CIT v. Rajasthan Spinning and Weaving Mills Ltd.

274 ITR 465High Court2005#3736 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 366,339 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

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

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 93/JPR/2015[2011-12]Status: DisposedITAT Jaipur23 Feb 2018AY 2011-12
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…

DCIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corportation Ltd., Jaipur

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

ITA 208/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…

DCIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corportation Ltd., Jaipur

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

ITA 207/JPR/2015[2011-12]Status: DisposedITAT Jaipur23 Feb 2018AY 2011-12
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…

ACIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corp., Jaipur

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

ITA 421/JPR/2014[2010-11]Status: DisposedITAT Jaipur23 Feb 2018AY 2010-11
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…

ACIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corp., Jaipur

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

ITA 420/JPR/2014[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 313/JPR/2014[2010-11]Status: DisposedITAT Jaipur23 Feb 2018AY 2010-11
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. DCIT, Jaipur

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

ITA 311/JPR/2014[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…

Dy. C.I.T.1(1), Bilaspur(Cg) vs. Jspl, Raigarh(C.G)

In the result, the appeal is partly allowed

ITA 210/BIL/2014[2009-10]Status: DisposedITAT Raipur15 Jan 2018AY 2009-10

Bench: : Shri N.S.Saini & Shri Pavan Kumar Gadale, Judical Member Dcit-1(1), Bilaspur- Vs Jspl, 495004 Kharsia Road, Raighagh(Cg) Pan No. : Aabcj 4683 J (Appellant) .. Tsednepser Revenue By : Shri Sanjay Kumar, Dr Assessee By : Shri Mayank Jain, Ar Date Of Hearing : 12/01/2018 Date Of Pronouncement 15/01/2018 आदेश / O R D E R Per Shri N.S.Saini, Am: This Is An Appeal Filed By The Revenue Against The Order Of The Cit(A), Bilaspur, Dated 31.03.2014 For The Assessment Year 2009-2010. 2. The Sole Grievance Of The Revenue Is That The Cit(A) Erred In Deleting The Amount To The Extent Of Rs.2,10,89,707/- Out Of Disallowance Of Rs.3,36,18,098/- Made By The Ao Under The Head Corporate Social Responsibility Expenses. 3. Brief Facts Of The Case Are That The Assessee Is A Domestic Company, A Subsidiary Of Jindal Steel &.Power Limited (Jspl). It Derives Income From Power Generation & Mining. The Company Has Commenced The Commercial Generation Of Thermal Power From Its First Of The Four Units Of 250Mw Each From 08.12.2007. The Assessee Company Filed Its Income Tax Return For The Year Under Consideration Declaring

For Appellant: Shri Mayank Jain, ARFor Respondent: Shri Sanjay Kumar, DR
Section 37Section 37(1)

…ld as admissible business expenditure in the case of C1T Vs. Travencore Cochine Chemicals Ltd 243 1TR 284 (Ker.), Palani Andavar Mills Vs. CIT 110 ITR 284 (Ker.), Mysore Kirloskar Ltd. Vs. CIT 166 ITR 836 (Mad), CIT Vs. Rajasthan Spinning & Weaving Mills Ltd. 281 ITR 408 (Raj.), Bhatar Heavy Electrical Ltd. Vs. DCIT 98 TTJ 565 (Del), Simbholi Sugar Mills Ltd. Vs. CIT 45 ITR 125, etc.. Similarly, construction of roads and culverts for providing easier access for its workman and movement of goods are admissible expenditure u/s 37 of the Act. [Relied on CIT Vs. Coats Viyella India Ltd. (2002) 253 ITR 667 (Mad.), Sug…

Rajasthan State Mines & Minerals Ltd., Jaipur vs. ACIT, Jaipur

In the result, appeal of the Revenue is partly allowed for statistical purpose

ITA 253/JPR/2015[2007-08]Status: DisposedITAT Jaipur30 May 2017AY 2007-08

…pellant, where in para 15 Hon’ble Tribunal relied upon its decision dated 22.05.2009 in case of Rajasthan State Seeds Corporation Ltd, wherein relying upon Hon’ble Rajasthan High Court decisions in the case of CIT Vs. Rajasthan Spinning and Weaving Mills Ltd. 274 ITR 465 and CIT vs. Shri Rajasthan Syntex Ltd. 221 CTR 410 held that the 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 as it was provided for the benefit of the employees. Hon’ble Tribunal distinguished the decision of Hon’ble Rajasthan High Court in the case of…

Asst.C.I.T., Mangalore vs. M/S the South Canara District Central Co-Operative Bank Ltd., Mangalore

In the result, the appeal filed by the revenue is dismissed

ITA 1195/BANG/2015[2012-13]Status: DisposedITAT Bangalore09 Mar 2016AY 2012-13

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri S. Ramasubramanian, CAFor Respondent: Mrs. Neera Malhotra, CIT-II
Section 144Section 194A(3)

…s of the Hon’ble Supreme Court in the case of Sri Venkata Sathyanarayana Rice Mills Vs CIT(223) ITR 101. Hon’ble Madras High Court in CIT Vs Velumanickam Lodge (317) ITR 338 and Hon’ble Rajasthan High Court inAddl.CIT Vs Rajasthan Spinning and Waving Mill Ltd 274 ITR 465. The ld.CIT(A) has failed to appreciate that the facts and 4 ITA No.1195(Bang)/2015 circumstances of the quoted cases are different for the instant case. In all the above three cases the direct nexus between the expenditure and taxable income are clearly proved. But here there is no direct nexus exist or proved to the satisfaction of the AO. 8.…

ACIT, Mangalore vs. M/S South Canara District Central Co-Op Bank Ltd., Mangalore

ITA 34/BANG/2014[2010-11]Status: DisposedITAT Bangalore04 Sept 2015AY 2010-11

Bench: Shri N.V. Vasudevan & Shri S. Rifaur Rahmanassessment Year : 2010-11

For Appellant: Shri S. Ramasubramanian, CAFor Respondent: Shri V. Rajendra, CIT(DR)
Section 145Section 145(1)

…ed to appreciate that the facts and circumstances of the quoted case are different for the instant case. 8. Ld.CIT(Appeals) relied on the decision of Hon’ble Rajasthan High Court in Addl. Commissioner of Income Tax Vs Rajasthan Spinning and Weaving Mills Ltd. 274 ITR 465. The Ld. CIT(Appeals) has failed to appreciate that the facts and circumstances of the quoted case are different for the instant case.” 22. On going through the assessee’s claim of other expenditure amounting to Rs.2,81,57,340/-, the AO noticed that the assessee has made payments of Rs. 6,51,200/- each for six months and Rs. 9,11,000/- each for…

Assistant Commissioner of Income Tax, Mangalore vs. M/S South Canara District Central Co.Operative Bank Ltd, Mangalore

ITA 1266/BANG/2014[2011-12]Status: DisposedITAT Bangalore04 Sept 2015AY 2011-12

Bench: Shri N.V. Vasudevan & Shri S. Rifaur Rahmanassessment Year : 2010-11

For Appellant: Shri S. Ramasubramanian, CAFor Respondent: Shri V. Rajendra, CIT(DR)
Section 145Section 145(1)

…ed to appreciate that the facts and circumstances of the quoted case are different for the instant case. 8. Ld.CIT(Appeals) relied on the decision of Hon’ble Rajasthan High Court in Addl. Commissioner of Income Tax Vs Rajasthan Spinning and Weaving Mills Ltd. 274 ITR 465. The Ld. CIT(Appeals) has failed to appreciate that the facts and circumstances of the quoted case are different for the instant case.” 22. On going through the assessee’s claim of other expenditure amounting to Rs.2,81,57,340/-, the AO noticed that the assessee has made payments of Rs. 6,51,200/- each for six months and Rs. 9,11,000/- each for…