CIT v. Naga Hills Tea Co. Ltd.

89 ITR 236Supreme Court of India1973#1228 most cited

What is CIT v. Naga Hills Tea Co. Ltd. authority for?

If a provision of a taxing statute can be reasonably interpreted in two ways, the interpretation favorable to the assessee must be accepted. This fundamental principle ensures fairness when ambiguity exists in tax law.

92

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Naga Hills Tea Co. Ltd. · 89 ITR 236 · Supreme Court 1973 · statutory interpretation tax law · favorable to assessee · two reasonable interpretations · ambiguity in tax statutes · pro-assessee rule

Sections most often in play

Section 153CSection 144Section 143(3)Section 153ASection 115BBESection 132Section 153DSection 292C
Read the full judgment

Issues it is cited on

section 158bdincome tax settlement commissionsection 144asection 269stsection 43(3)section 269sssection 163section 245cspecified authorityblock periodsection 292csection 158b

Judgments citing CIT v. Naga Hills Tea Co. Ltd.

M/S. Gujarat Cricket Association, Ahmedabad vs. The Jt.. Director of Income Tax (Exemption), Ahmedabad

In the result, ITA No. 2841/Ahd/17, i

ITA 3304/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2011-12
Section 11Section 2(15)

…011-12, 2010-11) ITA Nos: 2839, 2840 and 2841/ Ahd/ 2017 (Assessment years: 2012-13, 2013-14 and 2014-15) Page 57 of 151 v. Podar Cement Pvt. Ltd. and Others. 226 ITR 625 (SC), CIT v Vegetable Products Ltd. 88 ITR 192 (SC), and CIT v Naga Hills Tea Co. Ltd. 89 ITR 236, 240 (SC). We are thus urged to follow the division bench decisions in the cases of other cricket associations and hold that the assessee is not hit by proviso to Section 2(15). 28. Shri Vaishnav, learned Commissioner- DR, begins by pointing out how the game of cricket has undergone huge paradigm shift as a sport and as a business. He points o…

M/S. Gujarat Cricket Association, Ahmedabad vs. The Jt.. Director of Income Tax (Exemption), Ahmedabad

In the result, ITA No. 2841/Ahd/17, i

ITA 3303/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2010-11
Section 11Section 2(15)

…011-12, 2010-11) ITA Nos: 2839, 2840 and 2841/ Ahd/ 2017 (Assessment years: 2012-13, 2013-14 and 2014-15) Page 57 of 151 v. Podar Cement Pvt. Ltd. and Others. 226 ITR 625 (SC), CIT v Vegetable Products Ltd. 88 ITR 192 (SC), and CIT v Naga Hills Tea Co. Ltd. 89 ITR 236, 240 (SC). We are thus urged to follow the division bench decisions in the cases of other cricket associations and hold that the assessee is not hit by proviso to Section 2(15). 28. Shri Vaishnav, learned Commissioner- DR, begins by pointing out how the game of cricket has undergone huge paradigm shift as a sport and as a business. He points o…

Baroda Cricket Association, Baroda vs. The Dy.CIT, Circle-5., Baroda

In the result, ITA No. 2841/Ahd/17, i

ITA 337/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2011-12
Section 11Section 2(15)

…011-12, 2010-11) ITA Nos: 2839, 2840 and 2841/ Ahd/ 2017 (Assessment years: 2012-13, 2013-14 and 2014-15) Page 57 of 151 v. Podar Cement Pvt. Ltd. and Others. 226 ITR 625 (SC), CIT v Vegetable Products Ltd. 88 ITR 192 (SC), and CIT v Naga Hills Tea Co. Ltd. 89 ITR 236, 240 (SC). We are thus urged to follow the division bench decisions in the cases of other cricket associations and hold that the assessee is not hit by proviso to Section 2(15). 28. Shri Vaishnav, learned Commissioner- DR, begins by pointing out how the game of cricket has undergone huge paradigm shift as a sport and as a business. He points o…

Baroda Cricket Association, Baroda vs. The Dy.CIT, Circle-5., Baroda

In the result, ITA No. 2841/Ahd/17, i

ITA 336/AHD/2015[2009-10]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2009-10
Section 11Section 2(15)

…011-12, 2010-11) ITA Nos: 2839, 2840 and 2841/ Ahd/ 2017 (Assessment years: 2012-13, 2013-14 and 2014-15) Page 57 of 151 v. Podar Cement Pvt. Ltd. and Others. 226 ITR 625 (SC), CIT v Vegetable Products Ltd. 88 ITR 192 (SC), and CIT v Naga Hills Tea Co. Ltd. 89 ITR 236, 240 (SC). We are thus urged to follow the division bench decisions in the cases of other cricket associations and hold that the assessee is not hit by proviso to Section 2(15). 28. Shri Vaishnav, learned Commissioner- DR, begins by pointing out how the game of cricket has undergone huge paradigm shift as a sport and as a business. He points o…

Baroda Cricket Association, Baroda vs. The Jt. CIT, Range-5, Baroda

In the result, ITA No. 2841/Ahd/17, i

ITA 2957/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2010-11
Section 11Section 2(15)

…011-12, 2010-11) ITA Nos: 2839, 2840 and 2841/ Ahd/ 2017 (Assessment years: 2012-13, 2013-14 and 2014-15) Page 57 of 151 v. Podar Cement Pvt. Ltd. and Others. 226 ITR 625 (SC), CIT v Vegetable Products Ltd. 88 ITR 192 (SC), and CIT v Naga Hills Tea Co. Ltd. 89 ITR 236, 240 (SC). We are thus urged to follow the division bench decisions in the cases of other cricket associations and hold that the assessee is not hit by proviso to Section 2(15). 28. Shri Vaishnav, learned Commissioner- DR, begins by pointing out how the game of cricket has undergone huge paradigm shift as a sport and as a business. He points o…

Gujarat Cricket Association, Ahmedabad vs. The Jt..Director of Income Tax(Exemption), Ahmedabad

In the result, ITA No. 2841/Ahd/17, i

ITA 1257/AHD/2013[2009-10]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2009-10
Section 11Section 2(15)

…011-12, 2010-11) ITA Nos: 2839, 2840 and 2841/ Ahd/ 2017 (Assessment years: 2012-13, 2013-14 and 2014-15) Page 57 of 151 v. Podar Cement Pvt. Ltd. and Others. 226 ITR 625 (SC), CIT v Vegetable Products Ltd. 88 ITR 192 (SC), and CIT v Naga Hills Tea Co. Ltd. 89 ITR 236, 240 (SC). We are thus urged to follow the division bench decisions in the cases of other cricket associations and hold that the assessee is not hit by proviso to Section 2(15). 28. Shri Vaishnav, learned Commissioner- DR, begins by pointing out how the game of cricket has undergone huge paradigm shift as a sport and as a business. He points o…

K.P.R.Mill Limited, Chennai vs. ACIT Corporate Circle 2, Coimbatore

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

ITA 1915/CHNY/2017[2013-14]Status: DisposedITAT Chennai24 Jan 2018AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita No.1915/Mds/2017 "नधा"रण वष" / Assessment Year : 2013-14

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Smt. Ruby George, CIT

…see must be adopted. There are several decision which have taken the same view, in cases with similar facts viz:-. 1. CIT v. Vegetable Products Ltd - 88 ITR 192 (SC) 2. Pradeep J Mehta v. CIT Ahmedabad - 169 Taxman 454 (SC) 3. CIT v. Naga Hills Tea Co. Ltd - 89 ITR 236 (SC) In view of the above discussion, the Calcutta High Court can have no application to the assessee’s case.” 33 I.T.A. No.1915/Mds/17 18. v. DCIT (I.T.A. No.686/Kol/2014 dated 13.09.2017), after following the decision of the Mumbai Bench of this Tribunal, has held as follows:- “14. After coming to the conclusion that the decision of the Hon…

Sh. Sanjay Dalmia, New Delhi vs. DCIT, New Delhi

In the result all the appeal filed by the assessee are dismissed

ITA 3795/DEL/2014[2006-07]Status: DisposedITAT Delhi05 Oct 2017AY 2006-07

Bench: Shri H.S.Sidhu & Shri Prashant Maharishi

For Appellant: Shri Vinod Kumar Bindal, AdvFor Respondent: Shri SS Rana, CIT DR
Section 132Section 142(1)Section 153ASection 271Section 271(1)(b)

…in interpreting a fiscal statute, the Court cannot proceed to make good the deficiencies if there be any. The Court must interpret the statute as it stands and in case of doubt, in a manner favourable to the taxpayer. v) CIT Vs Naga Hills Tea Co. Ltd. (1973) 89 ITR 236 (SC) Where a literal construction would defeat the obvious intention of the legislation and produce a wholly unreasonable result, the court must ―do some violence to the words‖ and so achieve that obvious intention and produce a rational construction. If the interpretation of a fiscal enactment is open to doubt, the construction most beneficial to…

Seth Properties, Mumbai vs. ITO 12(1)(3), Mumbai

Appeal is dismissed

ITA 2991/MUM/2013[2007-08]Status: DisposedITAT Mumbai04 Oct 2017AY 2007-08

Bench: Shri Joginder Singh & Shri G. Manjunatha

…re not chargeable to tax.—Sushil Kumar & Co. vs. Jt. CIT (2003) 81 TTJ (Kol)(SB) 864 : (2004) 88 ITD 35 (Kol)(SB) overruled; CIT vs. Vegetable Products Ltd. 1973 CTR (SC) 177 : (1973) 88 ITR 192 (SC), CIT vs. Naga Hills Tea Co. Ltd. 1973 CTR (SC) 329 : (1973) 89 ITR 236 (SC), CIT vs. Madho Pd. Jatia 1976 CTR (SC) 438 : (1976) 105 ITR 179 (SC), CIT vs. J.K. Hosiery Factory (1986) 52 CTR (SC) 142 : (1986) 159 ITR 85 (SC) and Shashi Gupta vs. LIC 84 Comp Cas 436 applied. (Paras 48 & 49) Conclusion: Mesne profits awarded under decree of Court by way of compensation for wrongful possession of property after terminati…

Addl CIT Large Tax Payer Unit, Mumbai vs. Reliance Industries Ltd, Mumbai

In the result, appeals of the Revenue are dismissed whereas appeals of the assessee are allowed in part in terms indicated hereinabove

ITA 4361/MUM/2012[2007-08]Status: DisposedITAT Mumbai12 Apr 2017AY 2007-08

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Addl. Commissioner Of Vs. M/S. Reliance Industries Ltd.,3Rd Income Tax, Large Tax Floor, Maker Payer Unit, Mumbai Chamber-Iv, 222, Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaacr5055K Appellant) .. Respondent) M/S. Reliance Industries Vs. Addl. Commissioner Of Income Ltd.,3Rd Floor, Maker Tax, Large Tax Payer Unit, Chamber-Iv, 222, Mumbai Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaacr5055K Appellant) .. Respondent) M/S. Reliance Industries Vs. Asst. Commissioner Of Income Ltd.,3Rd Floor, Maker Tax, Large Tax Payer Unit, Chamber-Iv, 222, Mumbai Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaacr5055K Appellant) .. Respondent) Asst. Commissioner Of Vs. M/S. Reliance Industries Ltd.,3Rd Income Tax, Large Tax Floor, Maker Payer Unit, Mumbai Chamber-Iv, 222, Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaacr5055K Appellant) .. Respondent) M/S. Reliance Industries Vs. Asst. Commissioner Of Income Ltd.,3Rd Floor, Maker Tax, Large Tax Payer Unit

Section 143(3)Section 14ASection 195Section 40Section 43BSection 80I

…eral decision which have taken the same view, in cases with similar facts viz:-. 1. CIT v. Vegetable Products Ltd - 88 ITR 192 (SC) 2. Pradeep J Mehta v. CIT Ahmedabad - 169 Taxman 454 (SC) 42 M/s. Reliance Industries Ltd., 3. CIT v. Naga Hills Tea Co. Ltd - 89 ITR 236 (SC) In view of the above discussion, the Calcutta High Court can have no application to the assessee’s case. 56. In view of the above, we respectfully follow the order of the Tribunal in assessee’s own case and confirm the order of CIT(A). 57. In the course of assessment AO made addition u/s.14A r.w.r. 8D. Facts in brief are that during the A.Y.…

Nanji Ganpat Chheda Discreationary Trust, Mumbai vs. ITO 20(2)(4), Mumbai

The appeal of the assessee is allowed for statistical purpose only

ITA 5618/MUM/2015[2012-13]Status: DisposedITAT Mumbai27 Jan 2017AY 2012-13

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2012-13 Nanji Ganpat Chheda Income Tax Officer-20(2)(4), Discretionary Trust, 409, Piramal Chambers, बनाम/ 7, Krashna Mahal, 94, T.V. Lalbaug, Vs. Parmeshwaran Marg, Mumbai-400012 Matunga, Mumbai-400019 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aaaan4192K

Section 164(1)

…st was created by a Will, therefore, there is a merit in the submissions of the assessee. The ld. counsel for the assessee, during hearing also pleaded that if there is an ambiguity, then, in view of the decision from Hon’ble Apex Court in Vegetable Products (89 ITR 236) it has to be decided in favour of the assessee. Without commenting further, I admit the legal ground and send the same to the file of the ld. Commissioner of Income Tax (Appeals) to examine the claim of the assessee and after considering the facts, 4 M/s Nanji Ganpat Chheda Discretionary Trust, decide in accordance with law. Thus, the appeal of…

Al- Ameen Charitable Fund Trust, Bangalore vs. Dy.D.I.T., Bangalore

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

ITA 703/BANG/2015[2006-07]Status: DisposedITAT Bangalore16 Oct 2015AY 2006-07

Bench: Shri Vijay Pal Rao & Shri G.Manjunathaal-Ameen Charitable Fund Trust, No.3, Miller Tank Road, Cunningham Road, Bangalore-560052. … Appellant Pan: Aaata 2729E Vs. Deputy Director Of Income-Tax(Exemptions), Circle 17(1), Bangalore. … Respondent

For Appellant: Shri Gurumurthy, AdvocateFor Respondent: Shri P.K.Srihari, Addl.CIT(DR)
Section 1Section 10Section 11(1)(a)

…169 ITR 564 15) The learned CIT(A) erred in not appreciating that even in case there is conflict of decisions, the decision favourable to the assessee must be followed as laid down by the Supreme Court in the case of (a) CIT Vs. Naga Hills Tea Co. Ltd.(1973) 89 ITR 236 (SC) and (b) CIT Vs. Vegetable Products(1973) 88 ITR 192 (SC). 16) The learned CIT(A) erred in following the letter of the Board which was allegedly received by the Standing Counsel of the Kerala High Court from the Board without noticing that the response was not in the nature of Circular but a communication from the Board in respect of a query t…