CIT v. Nathmal Tolaram

88 ITR 234High Court1973#7095 most cited

What is CIT v. Nathmal Tolaram authority for?

A business expenditure incurred and crystallized in one accounting year, even if relating to transactions in an earlier year, is deductible in the year it is crystallized, provided it is a revenue expenditure.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Nathmal Tolaram · section 10(2)(xv) of 1922 Act · section 37(1) of 1961 Act · sales tax liability · earlier accounting year · deduction · crystallization of dues · revenue expenditure

Sections most often in play

Section 131Section 143(3)Section 144CSection 194CSection 199Section 37Section 40(a)(i)Section 40(a)(ia)

Judgments citing CIT v. Nathmal Tolaram

JCIT, Bangalore vs. M/S Hewlett Packard India Sales P. Ltd., Bangalore

In the result appeal of the ld AO is dismissed and Assessee is partly allowed

ITA 1252/BANG/2015[2010-11]Status: DisposedITAT Bangalore08 Sept 2025AY 2010-11

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year : 2010-11

For Appellant: Shri Percy Pardiwala, Sr. AdvocateFor Respondent: Shri Shivanand Kalakeri, CIT(DR)(ITAT)
Section 143(3)Section 144CSection 40

…on of such dues cannot be disallowed merely on the ground that they relate to the transactions pertaining to earlier accounting year. In this connection it is useful to refer to a decision of the Gauhati High Court in the case of CIT v. Nathmal Tolaram [1973] 88 ITR 234 which was a case arising under the Indian Income-tax Act, 1922, as to the interpretation of section 10(2) (xv) which is corresponding to section 37(1) of the 1961 Act. The question related to the claim of deduction on account of the sales tax liability paid during the year 1957-58, whereas the liability related to the accounting year 1949-50. The…

Hewlett Pakcard India Sales Private Limited, Bangalore vs. JCIT, Bangalore

In the result appeal of the ld AO is dismissed and Assessee is partly allowed

ITA 1245/BANG/2015[2010-11]Status: DisposedITAT Bangalore08 Sept 2025AY 2010-11

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year : 2010-11

For Appellant: Shri Percy Pardiwala, Sr. AdvocateFor Respondent: Shri Shivanand Kalakeri, CIT(DR)(ITAT)
Section 143(3)Section 144CSection 40

…on of such dues cannot be disallowed merely on the ground that they relate to the transactions pertaining to earlier accounting year. In this connection it is useful to refer to a decision of the Gauhati High Court in the case of CIT v. Nathmal Tolaram [1973] 88 ITR 234 which was a case arising under the Indian Income-tax Act, 1922, as to the interpretation of section 10(2) (xv) which is corresponding to section 37(1) of the 1961 Act. The question related to the claim of deduction on account of the sales tax liability paid during the year 1957-58, whereas the liability related to the accounting year 1949-50. The…

The Deputy Commissioner of Income Tax, Circle-3, Guwahati vs. M/S. Numaligarh Refinery Ltd., Guwahati

In the result, appeals of the assessee in I

ITA 278/GTY/2018[2015-16]Status: DisposedITAT Guwahati13 Sept 2019AY 2015-16

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

Deputy Commissioner of Income Tax, Circle - 03, Guwahati vs. Numaligarh Refinery Limited, Guwahati

In the result, appeals of the assessee in I

ITA 28/GTY/2017[2013-14]Status: DisposedITAT Guwahati13 Sept 2019AY 2013-14

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

Numaligarh Refinery Limited, Guwahati vs. Deputy Commissioner of Income Tax, Circle - 03, Guwahati

In the result, appeals of the assessee in I

ITA 27/GTY/2017[2013-14]Status: DisposedITAT Guwahati13 Sept 2019AY 2013-14

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

The Deputy Commissioner of Income Tax, Circle-3, Guwahati vs. M/S. Numaligarh Refinery Ltd., Guwahati

In the result, appeals of the assessee in I

ITA 98/GTY/2016[2012-13]Status: DisposedITAT Guwahati13 Sept 2019AY 2012-13

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

The Deputy Commissioner of Income Tax, Circle-3, Guwahati vs. M/S. Numaligarh Refinery Ltd., Guwahati

In the result, appeals of the assessee in I

ITA 97/GTY/2016[2011-12]Status: DisposedITAT Guwahati13 Sept 2019AY 2011-12

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 90/GTY/2016[2012-13]Status: DisposedITAT Guwahati13 Sept 2019AY 2012-13

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 89/GTY/2016[2010-11]Status: DisposedITAT Guwahati13 Sept 2019AY 2010-11

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 8/GTY/2014[2010-11]Status: DisposedITAT Guwahati13 Sept 2019AY 2010-11

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 7/GTY/2014[2009-10]Status: DisposedITAT Guwahati13 Sept 2019AY 2009-10

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

M/S. Numaligarh Refinery Ltd., Guwahati vs. The Deputy Commissioner of Income Tax, Circle-3, Guwahati

In the result, appeals of the assessee in I

ITA 5/GTY/2014[2007-08]Status: DisposedITAT Guwahati13 Sept 2019AY 2007-08

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…आयकरअपीलीयअिधकरण“गुवाहाटी” "ायपीठगुवाहाटीम"। IN THE INCOME TAX APPELLATE TRIBUNAL “GUWAHATI” BENCH, GUWAHATI "ीएस.एस. गोदारा , "ाियकसद"एवंडॉए.एल.सैनीलेखासद"केसम"। BEFORE SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM Assessee`s Appeals ITA No. 5/GAU/2014- Assessment Year 2007-08 ITA No. 6/GAU/2014- Assessment Year 2008-09 ITA No. 7/GAU/2014- Assessment Year 2009-10 ITA No. 8/GAU/2014- Assessment Year 2010-11 ITA No. 89/GAU/2016-Assessment Year 2011-12 ITA No. 90/GAU/2016-Assessment Year2012-13 ITA No. 27/GAU/2017- Assessment Year 2013-14 Numaligarh Refinery Limited The Dy. Commissioner of Income 122A, G.S. Road, Ch…

M/S Pradhan Engineering Enterprises Pvt. Ltd., Dewas vs. The ACIT 1(1), Ujjain

In the result, the appeal of the Assessee for A

ITA 934/IND/2016[2012-13]Status: DisposedITAT Indore14 Aug 2019AY 2012-13

Bench: Shri Kul Bharat & Shri Manish Borad

Section 115JSection 143(2)Section 143(3)

…5 (6) TMI 180 (Del HC) Hon'ble High Court of Delhi Pradhan Engineering Enterprises Pvt. Ltd. ITANos.933 &934/Ind/2016 ii. Saurashtra Cement & Chemical Industries Ltd. vs. CIT (1995) 213 ITR 523 (Guj) High Court of Gujarat iii. CIT vs. Nathmal Tolaram (1973) 88 ITR 234 Hon'ble Guwahati High Court (Gua) iv. CIT vs. Bharat Carbon and Ribbon Manufacturing Co. Ltd. (199) 239 ITR 505 (Hon'ble Supreme Court) v. CIT vs. Ganga Galss Works (P) Ltd. (2005) 276 ITR 394 (All) vi. Standard Mills Co. Ltd. vs. CIT (1998) 229 ITR 366 (Bom) vii. CIT vs. B& A Plantations and Industries Ltd. (2002) 257 ITR 694 (Gua) viii. CIT vs.…

M/S Pradhan Engineering Enterprises Pvt. Ltd., Dewas vs. The ACIT 1(1), Ujjain

In the result, the appeal of the Assessee for A

ITA 933/IND/2016[2008-09]Status: DisposedITAT Indore14 Aug 2019AY 2008-09

Bench: Shri Kul Bharat & Shri Manish Borad

Section 115JSection 143(2)Section 143(3)

…5 (6) TMI 180 (Del HC) Hon'ble High Court of Delhi Pradhan Engineering Enterprises Pvt. Ltd. ITANos.933 &934/Ind/2016 ii. Saurashtra Cement & Chemical Industries Ltd. vs. CIT (1995) 213 ITR 523 (Guj) High Court of Gujarat iii. CIT vs. Nathmal Tolaram (1973) 88 ITR 234 Hon'ble Guwahati High Court (Gua) iv. CIT vs. Bharat Carbon and Ribbon Manufacturing Co. Ltd. (199) 239 ITR 505 (Hon'ble Supreme Court) v. CIT vs. Ganga Galss Works (P) Ltd. (2005) 276 ITR 394 (All) vi. Standard Mills Co. Ltd. vs. CIT (1998) 229 ITR 366 (Bom) vii. CIT vs. B& A Plantations and Industries Ltd. (2002) 257 ITR 694 (Gua) viii. CIT vs.…

DCIT, New Delhi vs. M/S. Telecommunications Consultants India Ltd., New Delhi

In the result appeal of the revenue is dismissed

ITA 4129/DEL/2011[2005-06]Status: DisposedITAT Delhi27 Oct 2017AY 2005-06

Bench: Shri H.S.Sidhu & Shri Prashant Maharishidcit, Vs. Telecommunications Consultants Circle-16(1), New Delhi India Ltd, Tcil Bhawan, Greater Kailash-I, New Delhi Pan:Aaact0061H (Appellant) (Respondent)

For Appellant: Shri Siyash Sinha, AdvFor Respondent: Shri Shravan Gotru, Sr. DR
Section 143Section 143(3)Section 147Section 148

…on of such dues cannot be disallowed merely on the ground that they relate to the transactions pertaining to earlier accounting year. In this connection it is useful to refer to a decision of the Gauhati High Court in the case of CIT v. Nathmal Tolaram [1973] 88 ITR 234 which was a case arising under the Indian Income-tax Act, 1922, as to the interpretation of section 10(2) (xv) which is corresponding to section 37(1) of the 1961 Act. The question related to the claim of deduction on account of the sales tax liability paid during the year 1957-58, whereas the liability related to the accounting year 1949-50. The…

M/S. Housing & Urban Development Corporation Ltd., New Delhi vs. DCIT, New Delhi

In the result ground No. 3 of the appeal of the assessee is allowed accordingly

ITA 1165/DEL/2012[2004-05]Status: DisposedITAT Delhi07 Oct 2016AY 2004-05

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishihousing & Urban Development Dcit, Corporation Ltd., Hudco Circle-12(1), Vs. Bhawan, Lodhi Road, New Delhi, New Delhi Pan:Aaach0632A (Appellant) (Respondent)

For Appellant: Sh. Gagan Kumar, AdvFor Respondent: Sh. A. K. Saroha, CIT DR
Section 143Section 143(3)Section 263

…on of such dues cannot be disallowed merely on the ground that they relate to transactions pertaining to an earlier accounting year. In this connection, it is useful to refer to a decision of the Gauhati High Court in the case of CIT v. Nathmal Tolaram [1973] 88 ITR 234 which was a case arising under the Indian Income-tax Act, 1922, as to the interpretation of section 10(2)(xv) which is corresponding to section 37(1) of the 1961 Act. The question related to the claim of deduction on account of the sales tax liability paid during the year 1957-58, whereas the liability related to the accounting year 1949-50. The D…

CIT v. Nathmal Tolaram (88 ITR 234) — Cited in 16 Judgments | BharatTax