CIT v. Patel Bros. & Co. Ltd.

215 ITR 165Supreme Court of India1995#1915 most cited

What is CIT v. Patel Bros. & Co. Ltd. authority for?

This case establishes that a statutory amendment, specifically Section 9(1)(ii) relating to income deemed to accrue or arise in India (salary for services/leave), applies prospectively from its effective date, such as April 1, 2000.

60

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2007 to 2025.

Also referred to as

CIT v. Patel Bros. & Co. Ltd. · 215 ITR 165 · 4 SCC 485 · Section 9(1)(ii) · prospective application · statutory amendment · effective date · salary income · income deemed to accrue in India · Finance Act 1999 · CBDT Circular No. 779.

Also reported as

4 SCC 485

Sections most often in play

Section 14ASection 8DSection 143(3)Section 115JBSection 36(1)(vii)Section 36(1)(viia)Section 250Section 37(1)

Issues it is cited on

section 9(1)(ii)section 17(2)(iiia)section 8d(2)(ii)section 8dsection 14(2)section 17(2)goodwill arising on amalgamationsection 43(6)(c)section 5(b)section 14(1)section 55(2)section 10(33)

Judgments citing CIT v. Patel Bros. & Co. Ltd.

Idea Cellular Ltd, Mumbai vs. DCIT 3(2), Mumbai

In the result, appeal of the Revenue in ITA No

ITA 2285/MUM/2014[2008-09]Status: DisposedITAT Mumbai12 Oct 2022AY 2008-09
Section 143(3)Section 194HSection 40

…15. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4-2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165]. It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the M/s. Vodafone Idea Ltd., (Formerly known as Idea Cellular Ltd.,) Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. "5.2 The Act has expanded the existing Explanation wh…

DCIT 3(2), Mumbai vs. Idea Cellular Ltd, Mumbai

In the result, appeal of the Revenue in ITA No

ITA 2273/MUM/2014[2008-09]Status: DisposedITAT Mumbai12 Oct 2022AY 2008-09
Section 143(3)Section 194HSection 40

…15. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4-2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165]. It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the M/s. Vodafone Idea Ltd., (Formerly known as Idea Cellular Ltd.,) Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. "5.2 The Act has expanded the existing Explanation wh…

Wrinkle Vyapaar Pvt. Ltd, Kolkata vs. DCIT, Cir. 1(2), Kolkata

In the result, appeals of the assessee are allowed

ITA 350/KOL/2021[2016-17]Status: DisposedITAT Kolkata28 Sept 2022AY 2016-17

Bench: Shri Rajpal Yadav, Hon’Ble & Shri Rajesh Kumar, Hon’Blei.T.A. No. 284/Kol/2021 Assessment Year: 2015-16 Wrinkle Vyapaar Pvt. Ltd. Cit(A), Nfac (Delhi) Vs 40, Strand Road Model House Ground Floor Room No. 102 Kolkata - 700001 Pan : Aaacw5921F अपीलाथ"/ (Appellant) "" यथ"/ (Respondent)

For Appellant: Shri Anil Kochar, AdvocateFor Respondent: Shri Partha Pratim Barman, Addl. CIT
Section 14A

…5. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4- 2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165] . It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. "5.2 The Act has expanded the existing Explanation which states that salary paid for services rendered in India shall b…

Wrinkle Vyapaar Pvt Ltd, Kolkata vs. ITO, Ward-1(3), Kolkata

In the result, appeals of the assessee are allowed

ITA 284/KOL/2021[2015-116]Status: DisposedITAT Kolkata28 Sept 2022AY 2015-116

Bench: Shri Rajpal Yadav, Hon’Ble & Shri Rajesh Kumar, Hon’Blei.T.A. No. 284/Kol/2021 Assessment Year: 2015-16 Wrinkle Vyapaar Pvt. Ltd. Cit(A), Nfac (Delhi) Vs 40, Strand Road Model House Ground Floor Room No. 102 Kolkata - 700001 Pan : Aaacw5921F अपीलाथ"/ (Appellant) "" यथ"/ (Respondent)

For Appellant: Shri Anil Kochar, AdvocateFor Respondent: Shri Partha Pratim Barman, Addl. CIT
Section 14A

…5. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4- 2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165] . It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. "5.2 The Act has expanded the existing Explanation which states that salary paid for services rendered in India shall b…

Royal Orchid Hotels Ltd, Bengaluru vs. Assisstant Commissioner of Income Tax, Circle-5(1)(1), Bengaluru

In the result, this ground is allowed

ITA 793/BANG/2018[2011-12]Status: DisposedITAT Bangalore20 Sept 2022AY 2011-12

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year : 2011-12

For Appellant: Shri R.B Krishna, AdvocateFor Respondent: Shri Sankar Ganesh, JCIT (DR)
Section 14ASection 194HSection 40

…15. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4-2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165]. It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. "5.2 The Act has expanded the existing Explanation which states that salary paid for services rendered in India shall be…

M/S. Ukn Properties Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-7(1)(1), Bangalore

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

ITA 1739/BANG/2019[2013-14]Status: DisposedITAT Bangalore16 Sept 2022AY 2013-14

Bench: Shri N.V. Vasudevan & Ms. Padmavathy Sassessment Year : 2013-14

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Shri V S Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 14ASection 56(2)(vii)

…15. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4-2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165]. It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. "5.2 The Act has expanded the existing Explanation which states that salary paid for services rendered in India shall be…

Deputy Commissioner of Income Tax Circle-1(1)(1), Bangalore vs. M/S Acropetal Technologies Private Limited, Bangalore

In the result, both the appeals of the revenue are dismissed

ITA 8/BANG/2019[2014-15]Status: DisposedITAT Bangalore14 Sept 2022AY 2014-15

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S

For Appellant: Ms. Sunaina Bhatia, AdvocateFor Respondent: Shri V S Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 14ASection 40

…5. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4- 2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165]. It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. "5.2 The Act has expanded the existing Explanation which states that salary paid for services rendered in India shall be…

Deputy Commissioner of Income Tax Circle-1(1)(1), Bangalore vs. M/S Acropetal Technologies Private Limited, Bangalore

In the result, both the appeals of the revenue are dismissed

ITA 7/BANG/2019[2013-14]Status: DisposedITAT Bangalore14 Sept 2022AY 2013-14

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S

For Appellant: Ms. Sunaina Bhatia, AdvocateFor Respondent: Shri V S Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 14ASection 40

…5. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4- 2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165]. It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. "5.2 The Act has expanded the existing Explanation which states that salary paid for services rendered in India shall be…

Toyota Tsusho India Private Limited, Ramanagara vs. The Deputy Commissioner of Income Tax, Circle-7(1)(1), Bangalore

In the result, the appeal is allowed in favour of the assessee

ITA 175/BANG/2022[2017-18]Status: DisposedITAT Bangalore09 Sept 2022AY 2017-18

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy S

For Appellant: Shri Darpan Kriplani, CAFor Respondent: Shri V S Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 143(3)Section 14A

…15. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4-2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165]. It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. "5.2 The Act has expanded the existing Explanation which states that salary paid for services rendered in India shall be…

Babul Fiscal Services Private Limited, Kolkata vs. ACIT, Circle-2(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 318/KOL/2022[2017-2018]Status: DisposedITAT Kolkata02 Aug 2022AY 2017-2018

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Girish Agrawal

Section 142(1)Section 143(2)Section 14A

…5. Given this legislative history of Section 9(1)(ii), we can only assume that it was deliberately introduced with effect from 1-4- 2000 and therefore intended to apply prospectively [See CIT v. Patel Bros. & Co. Ltd., (1995) 4 SCC 485, 494 (para 18) : (1995) 215 ITR 165] . It was also understood as such by CBDT which issued Circular No. 779 dated 14-9-1999 containing Explanatory Notes on the provisions of the Finance Act, 1999 insofar as it related to direct taxes. It said in paras 5.2 and 5.3. “5.2 The Act has expanded the existing Explanation which states that salary paid for services rendered in India shall b…

R D Tata Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7242/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20

Bench: Us, Are As Follows: Assessment Year: 2019-20

Section 11Section 115TSection 12A

…evolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco Forex International Drill Inc Vs CIT [(2005) 279 ITR 310 (SC)], following CIT Vs Patel Brothers & Co Ltd [(1995) 215 ITR 165 (SC)], Hon’ble Supreme Court has observed that The CBDT circular conveying “departmental understanding of the effect of the 1999 amendment even if it were assumed not to bind the respondents under section 119 of the Act, nevertheless affords a reasonable construction of it, and there is no reason why we should not adopt it”. In the case of K P Ve…

Tata Education Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7241/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20
Section 11Section 115TSection 12A

…evolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco Forex International Drill Inc Vs CIT [(2005) 279 ITR 310 (SC)], following CIT Vs Patel Brothers & Co Ltd [(1995) 215 ITR 165 (SC)], Hon’ble Supreme Court has observed that The CBDT circular conveying “departmental understanding of the effect of the 1999 amendment even if it were assumed not to bind the respondents under section 119 of the Act, nevertheless affords a reasonable construction of it, and there is no reason why we should not adopt it”. In the case of K P Ve…

Sarvajanik Seva Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7240/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20

Bench: Us, Are As Follows: Assessment Year: 2019-20

Section 11Section 115TSection 12A

…evolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco Forex International Drill Inc Vs CIT [(2005) 279 ITR 310 (SC)], following CIT Vs Patel Brothers & Co Ltd [(1995) 215 ITR 165 (SC)], Hon’ble Supreme Court has observed that The CBDT circular conveying “departmental understanding of the effect of the 1999 amendment even if it were assumed not to bind the respondents under section 119 of the Act, nevertheless affords a reasonable construction of it, and there is no Assessment Year: 2019-20 Page 28 of 36 reason why we sho…

Jamsetji Tata Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7239/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20

Bench: Us, Are As Follows: Assessment Year: 2019-20

Section 11Section 115TSection 12A

…evolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco Forex International Drill Inc Vs CIT [(2005) 279 ITR 310 (SC)], following CIT Vs Patel Brothers & Co Ltd [(1995) 215 ITR 165 (SC)], Hon’ble Supreme Court has observed that The CBDT circular conveying “departmental understanding of the effect of the 1999 amendment even if it were assumed not to bind the respondents under section 119 of the Act, nevertheless affords a reasonable construction of it, and there is no reason why we should not adopt it”. In the case of K P Ve…

Navajbai Ratan Tata Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7238/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20

Bench: Us, Are As Follows: Page 2 Of 47 1 A) The Impugned Order Dated 31.10.2019 Passed By The Learned Principal Commissioner Of Income-Tax-17 ('Pcit') Under Section 12Aa(3)/(4) Of The Income-Tax Act, 1961 ('Ita') Cancelling The Registration Of The Appellant Is Without Jurisdiction And, Hence, Void Ab Initio.

Section 11Section 115TSection 12ASection 12A(3)

…evolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco Forex International Drill Inc Vs CIT [(2005) 279 ITR 310 (SC)], following CIT Vs Patel Brothers & Co Ltd [(1995) 215 ITR 165 (SC)], Hon’ble Supreme Court has observed that The CBDT circular conveying “departmental understanding of the effect of the 1999 amendment even if it were assumed not to bind the respondents under section 119 of the Act, nevertheless affords a reasonable construction of it, and there is no reason why we should not adopt it”. In the case of K P Ve…

Tata Social Welfare Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7237/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20

Bench: Us, Are As Follows: Assessment Year: 2019-20

Section 11Section 115TSection 12A

…evolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco Forex International Drill Inc Vs CIT [(2005) 279 ITR 310 (SC)], following CIT Vs Patel Brothers & Co Ltd [(1995) 215 ITR 165 (SC)], Hon’ble Supreme Court has observed that The CBDT circular conveying “departmental understanding of the effect of the 1999 amendment even if it were assumed not to bind the respondents under section 119 of the Act, nevertheless affords a reasonable construction of it, and there is no Assessment Year: 2019-20 Page 28 of 36 reason why we sho…

Commissioner of Income Tax vs. Woodward Governor India Pvt. Ltd

The appeal is dismissed

ITA-49/2005HC Delhi30 Apr 2007

…* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on : 23.3.2007 Date of Decision : 30.4.2007 + 1. ITA No. 49/2005 COMMISSIONER OF INCOME TAX ..... Appellant Through Ms. Prem Lata Bansal & Mr. R.D. Jolly, Sr. Standing Counsel with Mr. Sanjeev Sabharwal, Mr. Ajay K. Jha & Ms. Rashmi Chopra, Advocates versus WOODWARD GOVERNOR INDIA PVT. LTD. .... Respondent Through Mr.C.S. Aggarwal, Sr.Advocate with Mr. Prakash Kumar,Advocate 2. ITA No. 159/2006 COMMISSIONER OF INCOME TAX ..... Appellant Through Ms. Prem Lata Bansal & Mr. R.D. Jolly, S…

Commissioner of Income Tax vs. India Pvt. Ltd

The appeal is dismissed

ITA/49/2005HC Delhi30 Apr 2007

…* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on : 23.3.2007 Date of Decision : 30.4.2007 + 1. ITA No. 49/2005 COMMISSIONER OF INCOME TAX ..... Appellant Through Ms. Prem Lata Bansal & Mr. R.D. Jolly, Sr. Standing Counsel with Mr. Sanjeev Sabharwal, Mr. Ajay K. Jha & Ms. Rashmi Chopra, Advocates versus WOODWARD GOVERNOR INDIA PVT. LTD. .... Respondent Through Mr.C.S. Aggarwal, Sr.Advocate with Mr. Prakash Kumar,Advocate 2. ITA No. 159/2006 COMMISSIONER OF INCOME TAX ..... Appellant Through Ms. Prem Lata Bansal & Mr. R.D. Jolly, S…

M/S.Virtual Soft Systems Ltd vs. Commissioner of Income Tax, Delhi-I

C.A. No.-007115-007115 - 2005Supreme Court06 Feb 2007
For Respondent: Commissioner of Income Tax, Delhi-I
Section 260ASection 271(1)(c)Section 68

…ner of Stamps for Queensland, 1898 Appeal Cases 769 at 775 to 776. 3. R. Rajagopal Reddy (Dead) by Lrs. and others v. Padmini Chandrasekharan (Dead) by Lrs., 1995 (2) SCC page 630 at 646. 4. CIT v. Patel Brothers & Co. Ltd. & Ors., 215 ITR 165 (SC). 5. Sedco Forex International Drill Inc. & Ors. v. CIT & Anr., 279 ITR 310 page 317. In the present case, it is only in the Notes on Clauses relating to 2002 amendment that it has been stated that the said amendment is clarificatory. There is no such mention of the said amendment being clarificatory, anywhere in the stat…

M/S.Virtual Soft Systems Ltd vs. Commissioner of Income Tax, Delhi-I

C.A. No.-007115-007115 - 2005Supreme Court06 Feb 2007
For Respondent: Commissioner of Income Tax, Delhi-I
Section 260ASection 271(1)(c)Section 68

…ner of Stamps for Queensland, 1898 Appeal Cases 769 at 775 to 776. 3. R. Rajagopal Reddy (Dead) by Lrs. and others v. Padmini Chandrasekharan (Dead) by Lrs., 1995 (2) SCC page 630 at 646. 4. CIT v. Patel Brothers & Co. Ltd. & Ors., 215 ITR 165 (SC). 5. Sedco Forex International Drill Inc. & Ors. v. CIT & Anr., 279 ITR 310 page 317. In the present case, it is only in the Notes on Clauses relating to 2002 amendment that it has been stated that the said amendment is clarificatory. There is no such mention of the said amendment being clarificatory, anywhere in the stat…