CIT v. Rajasthan Spinning and Weaving Mills Ltd.

274 ITR 465High Court2005#3741 most cited

What is CIT v. Rajasthan Spinning and Weaving Mills Ltd. authority for?

Expenditure incurred wholly and exclusively for the purpose of business, as stipulated in Section 37(1) of the Income Tax Act, is allowable as a deduction. This applies even if the expenditure is for deposits made due to commercial exigency and fulfills obligations under other statutes.

32

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2015 to 2024.

Also referred to as

CIT v. Rajasthan Spinning and Weaving Mills Ltd. · Section 37(1) · business expenditure · wholly and exclusively · commercial exigency · deposits · allowable deduction

Judgments citing CIT v. Rajasthan Spinning and Weaving Mills Ltd.

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 2(1), MANGALORE vs. M/S THE MANGALORE CATHOLIC CO-OPERATIVE BANK LIMITED, MANGALORE

In the result, appeal of the revenue is dismissed

ITA 172/PAN/2018[2014-15]Status: DisposedITAT Bangalore02 May 2024AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2014-15

For Appellant: Shri Balram R. Rao, A.RFor Respondent: Shri Narendra Kumar Naik, D.R
Section 145

…commercial exigency being established under the provisions of section 37(1) of the Act, the same has been considered in the light of the judgment of the Hon'ble Rajasthan High Court in Addl CIT v. Rajasthan Spg. & wvg. Mills Ltd. [20041 137 Taxman 367/[20051 274 ITR 465, which has been rendered following the decision of the Hon'ble Apex Court in the case of Sassoon J. David & Co. (P) Ltd. v. CIT Having regard to the legally settled principles with reference to the expression 'wholly or exclusively' used in section 37(lj of the Act, the Tribunal has dismissed the appeal filed by the revenue. We find it appropria…

M/S. CHAMBAL FERTILIZERS AND CHEMICALS LIMITED,KOTA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, KOTA

In the result, appeal of the revenue is dismissed

ITA 744/JPR/2018[2014-15]Status: DisposedITAT Jaipur13 May 2022AY 2014-15
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…e contribution to the trust. The claim of the assessee is that it has reimbursed the expenditure and hence the provisions of Section 40A(9) may not be applicable. The Hon'ble Rajasthan High Court in the case of CIT Vs. Rajasthan Spinning & Weaving Mills Ltd., 281 ITR 408 had an occasion to consider the allowability of expenditure relating to the donation of bus to school. In that case, the AO was of the view that the school is not owned by the company and the entry in the school is also not restricted to the wards of the workmen and staff members of the company. The expenditure was treated as donation. The Hon'bl…

CHAMBAL FERTILISERS AND CHEMICALS LIMITED,KOTA vs. ACIT, KOTA

In the result, appeal of the revenue is dismissed

ITA 291/JPR/2017[2013-14]Status: DisposedITAT Jaipur13 May 2022AY 2013-14
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…e contribution to the trust. The claim of the assessee is that it has reimbursed the expenditure and hence the provisions of Section 40A(9) may not be applicable. The Hon'ble Rajasthan High Court in the case of CIT Vs. Rajasthan Spinning & Weaving Mills Ltd., 281 ITR 408 had an occasion to consider the allowability of expenditure relating to the donation of bus to school. In that case, the AO was of the view that the school is not owned by the company and the entry in the school is also not restricted to the wards of the workmen and staff members of the company. The expenditure was treated as donation. The Hon'bl…

CHAMBAL FERTILISERS AND CHEMICALS LIMITED,KOTA vs. DCIT, KOTA

In the result, appeal of the revenue is dismissed

ITA 201/JPR/2017[2012-13]Status: DisposedITAT Jaipur13 May 2022AY 2012-13
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…e contribution to the trust. The claim of the assessee is that it has reimbursed the expenditure and hence the provisions of Section 40A(9) may not be applicable. The Hon'ble Rajasthan High Court in the case of CIT Vs. Rajasthan Spinning & Weaving Mills Ltd., 281 ITR 408 had an occasion to consider the allowability of expenditure relating to the donation of bus to school. In that case, the AO was of the view that the school is not owned by the company and the entry in the school is also not restricted to the wards of the workmen and staff members of the company. The expenditure was treated as donation. The Hon'bl…

THE PR COMMISSIONER OF INCOME TAX CIT(A) vs. M/S SOUTH CANARA DISTRICT

The appeal stands dismissed

ITA/115/2016HC Karnataka14 Dec 2021

Bench: S.SUJATHA,S VISHWAJITH SHETTY

Section 145Section 260Section 260A

…assessee as deposits. The commercial exigency being established under the provisions of Section 37(1) of the Act, the same has been considered in the light of the judgment of the Hon'ble Rajasthan High Court in RAJASTHAN SPINNING AND WEAVING MILLS LTD. - 274 ITR 465, which has been rendered following 7 the decision of the Hon'ble Apex Court in the case of SASOON J. DAVID & CO. P. LTD. VS CIT - 118 ITR 261 (SC). Having regard to the legally settled principles with reference to the expression 'wholly or exclusively' used in Section 37(1) of the Act, the Tribunal has dismissed the appeal filed by…

THE PR COMMISSIONER OF INCOME TAX, CIT(A) vs. M/S SOUTH CANARA DISTRICT

The appeal stands dismissed

ITA/393/2016HC Karnataka14 Dec 2021

Bench: S.SUJATHA,S VISHWAJITH SHETTY

Section 145Section 260Section 260A

…assessee as deposits. The commercial exigency being established under the provisions of Section 37(1) of the Act, the same has been considered in the light of the judgment of the Hon'ble Rajasthan High Court in RAJASTHAN SPINNING AND WEAVING MILLS LTD. - 274 ITR 465, which has been rendered following the decision of the Hon'ble Apex Court in the case of SASOON J. DAVID & CO. P. LTD. VS CIT - 118 ITR 261 (SC). Having regard to the legally settled principles with reference to the expression 'wholly or exclusively' used in Section 37(1) of the Act, the Tribunal has dismissed the appeal filed by the revenu…

THE PR COMMISSIONER OF INCOME TAX CIT(A) vs. M/S SOUTH CANARA DISTRICT

The appeal stands dismissed

ITA/116/2016HC Karnataka14 Dec 2021

Bench: S.SUJATHA,S VISHWAJITH SHETTY

Section 145Section 260Section 260A

…assessee as deposits. The commercial exigency being established under the provisions of Section 37(1) of the Act, the same has been considered in the light of the judgment of the Hon'ble Rajasthan High Court in RAJASTHAN SPINNING AND WEAVING MILLS LTD. - 274 ITR 465, which has been rendered following 7 the decision of the Hon'ble Apex Court in the case of SASOON J. DAVID & CO. P. LTD. VS CIT - 118 ITR 261 (SC). Having regard to the legally settled principles with reference to the expression 'wholly or exclusively' used in Section 37(1) of the Act, the Tribunal has dismissed the appeal filed by…

M/S SWANMANDIR JEWEL DESIGNER PRIVATE LIMITED ,TUMKUR vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1 , TUMKUR

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

ITA 141/BANG/2018[2012-13]Status: DisposedITAT Bangalore10 Aug 2021AY 2012-13

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2012 – 13

For Appellant: Shri Ravishankar S.V., A.RFor Respondent: Shri Kannan Narayanan, D.R
Section 32

…ITA No.141 /Bang/2018 M/s. Swarnmandir Jewel Designer Pvt. Ltd., Tumkur IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment Year: 2012 – 13 M/s. Swarnmandir Jewel Designer Pvt. Ltd. 2nd Floor, Santrupthi Complex ACIT Vivekananda Road Vs. Circle-1 Tumkur 572101 Tumkur PAN NO : AANCS1355A APPELLANT RESPONDENT Appellant by : Shri Ravishankar S.V., A.R. Respondent by : Shri Kannan Narayanan, D.R. Date of Hearing : 01.07.2021 Date of Pronouncement : 10.08.2021 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER:…

SRI. B. RUDRAGOUDA,BELLARY vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 1, BELLARY

In the result, the appeal is allowed

ITA 315/BANG/2020[2016-17]Status: DisposedITAT Bangalore15 Apr 2021AY 2016-17

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Chythanya K.K., AdvocateFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ITA Nos.314 & 315/Bang/2020 Assessment years : 2015-16 & 2016-17 Shri B. Rudragouda, Vs. The Assistant Commissioner No.2198, BKG House, of Income Tax, KHB Colony, Circle 1, Sandur, Bellary – 583 101. Bellary. PAN: AFUPG 1386A APPELLANT RESPONDENT Appellant by : Shri Chythanya K.K., Advocate Respondent by : Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru. Date of hearing : 12.03.2021 Date of Pronouncement : 15.04.2021 O R D E R Per Chandra Poojari, Accountant Me…

SRI. B. RUDRAGOUDA,BELLARY vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE- 1, BELLARY

In the result, the appeal is allowed

ITA 314/BANG/2020[2015-16]Status: DisposedITAT Bangalore15 Apr 2021AY 2015-16

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Chythanya K.K., AdvocateFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ITA Nos.314 & 315/Bang/2020 Assessment years : 2015-16 & 2016-17 Shri B. Rudragouda, Vs. The Assistant Commissioner No.2198, BKG House, of Income Tax, KHB Colony, Circle 1, Sandur, Bellary – 583 101. Bellary. PAN: AFUPG 1386A APPELLANT RESPONDENT Appellant by : Shri Chythanya K.K., Advocate Respondent by : Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru. Date of hearing : 12.03.2021 Date of Pronouncement : 15.04.2021 O R D E R Per Chandra Poojari, Accountant Me…

RUNGTA MINES LTD.,KOLKATA vs. PRINCIPAL CIT - 1, KOLKATA , KOLKATA

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

ITA 1326/KOL/2018[2013-14]Status: DisposedITAT Kolkata06 Jan 2021AY 2013-14

Bench: Sri J. Sudhakar Reddy & Smt. Madhumita Roy)

Section 143(3)Section 263Section 37(1)

…nditure incurred for the benefit of the assessee is allowable u/s 37(1) of the Act is against the propositions of law laid down in the following cases: a) CIT vs. Travancore Cochin Chemicals Ltd. 243 ITR 284 (Ker.) b) CIT vs. Rajasthan Spg. & Wvg Mills Ltd. 281 ITR 408 (Raj.) c) CIT vs. Coats Vijella India Ltd. 253 ITR 667 (Mad.) 5.2. Applying the propositions of law laid down in the decision of the Tribunal in Bengal NRI Complex Ltd. (supra), we have to hold that the expenditure incurred by the assessee to fulfil the obligations of Section 135 of Companies Act, 2013 is allowable as 8 I.T.A. No. 1326/Kol/2018…

M/S. SAFINA HOTELS PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 6(1)(1), BANGALORE

In the result, the appeal of the assessee is allowed

ITA 2512/BANG/2019[2016-17]Status: DisposedITAT Bangalore09 Nov 2020AY 2016-17

Bench: Shri N.V. Vasudevan & Shri Chandra Poojarim/S. Safina Hotels Pvt. Ltd., 84/85, Safina Plaza, Infantry Road, Bangalore-560 001 ….Appellant Pan Aaccs 5146G Vs. Dy. Commissioner Of Income Tax, Circle 6(1)(1), Bangalore. ……Respondent. Assessee By: Shri Tata Krishna, Advocate. Revenue By: Shri Kannan Narayanan, Jcit(D.R)

For Appellant: Shri Tata Krishna, AdvocateFor Respondent: Shri Kannan Narayanan, JCIT(D.R)
Section 143(2)Section 143(3)Section 32Section 37

…axman 193 (Bombay) (MAG.) • CIT v. Ballarpur Industries Ltd. [2017] 85 taxmann.com 13 (Bombay) • CIT v. M. Ethurajan [2005] 273 ITR 95 (Madras) • CIT v. Aspentech India (P.) Ltd. [2010] 187 Taxman 25 (Delhi), • ADCIT v. Rajasthan Spg. & Wvg. Mills Ltd. [2005] 274 ITR 465 (Rajasthan) • CIT v. Darashaw & Co. (P.) Ltd. [2014] 226 Taxman 193 (Bombay)(MAG.) • Appa Rao v. CIT [ 1962] 46 ITR 511 (Mad) • Mohamed Ghouse v. CIT [ 1963] 49 ITR 127 (Mad) • Ormerods (India) Private Ltd. v. CIT [ 1959] 36 ITR 329 (Born) • Chhail Behari Lal v. CIT [ 1960] 39 ITR 696 (All), • CIT v. Dr. Fida Hussain G. Abbasi [ 1969] 71 ITR 314…

PERMALI WALLCE LTD. ,BHOPAL vs. ASSISTANT COMMISSIONER OF INCOME TAX 3 (1), BHOPAL

In the result, the appeal of the assessee stands allowed

ITA 222/IND/2018[2013-14]Status: DisposedITAT Indore29 Nov 2019AY 2013-14

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2013-14 Permali Wallace Ltd. Acit-3(1) बनाम/ Hoshangabad Road, Bhopal Bhopal Vs. (Appellant) (Revenue) Pan: Aabcp7557R Appellant By Miss Nisha Lahoti, Ca Revenue By Shri K.G. Goyal, Sr. Dr Date Of Hearing: 25.11.2019 Date Of Pronouncement: 29.11.2019 आदेश / O R D E R Per Manish Borad, A.M: This Appeal At The Instance Of Assessee Pertaining To A.Y. 2013-14 Is Directed Against The Order Of Commissioner Of Income Tax(Appeals)-2, Bhopal, (In Short ‘Cit’), Dated 02.07.2018 Which Is Arising Out Of The Order U/S 143(3) Of The Income Tax Act 1961(Hereinafter Called As The ‘Act’) Framed On 22.02.2016 By Acit- 3(1), Bhopal. 2. The Assessee Has Raised Following Grounds Of Appeal:

Section 143(2)Section 143(3)

…आयकर अपील"य अ"धकरण, इ"दौर "यायपीठ, इ"दौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER Assessment Year: 2013-14 Permali Wallace Ltd. ACIT-3(1) बनाम/ Hoshangabad Road, Bhopal Bhopal Vs. (Appellant) (Revenue) PAN: AABCP7557R Appellant by Miss Nisha Lahoti, CA Revenue by Shri K.G. Goyal, Sr. DR Date of Hearing: 25.11.2019 Date of Pronouncement: 29.11.2019 आदेश / O R D E R PER MANISH BORAD, A.M: This appeal at the instance of Assessee pertaining to A.Y. 2013-14 is directed against the order of Commissioner of Income Tax(A…

JCIT, RANG-2, KOTA vs. CHAMBAL FERTILISERS AND CHEMICALS LIMITED, KOTA

In the result, respective grounds of appeal are allowed for statistical purposes

ITA 575/JPR/2015[2011-12]Status: DisposedITAT Jaipur17 Oct 2018AY 2011-12
For Appellant: Shri Percy Pardiwala (Adv.)For Respondent: Shri Varinder Mehta (CIT)
Section 14A

…see is that it has reimbursed the expenditure and hence the provisions of Section 40A(9) may not be applicable. The Hon'ble Rajasthan High Court in the M/s Chambal Fertilizers & Chemicals Ltd. Vs. ACIT case of CIT Vs. Rajasthan Spinning & Weaving Mills Ltd., 281 ITR 408 had an occasion to consider the allowability of expenditure relating to the donation of bus to school. In that case, the AO was of the view that the school is not owned by the company and the entry in the school is also not restricted to the wards of the workmen and staff members of the company. The expenditure was treated as donation. The Hon'bl…

CHAMBAL FERTILISERS AND CHEMICALS LIMITED,KOTA vs. JCIT, KOTA

In the result, respective grounds of appeal are allowed for statistical purposes

ITA 461/JPR/2015[2011-12]Status: DisposedITAT Jaipur17 Oct 2018AY 2011-12
For Appellant: Shri Percy Pardiwala (Adv.)For Respondent: Shri Varinder Mehta (CIT)
Section 14A

…see is that it has reimbursed the expenditure and hence the provisions of Section 40A(9) may not be applicable. The Hon'ble Rajasthan High Court in the M/s Chambal Fertilizers & Chemicals Ltd. Vs. ACIT case of CIT Vs. Rajasthan Spinning & Weaving Mills Ltd., 281 ITR 408 had an occasion to consider the allowability of expenditure relating to the donation of bus to school. In that case, the AO was of the view that the school is not owned by the company and the entry in the school is also not restricted to the wards of the workmen and staff members of the company. The expenditure was treated as donation. The Hon'bl…

MARUTI SUZUKI INDIA LTD.,NEW DELHI vs. ADDL. CIT, NEW DELHI

Appeal of the assessee is partly allowed for statistical purpose

ITA 467/DEL/2014[2009-10]Status: DisposedITAT Delhi17 Oct 2018AY 2009-10

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 467/Del/2014 (A.Y 2009-10)

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…ratories Ltd. : ITA No.743 of 2008 iii) CIT v. Madras Refineries Ltd.: 266 ITR 170 (Mad.) iv) CIT v. Rajasthan Spinning and Weaving Mills Ltd.: 281 ITR 408 (Raj.), The Rajasthan High Court, while relying on its decision in the assessee’s own case reported at 274 ITR 465 decided the issue in favour of the assessee. v) The Bombay High Court in the case of Krishna Sahakari Sakhar Karkhana Ltd v. CIT: 229 ITR 577 held that contribution to the education fund under the Maharashtra Cooperative Societies Act, 1960 was allowable as 158 revenue expenditure. The Chennai High Court in the case of CIT v. Chennai Petroleum…

M/S. PRICEWATERHOUSECOOPERS PRIVATE LIMITED,KOLKATA vs. ACIT, CIR-2(2), KOLKATA, KOLKATA

ITA 483/KOL/2017[2012-13]Status: DisposedITAT Kolkata12 Sept 2018AY 2012-13

Bench: Shri S.S.Godara & Shri, M. Balaganeshassessment Year :2012-13 M/S Pricewaterhousecoopers V/S. Acit, Circle-2(2), Pvt.Ltd., Block-Ep, Plot-Y-14, Aayakar Bhavan, P-7, Salt Lake City, Sector-V, Chowringhee Square, Kokata-91 Kokata-69 [Pan No.Aabcp 9181 H] .. अपीलाथ" /Appellant ""यथ"/Respondent Shri Kanchan Kaushal, Ar अपीलाथ" क" ओर से/By Appellant Shri P.K. Srihari, Cit-Dr ""यथ" क" ओर से/By Respondent 14-06-2018 सुनवाई क" तार"ख/Date Of Hearing 12-09-2018 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per S.S.Godara:- This Assessee’S Appeal For Assessment Year 2012-13 Arises Against The Asstt. Commissioner Of Income Tax, Circle-2(2), Kolkata’S Assessment Order Dated 30.01.2017, Involving Proceedings Section 144C R.W. 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. 2. The Assessee Appellant’S First Substantive Ground Raised In The Instant Appeal Challenge Correctness Of Transfer Price Adjustment Amounting To ₹345,51,562/- In Course Of Assessment As Pertaining To Its International Transactions With Its Overseas Associate Enterprise (Ae). This Assessee Is A Company Providing Consultancy Including Tax & Regulatory Services. It Filed Its Return On 30.11.2012 Stating Total Income Of ₹51,62,16,310/-. This Followed Its Revised Return Dated 31.03.2014 Reducing Its Taxable Income To ₹49,87,12,700/-. The Assessing Officer Took Up Scrutiny. He Came Across

Section 144CSection 92C

…nsideration for obtaining commercial advantage liability to be treated as revenue expenditure. Case law CIT vs. Chemicals & Plastics India Ltd. 292 ITR 155 (Mad), CIT vs. Co-operative Sugars Ltd. 304 ITR 259 (Ker) and ACIT vs. Rajasthan Spg. & Wvg. Mills Ltd. 274 ITR 465 (Raj) is quoted in support. We find no merit in assessee’s above submissions. We make it clear that although it has placed on record its only membership detailed followed by actual payment. it is very much imperative to prove the scheme of above counal or its bye-laws vis-à-vis the assessee’s relevant business activity. We are of the opinion that…

DEPUTY COMMISSIONR OF INCOME TAX, CIRCLE-6, JAIPUR vs. RAJASTHAN RENEWABLE ENERGY CORPORATION LTD., JAIPUR

In the result, we confirm the order of the ld CIT(A) and ground of appeal taken by the Revenue is dismissed

ITA 816/JPR/2017[2014-15]Status: DisposedITAT Jaipur15 Mar 2018AY 2014-15
For Appellant: Shri PC Parwal (CA)For Respondent: Shri Varinder Mehta (CIT) fu/kZkfjrh dh vksj ls@
Section 36(1)(va)Section 37Section 37(1)Section 43B

…ing in the State public Enterprises. We are thus of the view that contribution made to the said fund is solely for the purpose of the welfare and benefit of the employees. The Rajasthan high Court in case of CIT V. Rajasthan Spinning and Weaving Mills Limited 274 ITR 465 has observed that it is for the assessee to decide whether any expenditure should be incurred in course of business. The expenditure can be incurred voluntarily and without necessity. Any contribution made by the assessee to a public welfare fund which is connected or related with his business is an allowable deduction u/s 37. Again the court in…

ACIT, JAIPUR vs. RAJASTHAN STATE INDUSTRIAL DEVELOPMENT & INVESTMENT CORPORATION LTD., JAIPUR

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 323/JPR/2016[2009-10]Status: DisposedITAT Jaipur23 Feb 2018AY 2009-10
Section 143(3)

…turing in the State Public Enterprises. We are thus of the view that contribution made to the said fund is solely for the purpose of welfare and benefit of the 5 employees. The Rajasthan High Court in case of CIT Vs. Rajasthan Spinning and Weaving Mills Ltd., 274 ITR 465 has been observed that if is for the assessee to decide whether any expenditure should be incurred in course of business. The expenditure can be incurred voluntarily and without necessity. Any contribution made by the assessee to a public welfare fund which is connected or related with his business is an allowable deduction u/s 37. Again the Cour…

RAJASTHAN STATE INDUSTRIAL DEVELOPMENT & INVESTMENT CORP. LTD.,JAIPUR vs. ACIT, JAIPUR

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 94/JPR/2015[2012-13]Status: DisposedITAT Jaipur23 Feb 2018AY 2012-13
Section 143(3)

…turing in the State Public Enterprises. We are thus of the view that contribution made to the said fund is solely for the purpose of welfare and benefit of the 5 employees. The Rajasthan High Court in case of CIT Vs. Rajasthan Spinning and Weaving Mills Ltd., 274 ITR 465 has been observed that if is for the assessee to decide whether any expenditure should be incurred in course of business. The expenditure can be incurred voluntarily and without necessity. Any contribution made by the assessee to a public welfare fund which is connected or related with his business is an allowable deduction u/s 37. Again the Cour…

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CIT v. Rajasthan Spinning and Weaving Mills Ltd. (274 ITR 465) — Cited in 32 Judgments | BharatTax