CIT v. Metalising Equipment Co.Pvt.Ltd.

8 DTR 12Reported decision#5169 most cited

What is CIT v. Metalising Equipment Co.Pvt.Ltd. authority for?

Payment of commission for guaranteeing the repayment of a loan is an allowable revenue expense. This is because such a payment is made for the purpose of the business and does not result in the acquisition of a capital asset or enduring advantage.

23

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2019 to 2024.

Also referred to as

CIT v. Metalising Equipment Co.Pvt.Ltd. · 8 DTR 12 · guarantee commission · revenue expense · business expenditure · loan guarantee · allowable deduction

Judgments citing CIT v. Metalising Equipment Co.Pvt.Ltd.

THE DCIT, CIRCLE-1(1), NOW CIRCLE-1(1)(1),, BARODA vs. GUJARAT STATE ELECTRICITY CORPORATION LTD.,, BARODA

In the result, the appeal filed by the Assessee in ITA No

ITA 3164/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad19 Dec 2024AY 2011-12

Bench: DR. BRR Kumar (Vice President), Shri T.R. Senthil Kumar (Judicial Member)

Section 115JSection 143(3)Section 28Section 37Section 43(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: DR. BRR Kumar, Vice President And Shri T.R. Senthil Kumar, Judicial Member ITA Nos: 3164 & 3124/Ahd/2015 Assessment Year: 2011-12 Deputy Commissioner Vs Gujarat State of Income Tax Electricity Circle-1(1), Baroda Corporation Limited, Sardar Patel Vidyut Bhavan, Race Course Circle, Baroda-390007 Gujarat State Deputy Commissioner Electricity Corporation Vs of Income Tax Limited, Circle-1(1), Baroda Sardar Patel Vidyut Bhavan, Race Course Circle, Baroda-390007 PAN: AAACG6864F (Appellant) (Respondent) Revenue Represented: Shri A.P. Singh, CIT-D…

GUJARAT STATE ELECTRICITY CORPORATION LTD.,BARODA vs. THE DY.CIT, CIRCLE-1(1),, BARODA

In the result, the appeal filed by the Assessee in ITA No

ITA 3124/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad19 Dec 2024AY 2011-12

Bench: DR. BRR Kumar (Vice President), Shri T.R. Senthil Kumar (Judicial Member)

Section 115JSection 143(3)Section 28Section 37Section 43(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: DR. BRR Kumar, Vice President And Shri T.R. Senthil Kumar, Judicial Member ITA Nos: 3164 & 3124/Ahd/2015 Assessment Year: 2011-12 Deputy Commissioner Vs Gujarat State of Income Tax Electricity Circle-1(1), Baroda Corporation Limited, Sardar Patel Vidyut Bhavan, Race Course Circle, Baroda-390007 Gujarat State Deputy Commissioner Electricity Corporation Vs of Income Tax Limited, Circle-1(1), Baroda Sardar Patel Vidyut Bhavan, Race Course Circle, Baroda-390007 PAN: AAACG6864F (Appellant) (Respondent) Revenue Represented: Shri A.P. Singh, CIT-D…

GUJARAT URJA VIKAS NIGAM LTD,VADODARA vs. DCIT, CIRECLE-1(1)(1), VADODARA

In the result, the appeal filed by the Assessee is allowed for statistical purpose

ITA 406/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad14 Dec 2022AY 2015-16

Bench: Us.

For Appellant: Shri M.J. Shah, A.RFor Respondent: Shri Atul Pandey, Sr.D.R
Section 115JSection 143(3)Section 14A

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been I.T.A No. 406/Ahd/2019 A.Y. 2015-16 Page No 17 Gujrat Urja Vikas Nigam Ltd. vs. DCIT guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as reve…

THE ACIT, CIRCLE-1(1)(1),, VADODARA vs. GUJARAT ENERGY TRANSMISSION CORPN. LTD.,, VADODARA

In the result, both appeals filed by the assessee are allowed for statistical purposes and both the appeals filed by the Revenue are hereby dismissed

ITA 853/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad24 Aug 2022AY 2014-15
For Appellant: Shri Manish J. Shah, Advocate &For Respondent: Shri A.P. Singh, CIT/DR
Section 143(3)Section 271

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

GUJARAT ENERGY TRANSMISSION CORPN. LTD.,,VADODARA vs. THE DCIT, CIRCLE-1(1),, VADODARA

In the result, both appeals filed by the assessee are allowed for statistical purposes and both the appeals filed by the Revenue are hereby dismissed

ITA 754/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad24 Aug 2022AY 2014-15
For Appellant: Shri Manish J. Shah, Advocate &For Respondent: Shri A.P. Singh, CIT/DR
Section 143(3)Section 271

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

GUJARAT ENERGY TRANSMISSION CORPN. LTD.,,VADODARA vs. THE DCIT, CIRCLE-1(1),, VADODARA

In the result, both appeals filed by the assessee are allowed for statistical purposes and both the appeals filed by the Revenue are hereby dismissed

ITA 753/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad24 Aug 2022AY 2013-14
For Appellant: Shri Manish J. Shah, Advocate &For Respondent: Shri A.P. Singh, CIT/DR
Section 143(3)Section 271

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

THE ACIT, CIRCLE-1(1)(1),, VADODARA vs. GUJARAT ENERGY TRANSMISSION CORPN. LTD.,, VADODARA

In the result, both appeals filed by the assessee are allowed for statistical purposes and both the appeals filed by the Revenue are hereby dismissed

ITA 852/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad24 Aug 2022AY 2013-14
For Appellant: Shri Manish J. Shah, Advocate &For Respondent: Shri A.P. Singh, CIT/DR
Section 143(3)Section 271

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

GUJARAT ENERGY TRANSMISSION CORPN.LTD.,,BARODA vs. THE DY.CIT, CIRCLE-1(1),, BARODA

ITA 2856/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad27 Jul 2022AY 2011-12

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 234BSection 271(1)(c)Section 43(1)

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

GUJARAT ENERGY TRANSMISSION CORPN.LTD.,,BARODA vs. THE DY.CIT, CIRCLE-1(1),, BARODA

ITA 2855/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad27 Jul 2022AY 2010-11

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 234BSection 271(1)(c)Section 43(1)

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

THE DCIT, CIRCLE-1(1), NOW CIRCLE-1(1)(1),, VADODARA vs. GUJARAT ENERGY TRANSMISSION CORPN. LTD.,, VADODARA

ITA 2791/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad27 Jul 2022AY 2011-12

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 234BSection 271(1)(c)Section 43(1)

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

THE DCIT, CIRCLE-1(1), NOW CIRCLE-1(1)(1),, VADODARA vs. GUJARAT ENERGY TRANSMISSION CORPN. LTD.,, VADODARA

ITA 2790/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad27 Jul 2022AY 2010-11

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 234BSection 271(1)(c)Section 43(1)

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

THE ACIT, CIRCLE-1(1)(1),, VADODARA vs. DAKSHIN GUJARAT VIJ COMPANY LTD.,, VADODARA

ITA 618/AHD/2018[2011-12]Status: DisposedITAT Ahmedabad22 Jul 2022AY 2011-12

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 271(1)(c)

…respect of loans taken from the bank. In the case of Himalaya Machinery Pvt. Ltd, (ITA No. 738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt. 5.6.2009, following the decision of the Rajasthan High Court in CIT v Metalising Equipment Co. Pvt. Ltd, 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

THE DCIT, CIRCLE-1(1)(1),, VADODARA vs. DAKSHIN GUJARAT VIJ COMPANY LTD.,, VADODARA

ITA 3163/AHD/2015[2012-13]Status: DisposedITAT Ahmedabad22 Jul 2022AY 2012-13

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 271(1)(c)

…respect of loans taken from the bank. In the case of Himalaya Machinery Pvt. Ltd, (ITA No. 738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt. 5.6.2009, following the decision of the Rajasthan High Court in CIT v Metalising Equipment Co. Pvt. Ltd, 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

DAKSHIN GUJARAT VIJ CO. LTD.,,VADODARA vs. THE DY.CIT.,CIRCLE-1(1)(1),, VADODARA

ITA 3123/AHD/2015[2012-13]Status: DisposedITAT Ahmedabad22 Jul 2022AY 2012-13

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 271(1)(c)

…respect of loans taken from the bank. In the case of Himalaya Machinery Pvt. Ltd, (ITA No. 738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt. 5.6.2009, following the decision of the Rajasthan High Court in CIT v Metalising Equipment Co. Pvt. Ltd, 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

DAKSHIN GUJARAT VIJ CO. LTD.,,VADODARA vs. THE DY.CIT.,CIRCLE-1(1),, VADODARA

ITA 3122/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad22 Jul 2022AY 2011-12

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 271(1)(c)

…respect of loans taken from the bank. In the case of Himalaya Machinery Pvt. Ltd, (ITA No. 738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt. 5.6.2009, following the decision of the Rajasthan High Court in CIT v Metalising Equipment Co. Pvt. Ltd, 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

DAKSHIN GUJARAT VIJ CO. LTD.,,VADODARA vs. THE DY.CIT.,CIRCLE-1(1),, VADODARA

ITA 2858/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad22 Jul 2022AY 2010-11

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 271(1)(c)

…respect of loans taken from the bank. In the case of Himalaya Machinery Pvt. Ltd, (ITA No. 738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt. 5.6.2009, following the decision of the Rajasthan High Court in CIT v Metalising Equipment Co. Pvt. Ltd, 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

THE DCIT, CIRCLE-1(1), NOW CIRCLE-1(1)(1),, VADODARA vs. DAKSHIN GUJARAT VIJ COMPANY LTD.,, VADODARA

ITA 2789/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad22 Jul 2022AY 2010-11

Bench: Smt. Annapurna Gupta& Ms. Madhumita Roy

For Appellant: Shri M. K. Patel, AdvocateFor Respondent: Shri A. P. Singh, CIT DR
Section 143(3)Section 271(1)(c)

…respect of loans taken from the bank. In the case of Himalaya Machinery Pvt. Ltd, (ITA No. 738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt. 5.6.2009, following the decision of the Rajasthan High Court in CIT v Metalising Equipment Co. Pvt. Ltd, 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

DAKSHIN GUJARAT VIJ CO. LTD.,,VADODARA vs. THE DY.CIT.,CIRCLE-1(1),, VADODARA

In the result, appeal of the assessee is allowed for statistical purposes

ITA 2857/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad14 Jul 2021AY 2008-09

Bench: Shri Pradip Kumar Kedia & Smt. Madhumita Roy

For Appellant: Shri O. P. Sharma, CIT.DR &For Respondent: Shri L. P. Jain, Sr.D.R

…respect of loans taken from the bank. In the case of Himalaya Machinery Pvt. Ltd, (ITA No. 738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt. 5.6.2009, following the decision of the Rajasthan High Court in CIT v Metalising Equipment Co. Pvt. Ltd, 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

THE DCIT, CIRCLE-1(1), NOW CIRCLE-1(1)(1),, VADODARA vs. DAKSHIN GUJARAT VIJ COMPANY LTD.,, VADODARA

In the result, appeal of the assessee is allowed for statistical purposes

ITA 2788/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad14 Jul 2021AY 2008-09

Bench: Shri Pradip Kumar Kedia & Smt. Madhumita Roy

For Appellant: Shri O. P. Sharma, CIT.DR &For Respondent: Shri L. P. Jain, Sr.D.R

…respect of loans taken from the bank. In the case of Himalaya Machinery Pvt. Ltd, (ITA No. 738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt. 5.6.2009, following the decision of the Rajasthan High Court in CIT v Metalising Equipment Co. Pvt. Ltd, 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

THE DCIT, CIRCLE-1(1), NOW CIRCLE-1(1)(1),, VADODARA vs. GUJARAT ENERGY TRANSMISSION CORPN. LTD.,, VADODARA

In the result, appeal of the Revenue is dismissed

ITA 3356/AHD/2015[2012-13]Status: DisposedITAT Ahmedabad31 Jan 2020AY 2012-13

Bench: Shri Pradip Kumar Kedia & Smt. Madhumita Royआयकर अपील सं./I.T.A. No. 3356/Ahd/2015 ("नधा"रण वष" / Assessment Year : 2012-13)

For Appellant: Shri Ritesh Parmar, CIT.D.R

…in respect of loans taken from the bank. In the case of Himalaya Machinery Pvt.Ltd. (ITA No.738/Ahd/2009) for AY 2006-07, the Tribunal held, vide order dt.5.6.2009, following the decision of the Rajasthan High Court in CIT v. Metalising Equipment Co.Pvt.Ltd., 8 DTR 12, that the payment of commission for guaranteeing repayment of loan was allowable as revenue expense. In the instant case, the loan has been guaranteed by the Government of Gujarat. Hence, quite apart from the other sound reasons for treating the expenditure as revenue, it would be unrealistic to say that the appellant company could derive any undue…

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