CIT v. Mangal Tirth Estates Ltd.

303 ITR 366High Court2008#8963 most cited

What is CIT v. Mangal Tirth Estates Ltd. authority for?

Expenditure incurred by a real estate developer under a development agreement, such as for air conditioning, car parking, advertisement, sales promotion, and legal charges, is considered a business expenditure deductible from income.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2010 to 2024.

Also referred to as

CIT v. Mangal Tirth Estates Ltd. · 303 ITR 366 · business expenditure · real estate developer · percentage completion method · development agreement · advertisement · sales promotion · legal charges · commercial expediency

Sections most often in play

Section 143(3)Section 144CSection 156Section 234ASection 234BSection 271(1)(c)

Issues it is cited on

section 10(2)(xv)section 10(2)legal expensesinterest under section 201(1a)percentage completion methodsection 199business connectionrule of consistencysection 201(1a)section 260commercial expediencyrevenue expenditure

Judgments citing CIT v. Mangal Tirth Estates Ltd.

The Commissioner of Income Tax III vs. M/S. Savijana Sea Foods Pvt. Ltd

ITTA/55/2010HC Telangana20 Dec 2024

Bench: J SREENIVAS RAO,ALOK ARADHE

Assotech Moonshine Urban Developers Pvt. Ltd., Noida vs. ACIT, Circle- 3(2), New Delhi

In the result, appeal of the assessee is allowed

ITA 366/DEL/2019[2014-15]Status: DisposedITAT Delhi21 Feb 2024AY 2014-15

Bench: Shri Shamim Yahya & Ms. Astha Chandraasstt. Year: 2014-15

For Appellant: Ms. Rano Jain, AdvocateFor Respondent: Shri Zafarul Haque Tanweer, CIT DR
Section 143(3)Section 144CSection 156Section 234ASection 271(1)(c)

…ar. 7. The Ld. AR relied on the decision of Hon’ble Delhi High Court in CIT vs. Somnath Buildtech Pvt. Ltd. in ITA No. 494/2018 dated 13.10.2022; Gopal Das Estate and Housing Pvt. Ltd. vs. CIT (2019) 412 ITR 489 (Del); CIT vs. Mangal Tirth Estate Ltd. (2008) 303 ITR 366 (Mad) and Tribunal’s decision in PCIT vs. Puma Realtors Pvt. Ltd. (ITA No. 488/2019) dated 13.05.2019 (Del). 8. The Ld. CIT-DR relied upon the order of the Ld. AO duly approved by the Hon’ble DRP. 9. We have carefully considered the rival submissions and perused the records. The facts are not in dispute. The assessee is real estate developer an…

Gopal Das Estates & Housing Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed for

ITA 2576/DEL/2015[2011-12]Status: DisposedITAT Delhi04 Feb 2022AY 2011-12

Bench: Shri G.S.Pannu & Shri Kul Bharat

Section 143(3)Section 14ASection 23

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “C” BENCH: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE SHRI G.S.PANNU, PRESIDENT & SHRI KUL BHARAT, JUDICIAL MEMBER ITA Nos.2576/Del/2015 & 2523/Del/2017 [Assessment Years : 2011-12 & 2012-13] Gopal Das Estates & Housing Pvt. Ltd. vs DCIT 16th Floor, Dr. Gopal Das Bhawan, Company Circle 10(1) 28, Barakhamba Road New Delhi New Delhi-110001. PAN-AAACG0072F APPELLANT RESPONDENT [Assessment Year : 2011-12] vs DCIT Gopal Das Estates & Housing Pvt. Ltd. Circle-10(1) 16th Floor, Dr. Gopal Das Bhawan, 28, New Delhi Barakhamba Road, New Delhi PAN-AAACG0072F APPELLANT RESPONDE…

DCIT Circle 15(3)(2), Mumbai vs. M/S Shivaami Clound Services Pvt Ltd., Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

ITA 2599/MUM/2019[2014-15]Status: DisposedITAT Mumbai30 Jun 2021AY 2014-15
For Appellant: Shri Himanshu GandhiFor Respondent: Shri T. S. Khalsa (DR)
Section 143(2)

…the act of or detriment to the first may not carry out his part of the bargain simultaneously with the first party." 13. She also referred to the judgment of the Jodhpur Bench of the Rajasthan High Court in the case of Suraj Prakash Soni v. Asstt. CIT 120081 303 ITR 366 which is to the same effect. 14. Mr C. S. Aggarwal, learned Senior Counsel for the assessee, on the other hand, submitted that the two authorities below, viz., CIT (A) as well as the Tribunal had considered the facts of the case at greater detail and had rightly opined that till the services were rendered, there was no right to receive the fee. H…

Commissioner of Income Tax VIII vs. Gopal Dass Estates & Housing Pvt.Ltd

Appeals of the Revenue are dismissed

ITA - 742 / 2009HC Delhi20 Mar 2019
Section 260

…he Assessee should be treated as „business expenditure.‟ As explained by the Madras High Court in CIT v. Sarda Binding Works 102 ITR 187 (Mad), it is the point of view of the payer which is relevant. 37. The decision in CIT v. Mangal Tirth Estates Ltd. 303 ITR 366 (Mad) was a case where the Assessee therein had also followed the CCM. It was engaged in the business of construction and sale of a multi-storeyed office cum shopping complex. The Assessee had under the development agreement agreed to provide air conditioning to the shops and to also allot car park space. The Assessee claimed deduction on ad…

Commissioner of Income Tax vs. Gopal Dass Estates & Housing Pvt.Ltd

Appeals of the Revenue are dismissed

ITA - 548 / 2010HC Delhi20 Mar 2019
Section 260

…he Assessee should be treated as „business expenditure.‟ As explained by the Madras High Court in CIT v. Sarda Binding Works 102 ITR 187 (Mad), it is the point of view of the payer which is relevant. 37. The decision in CIT v. Mangal Tirth Estates Ltd. 303 ITR 366 (Mad) was a case where the Assessee therein had also followed the CCM. It was engaged in the business of construction and sale of a multi-storeyed office cum shopping complex. The Assessee had under the development agreement agreed to provide air conditioning to the shops and to also allot car park space. The Assessee claimed deduction on ad…

The Commissioner of Income Tax vs. Gopal Dass Estates & Housing Pvt.Ltd

Appeals of the Revenue are dismissed

ITA - 400 / 2009HC Delhi20 Mar 2019
Section 260

…he Assessee should be treated as „business expenditure.‟ As explained by the Madras High Court in CIT v. Sarda Binding Works 102 ITR 187 (Mad), it is the point of view of the payer which is relevant. 37. The decision in CIT v. Mangal Tirth Estates Ltd. 303 ITR 366 (Mad) was a case where the Assessee therein had also followed the CCM. It was engaged in the business of construction and sale of a multi-storeyed office cum shopping complex. The Assessee had under the development agreement agreed to provide air conditioning to the shops and to also allot car park space. The Assessee claimed deduction on ad…

Commissioner of Income Tax vs. Gopal Dass Estates & Housing Pvt.Ltd

Appeals of the Revenue are dismissed

ITA - 581 / 2010HC Delhi20 Mar 2019
Section 260

…he Assessee should be treated as „business expenditure.‟ As explained by the Madras High Court in CIT v. Sarda Binding Works 102 ITR 187 (Mad), it is the point of view of the payer which is relevant. 37. The decision in CIT v. Mangal Tirth Estates Ltd. 303 ITR 366 (Mad) was a case where the Assessee therein had also followed the CCM. It was engaged in the business of construction and sale of a multi-storeyed office cum shopping complex. The Assessee had under the development agreement agreed to provide air conditioning to the shops and to also allot car park space. The Assessee claimed deduction on ad…

Ashish Builders Pvt. Ltd., Mumbai vs. D.C.I.T. Range 3(1), Mumbai

In the result, order of the CIT(Appeals) does not call for interference

ITA 1566/MUM/2011[2007-2008]Status: DisposedITAT Mumbai23 Sept 2016AY 2007-2008

Bench: Shri D. Karunakara Rao & Shri Saktijit Deyassessment Year: 2008-09 Assessment Year: 2007-08

For Appellant: Shri Pankaj Toprani, A.RFor Respondent: Shri A.B. Koli, D.R

…f Kolkata Bench of ITAT in the case of “M.N. Dastur and Co. Ltd.” ITA No.1918 & 1919 (Calcutta) 1995, 2. Bakshi Vikram Vikas Construction Pvt. Ltd.” 158 taxman 61 (Delhi), 3. Chabra Land and Housing Ltd.” 152 taxman 68. 4. Mangal Teerth Estates Ltd., Madras - 303 ITR 366. All the above decisions are relevant for the proposition that the ITO is not justified in departing from the consistently followed method 16 ITA No.310/M/2012, ITA No.1566/M/2011, ITA No.433/M/2012, ITA No.6658/M/2013 & ITA No.7317/M/2013 M/s. Ashish Builders Pvt. Ltd of accounting followed scientifically by the assessee with respect to a pro…

Commissioner of Income Tax vs. M/s. Kokivenkateswara Reddy AND others

ITTA/210/2003HC Telangana21 Jun 2011

Bench: V.V.S.RAO,RAMESH RANGANATHAN

Deputy Commissioner of Income Tax vs. Curls & Curves India Ltd

ITA-1093/2008HC Delhi29 Oct 2010

…t his part of the bargain simultaneously with the first party." 2010:DHC:5326-DB 13. She also referred to the judgment of the Jodhpur Bench of the Rajasthan High Court in the case of Suraj Prakash Soni Vs. Assistant Commissioner of Income Tax [303 ITR 366] which is to the same effect. 14. Mr. C.S. Aggarwal, learned Senior Counsel for the assessee, on the other hand, submitted that the two authorities below, viz., CIT (A) as well as the Tribunal had considered the facts of the case at greater detail and had rightly opined that till the services were rendered, there was no right to receive…

Deputy Commissioner of Income Tax vs. Curls & Curves India Ltd

ITA - 1093 / 2008HC Delhi29 Oct 2010

…t his part of the bargain simultaneously with the first party." 2010:DHC:5326-DB 13. She also referred to the judgment of the Jodhpur Bench of the Rajasthan High Court in the case of Suraj Prakash Soni Vs. Assistant Commissioner of Income Tax [303 ITR 366] which is to the same effect. 14. Mr. C.S. Aggarwal, learned Senior Counsel for the assessee, on the other hand, submitted that the two authorities below, viz., CIT (A) as well as the Tribunal had considered the facts of the case at greater detail and had rightly opined that till the services were rendered, there was no right to receive…

CIT v. Mangal Tirth Estates Ltd. (303 ITR 366) — Cited in 12 Judgments | BharatTax