CIT v. Nagri Mills Co. Ltd.

33 ITR 681High Court1958#590 most cited

What is CIT v. Nagri Mills Co. Ltd. authority for?

An addition to income is revenue neutral if its tax impact remains the same regardless of the year in which it is assessed. Assessments should not dispute the year of addition when the tax rate and impact are consistent, to avoid unnecessary disputes and potential loss to revenue.

165

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2010 to 2025.

Also referred to as

CIT v. Nagri Mills Co. Ltd. · 33 ITR 681 · revenue neutral · timing difference · pragmatic view · year of addition · impact of tax · loss to revenue · permissible deduction · Income Tax Act

Sections most often in play

Section 143(3)Section 14ASection 36(1)(vii)Section 194HSection 37(1)Section 40(a)(ia)Section 115JBSection 133(6)

Issues it is cited on

section 145(1)section 211section 145(2)project completion methodsection 35dpercentage completion methodsection 21written down valuemercantile system of accountingretracted statementsection 35section 34

Judgments citing CIT v. Nagri Mills Co. Ltd.

Ifci Ltd vs. Commissioner of Income Tax

Appeal is dismissed

ARB.A.-ITA/1931HC Delhi30 Sept 2011
Section 36Section 36(1)(viia)Section 36(1)(viii)

…year 1998-99. Therefore, it was taxed neutral which fact was ignored and for this reason he referred to the judgment of the Bombay High Court in the case of Commissioner of Income Tax, Delhi, Ajmer, Rajasthan and Madhya Bharat Vs. Nagri Mills Co. Ltd., 33 ITR 681. Otherwise, contended the counsel, it amounts to double taxation, which is impermissible having regard to the 2011:DHC:5133-DB ITA No.1931 of 2010 Page 12 of 13 judgments of the Supreme Court in the case of Income Tax Officer, ‘A’ Ward, Lucknow Vs. Bachu Lal Kapoor, 60 ITR 74, Laxmipat Singhania Vs. Commissioner of I…

Ifci Ltd vs. Commissioner of Income Tax

Appeal is dismissed

ITA - 1931 / 2010HC Delhi30 Sept 2011
Section 36Section 36(1)(viia)Section 36(1)(viii)

…year 1998-99. Therefore, it was taxed neutral which fact was ignored and for this reason he referred to the judgment of the Bombay High Court in the case of Commissioner of Income Tax, Delhi, Ajmer, Rajasthan and Madhya Bharat Vs. Nagri Mills Co. Ltd., 33 ITR 681. Otherwise, contended the counsel, it amounts to double taxation, which is impermissible having regard to the 2011:DHC:5132-DB ITA No.1931 of 2010 Page 12 of 13 judgments of the Supreme Court in the case of Income Tax Officer, ‘A’ Ward, Lucknow Vs. Bachu Lal Kapoor, 60 ITR 74, Laxmipat Singhania Vs. Commissioner of I…

Commissioner of Income Tax vs. Triveni Engineering & Industries Ltd

ITA - 346 / 2009HC Delhi29 Nov 2010
Section 37(1)

…llowability of expenditure is, in any case, revenue neutral. 12. We are reminded of the classic observations made by Justice Tendolker in the case of the Commissioner of Income-tax, Delhi, Ajmer, Rajasthan and Madhya Bharat Vs. Nagri Mills Co. Ltd. [33 ITR 681], which reads as under: “We have often wondered why the Income-tax authorities, in a matter such as this where the deduction is obviously a permissible deduction under the Income-tax Act, raise disputes as to the year in which the deduction should be allowed. The question as to the year in which a deduction is allowable may be material when…

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

ITA-1093/2008HC Delhi29 Oct 2010

…aised and much outcry is made for nothing. 27. In a decision rendered about 50 years ago, the Bombay High Court, speaking through Chief Justice Tendolkar in Commissioner of Income Tax, Delhi, Ajmer, Rajasthan and Madhya Pradesh Vs. Nagri Mills Co. Ltd. [33 ITR 681] observed as under: “We have often wondered why the Income tax authorities, in a matter such as this where the deduction is obviously a permissible deduction under the income tax Act, raise disputes as to the year in which the deduction should be allowed. The question as to the year in which a deduction is allowable may be material when the…

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

ITA - 1093 / 2008HC Delhi29 Oct 2010

…aised and much outcry is made for nothing. 27. In a decision rendered about 50 years ago, the Bombay High Court, speaking through Chief Justice Tendolkar in Commissioner of Income Tax, Delhi, Ajmer, Rajasthan and Madhya Pradesh Vs. Nagri Mills Co. Ltd. [33 ITR 681] observed as under: “We have often wondered why the Income tax authorities, in a matter such as this where the deduction is obviously a permissible deduction under the income tax Act, raise disputes as to the year in which the deduction should be allowed. The question as to the year in which a deduction is allowable may be material when the…