 Sept 2019AY 2014-15

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…ture was incurred in earning dividend income, no expenditure can be disallowed. As regards to the disallowance of CSR expenditure, ld. CIT(A) placing reliance on the decisions of Hon’ble Jurisdictional High Court in the cases of CIT vs. Madras Refineries Ltd, 266 ITR 170, CIT vs. Velumanickam Lodge, 317 ITR 338, Cholan Roadways Corporation ltd vs. CIT, 235 ITR 473 and Amarjothi Pictures vs CIT, 69 ITR 755 and on the analysis of the expenditure incurred on CSR, the ld. CIT(A) directed the Assessing Officer to disallow only 10% of the expenditure incurred in case amounting to ₹1,12,827/-. As regards to the additio…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2282/CHNY/2018[2013-14]Status: DisposedITAT Chennai25 Sept 2019AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…ture was incurred in earning dividend income, no expenditure can be disallowed. As regards to the disallowance of CSR expenditure, ld. CIT(A) placing reliance on the decisions of Hon’ble Jurisdictional High Court in the cases of CIT vs. Madras Refineries Ltd, 266 ITR 170, CIT vs. Velumanickam Lodge, 317 ITR 338, Cholan Roadways Corporation ltd vs. CIT, 235 ITR 473 and Amarjothi Pictures vs CIT, 69 ITR 755 and on the analysis of the expenditure incurred on CSR, the ld. CIT(A) directed the Assessing Officer to disallow only 10% of the expenditure incurred in case amounting to ₹1,12,827/-. As regards to the additio…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2281/CHNY/2018[2012-13]Status: DisposedITAT Chennai25 Sept 2019AY 2012-13

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…ture was incurred in earning dividend income, no expenditure can be disallowed. As regards to the disallowance of CSR expenditure, ld. CIT(A) placing reliance on the decisions of Hon’ble Jurisdictional High Court in the cases of CIT vs. Madras Refineries Ltd, 266 ITR 170, CIT vs. Velumanickam Lodge, 317 ITR 338, Cholan Roadways Corporation ltd vs. CIT, 235 ITR 473 and Amarjothi Pictures vs CIT, 69 ITR 755 and on the analysis of the expenditure incurred on CSR, the ld. CIT(A) directed the Assessing Officer to disallow only 10% of the expenditure incurred in case amounting to ₹1,12,827/-. As regards to the additio…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2280/CHNY/2018[2011-12]Status: DisposedITAT Chennai25 Sept 2019AY 2011-12

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…ture was incurred in earning dividend income, no expenditure can be disallowed. As regards to the disallowance of CSR expenditure, ld. CIT(A) placing reliance on the decisions of Hon’ble Jurisdictional High Court in the cases of CIT vs. Madras Refineries Ltd, 266 ITR 170, CIT vs. Velumanickam Lodge, 317 ITR 338, Cholan Roadways Corporation ltd vs. CIT, 235 ITR 473 and Amarjothi Pictures vs CIT, 69 ITR 755 and on the analysis of the expenditure incurred on CSR, the ld. CIT(A) directed the Assessing Officer to disallow only 10% of the expenditure incurred in case amounting to ₹1,12,827/-. As regards to the additio…

Hero Motocorp Ltd., New Delhi vs. DCIT, Circle- 11(1), New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 1351/DEL/2018[2009-10]Status: DisposedITAT Delhi23 Apr 2019AY 2009-10

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

For Appellant: Amount of Proposed international
Section 115JSection 143(3)Section 144C

…ars 2010-11 and 2011-12. The Ld. AR relied upon the following decisions: Mysore Kirloskar Ltd. vs. CIT: 166 ITR 836 (Kar.) • Mahindra and Mahindra vs. CIT 261 ITR 501 (Bom) • CIT v. India Radiators Ltd.: 236 ITR 719 (Mad.) • CIT v. Madras Refineries Ltd.: 266 ITR 170(Mad) • CIT v. Chennai Petroleum Corpn. Ltd: T.C.(A).No.57 of 2006 (Chennai) • CIT vs Jayendrakumar Hiralal: 327 ITR 147 (Guj) • CIT vs. Karnataka Financial Corporation: 326 ITR 355 (Kar) • Infosys Technologies Ltd. v. JCIT: 109 TTJ (Bang)631 • Hindustan Petroleum Corpn. Ltd. vs. DCIT 96 ITD 186 (Bom.) • Indian Petroleum’s vs. Department of…

M/S Sjvn Ltd. ( Formerly Satluj Jal Vidyut Nigam Limited), Shimla vs. DCIT, Circle, Shimla

ITA 835/CHANDI/2018[2014-15]Status: DisposedITAT Chandigarh28 Mar 2019AY 2014-15
For Appellant: Shri Rajiv Sood, CAFor Respondent: Smt.Mona Mohanti, CIT DR
Section 250(6)

…vernment giving patronage or benefit can be no ground to deny the assessce a deduction of that amount under section 37(1) of the Act when such payment had been made for the purpose of assessee's business. 8. In the case of CIT v. Madras Refineries Ltd. [2004] 266 ITR 170 1, Hon'ble Madras High Court has upheld deducibility of the amount spent by the assessee even on bringing drinking water to locality and in aiding local school. While doing so, Their Lordships observed as follows: The concept of business is not static. It hs evolved over a period of time to include within its fold the concrete expression of care…

M/S Sjvn Ltd. ( Formerly Satluj Jal Vidyut Nigam Limited), Shimla vs. DCIT, Circle, Shimla

ITA 834/CHANDI/2018[2013-14]Status: DisposedITAT Chandigarh28 Mar 2019AY 2013-14
For Appellant: Shri Rajiv Sood, CAFor Respondent: Smt.Mona Mohanti, CIT DR
Section 250(6)

…vernment giving patronage or benefit can be no ground to deny the assessce a deduction of that amount under section 37(1) of the Act when such payment had been made for the purpose of assessee's business. 8. In the case of CIT v. Madras Refineries Ltd. [2004] 266 ITR 170 1, Hon'ble Madras High Court has upheld deducibility of the amount spent by the assessee even on bringing drinking water to locality and in aiding local school. While doing so, Their Lordships observed as follows: The concept of business is not static. It hs evolved over a period of time to include within its fold the concrete expression of care…

ACIT, Circle, Shimla vs. M/S Satluj Jal Vidyut Nigam Limited, Shimla

ITA 827/CHANDI/2018[2014-15]Status: DisposedITAT Chandigarh28 Mar 2019AY 2014-15
For Appellant: Shri Rajiv Sood, CAFor Respondent: Smt.Mona Mohanti, CIT DR
Section 250(6)

…vernment giving patronage or benefit can be no ground to deny the assessce a deduction of that amount under section 37(1) of the Act when such payment had been made for the purpose of assessee's business. 8. In the case of CIT v. Madras Refineries Ltd. [2004] 266 ITR 170 1, Hon'ble Madras High Court has upheld deducibility of the amount spent by the assessee even on bringing drinking water to locality and in aiding local school. While doing so, Their Lordships observed as follows: The concept of business is not static. It hs evolved over a period of time to include within its fold the concrete expression of care…

M/S.Kerala State Industrial Dev Corpn Ltd, Trivandrum vs. The ACIT, Trivandrum

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

ITA 142/COCH/2017[2012-13]Status: DisposedITAT Cochin07 Feb 2019AY 2012-13

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 135Section 263Section 37Section 37(1)

…to in section 135 of the Companies Act, 2013 shall not be deemed to be an expenditure incurred by the assessee for the purpose of business or profession. 2.2 The CIT(A) relied on the judgment of the Apex Court in the case of CIT Vs Madras Refineries Ltd. (313 ITR 334), wherein it was observed that neither the High Court nor the Tribunal concerned had given specific finding to the effect that the said CSR expenditure is allowable as business expenditure. In this case also, since there is no specific reason to show that the CSR expense claimed was incurred wholly and exclusively for the purpose of business of…

Nalwa Steel Power Limited, New Delhi vs. ACIT, Circle- 17(2), New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 7176/DEL/2017[2013-14]Status: DisposedITAT Delhi31 Dec 2018AY 2013-14

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 143(3)Section 144CSection 144C(5)Section 80ISection 92D

…ernment giving patronage or benefit can be no ground to deny the assessee a deduction of that amount under section 37(1) of the Act when such payment had been made for the purpose of assessee's business. 8. In the case of CIT v. Madras Refineries Ltd. [2004] 266 ITR 170 1, Hon'ble Madras High Court has upheld deductibility of the amount spent by the assessee even on bringing drinking water to locality and in aiding local school. While doing so, Their Lordships observed as follows: The concept of business is not static. It has evolved over a period of time to include within its fold the concrete expression of ca…