CIT v. Pure Beverages Ltd.

Siti Cable Network Ltd, Mumbai vs. Asst CIT RG 11(1), Mumbai

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

Bench: Shri R.C. Sharma & Shri Sandeep Gosainm/S. Siti Cable Network Ltd. Acit, Range -11(1) (Partly Mrged With Dish Tv India Ltd.) Room No. 439, 4Th Floor 135,Continental Building Vs. Aayakar Bhavan, M.K. Road Dr. Annie Besant Road Mumbai 400020 Worli, Mumbai 400018 Pan – Aaaca5478M Appellant Respondent Appellant By: Shri Vijay Mehta Respondent By: Shri Ashish Kumar Date Of Hearing: 25.07.2018 Date Of Pronouncement: 26.09.2018 O R D E R Per Sandeep Gosain, Jm This Appeal Filed By Revenue Is Directed Against The Order Of The Cit(A)-3, Mumbai Dated 15.09.2014 & It Relates To A.Y. 2005-05. 2. The Brief Facts Of The Case Are That The Assessee Is Engaged In The Business Of Rendering Cable Network Services (Called Multi System Operator) To Cable Operators, Subscribers, Franchisee & Affiliates, Etc. The Original Return Of Income Was Filed By The Assessee On 31.10.2004 Showing Loss Of `83,73,94,340/-. The Assessment Was Completed Under Section 143(3) Vide Order Dated 22.12.2006 Assessing The Total Income At `249,53,53,900/- By Adding Subscription Income Of `356,32,58,864/- & Disallowing Write Off Of Loan & Advances Of `5,09,64,244/- & Write Of Off Inventories Of Band Width Charges Of `2,23,59,985/-. The Learned Cit(A), Vide Order Dated 23.03.2007 & His Order Under Section 154 Dated 15.06.2007 Deleted The Addition Of Subscription Income & Inventories

…h that it was necessary to make advances to carry on business, it could be concluded that advances were paid in ordinary course of business and therefore, assessee was entitled to deduction under section 37( 1) - Held, yes” c. CIT v Pure Beverages Ltd. [1994] 209 ITR 131 (GUJ.) Section 37(1) of the Income-tax Act,1961 - Business expenditure - Allowability of - Assessment year 1975-76 - Assessee-company, a dealer in soft drinks, made arrangement with a bank to make advances to its dealers for purchase of electronic coolers which were necessary for chilling soft drinks - Assessee reimbursed to bank losses on accoun…

Khyati Realtors P.Ld, Mumbai vs. ACIT 6(2), Mumbai

In the result, appeal of assessee is allowed

…ch that it was necessary to make advances to carry on business, it could be concluded that advances were paid in ordinary course of business and therefore, assessee was entitled to deduction under section 37( 1) - Held, yes c. CIT v Pure Beverages Ltd. [1994] 209 ITR 131 (GUJ.) Section 37(1) of the Income-tax Act,1961 - Business expenditure - Allowability of - Assessment year 1975-76 - Assessee-company, a dealer in soft drinks, made arrangement with a bank to make advances to its dealers for purchase of electronic coolers which were necessary for chilling soft drinks - Assessee reimbursed to bank losses on accoun…