How many judgments cite CIT v. Rajendra Prasad Moody?

386 judgments on BharatTax cite CIT v. Rajendra Prasad Moody (115 ITR 519), spanning 2009 to 2026.

Which sections of the Income Tax Act does CIT v. Rajendra Prasad Moody come up under?

It is most often cited in judgments turning on Section 143(3), Section 57(iii), Section 1961, Section 14A, Section 37(1), Section 68.

CIT v. Rajendra Prasad Moody

115 ITR 519Supreme Court of India1978#191 most cited

What is CIT v. Rajendra Prasad Moody authority for?

For deductions under Section 57(iii) relating to "Income from Other Sources," an expenditure is allowable if it is laid out wholly and exclusively for the purpose of making or earning such income, even if no income is actually earned in that previous year.

386

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2009 to 2026.

Also referred to as

CIT v. Rajendra Prasad Moody · Rajendra Prasad Moody · 115 ITR 519 · Section 57(iii) · Income from Other Sources · deductibility of expenditure · expenses without income · wholly and exclusively · purpose of making income · Section 14A distinction · disallowance of expenses

Sections most often in play

Section 143(3)Section 57(iii)Section 1961 Section 14A Section 37(1)Section 68 Section 36(1)(iii)Section 143(2)

Issues it is cited on

section 57(iii)section 57 disallowance u/s 14a disallowance under section 14a section 14a capital expenditure section 37(1)income from other sources section 37 salary previous year section 10

Judgments citing CIT v. Rajendra Prasad Moody

Dystar India P.Ltd, Navi Mumbai vs. Jt CIT (OSD) 8(1), Mumbai

In the result appeal of the revenue stands dismissed and both the appeals filed by the assessee are allowed

ITA 3046/MUM/2012[2009-10]Status: DisposedITAT Mumbai27 Apr 2016AY 2009-10

Bench: Shri Amit Shukla & Shri Ramit Kochar

Section 143(3)Section 14A

…Hon’ble High Court after discussing the various decisions डाय"टर इं"डया "ाइवेट "ल"मटेड 4 M/s Dystar India Pvt Ltd, ITA No. 3045 /Mum/2014 ITA No. 4088/Mum/2014 including that of Hon’ble Supreme Court in the case of Rajendera Prasad Moody, reported in [1978] 115 ITR 519) came to the following conclusion:- “23. In the context of the facts enumerated hereinbefore the Court answers the question framed by holding that the expression ‘does not form part of the total income’ in Section 14A of the envisages that there should be an actual receipt of income, which is not includible in the total income, during the releva…

Dystar India P.Ltd, Navi Mumbai vs. Jt CIT (OSD) 8(1), Mumbai

In the result appeal of the revenue stands dismissed and both the appeals filed by the assessee are allowed

ITA 3045/MUM/2012[2008-09]Status: DisposedITAT Mumbai27 Apr 2016AY 2008-09

Bench: Shri Amit Shukla & Shri Ramit Kochar

Section 143(3)Section 14A

Frigoglass India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

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

ITA 1906/DEL/2015[2010-11]Status: DisposedITAT Delhi08 Apr 2016AY 2010-11

Bench: Shri S.V. Mehrotra & Shri Sudhanshu Srivastavaay: 2010-11 Frigoglas India Pvt. Ltd., Vs Dcit, Plot 26-A, Sector-3, Circle-9(2), Imt Manesar, New Delhi. Gurgaon. (Pan: Aaacf6804G) (Appellant) (Respondent) Appellant By: Shri Harpreet Singh, Adv. Shri Rophan Khare, Adv. Shri Gagandeep Nagpal, Ca Respondent By: Shri Amendra Kumar, Cit Dr Date Of Hearing: 11.01.2016 Date Of Pronouncement: 08.04.2016

For Appellant: Shri Harpreet Singh, AdvFor Respondent: Shri Amendra Kumar, CIT DR

Section 143(3)Section 92C

…he credit side to justify the deduction of an expense. The question whether an expenditure can be allowed as a deduction only if it has resulted in any income or profits came to be considered by the Supreme Court again in CIT v. Rajendra Prasad Moody , (1978) 115 ITR 519, and it was observed as under: - “We fail to appreciate how expenditure which is otherwise a proper expenditure can cease to be such merely because there is no receipt of income. Whatever is a proper outgoing by way of expenditure must be debited irrespective of whether there is receipt of income or not. That is the plain requirement of proper a…

DCIT Cir 3(1), Mumbai vs. Gateway Distriparks Ltd, Mumbai

The appeal of the Revenue is dismissed

ITA 5746/MUM/2013[2010-11]Status: DisposedITAT Mumbai07 Apr 2016AY 2010-11

Bench: Shri Joginder Singh & Shri Rajendraassessment Year-2010-11 Dcit, M/S Gateway Distriparks Circle-3(1), Ltd. B 1/3, Emca House बनाम/ Room No.607, 6Th Floor, Sahid Bhagatsingh Marg, Vs. Aayakar Bhavan, Mumbai- Mumbai-400020 Pan No.Aaacg3425C (राज"व /Revenue) (""यथ"/Respondent)

Section 80I

…. Holcim India (P.) Ltd. (I. T. A. No. 486 of 2014 decided on 5- 9-2014) (para 15) vi. CIT v. Hero Cycles Ltd. [2010] 323 ITR 518 (P&H) (para 15) vii. CIT v. Lakhani Marketing Incl. [2015] 4 ITR-OL 246 (P&H) (para 15) viii. CIT v. Rajendra Prasad Moody [1978] 115 ITR 519 (SC) (para 10) ix. CIT v. Shivam Motors (P.) Ltd. (ITA No. 88 of 2014 decided on 5-5-2014) (para 15) x. IT v. Winsome Textile Industries Ltd. [2009] 319 ITR 204 (P&H) (para 15) , xi. Eicher Goodearth Ltd. vs. CIT [2015] 378 ITR 28 (Delhi) (para 14) xii. Harish Krishnakant Bhatt v. ITA [2005] 278 ITR (AT) 1 (Ahd) (para 10) " xiii. Maxopp Investmen…

V.S.P. Stores Pvt. Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 4613/DEL/2011[2008-09]Status: DisposedITAT Delhi30 Mar 2016AY 2008-09

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2008-09 V/S V.S.P. Stores Private Limited Dcit, Circle-17 (1), Room Number- 11, Community Centre Saket, 221, Cr Building, New Delhi. New Delhi Pan: Aaacv0064A (Respondent) (Appellant)

Section 143Section 143(2)

…support of proposition of the assessee that the expenditure is allowable even if there is no income in the particular year, relied on the judgement of the Hon’ble Supreme Court in the case of Commissioner of Income-tax versus Rajendra Prasad Moody reported in 115 ITR 519 (SC). On the other hand, the Ld. Senior Departmental Representative, relying on the order of the lower authorities submitted that no business or professional receipts were shown by the assessee during the year and as such no deduction for expenses towards business or profession was allowable to the assessee. 5. We have heard the rival submissions…

Addl CIT 7(2), Mumbai vs. Reliance Communications Infrastructure Ltd, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 6726/MUM/2012[2008-09]Status: DisposedITAT Mumbai23 Mar 2016AY 2008-09

Bench: Shri Amit Shukla & Shri Ramit Kochar

Section 143(3)Section 194HSection 40a

…n by the Hon’ble Delhi High Court in the case of Cheminvest Ltd. (supra), no disallowance under section 14A can be made. The Hon’ble Delhi High Court after taking the note of Hon’ble Supreme Court in the case of CIT vs Rajendra Prasad Mody, reported in [1978] 115 ITR 519 (SC), held that if no exempt income has been earned during the year, then no disallowance can be made under section 14A. Thus, following the aforesaid ratio, we uphold the disallowance made by the Ld. CIT(A) and accordingly, ground no. (xi) is decided in favour of the assessee and against the revenue. "रलायंस कूमु"नकेशन इं"ा"""चर "ल"मटेड 14 Reli…

The Commissoner of Income Tax I vs. M/s. Alpha Thought Technologies P Ltd

ITTA/191/2011HC Telangana21 Mar 2016

Bench: RAMESH RANGANATHAN,M.SATYANARAYANA MURTHY

The Karnataka State Co-Operative Apex Bank Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, grounds of appeal Nos

ITA 1372/BANG/2014[2007-08]Status: DisposedITAT Bangalore29 Feb 2016AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raothe Karnataka State Co-Operative Apex Bank Ltd., ‘Uthunga’, No.1, Pmk Road, Chamarajpet, Bangalore-560018. … Appellant Pan:Aabat 0269 J Vs. Deputy Commissioner Of Income-Tax, Circle 3(1), Bangalore. … Respondent

For Appellant: Shri Bharath L, CAFor Respondent: Shri Sanjay Kumar, CIT(DR)

Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 28

…e to the above fund. For allowance of expenditure, it is settled proposition of law that the expenditure should result in profit. In this connection, reference may be made to the decision of the Hon’ble Apex Court in the case of CIT vs. Rajendra Prasad Moody (115 ITR 519). It may be further stated that one of the objects of the assessee-co-operative bank is to develop or assist and co-operative the member district central co-operative Page 11 of 13 banks and other co-operative societies and therefore the contribution was only made in further pursuance of the objects of the bank for which it was established and th…

Vipul N Ambani, Mumbai vs. ACIT Cir 2(3), Mumbai

In the result, the assessee’s appeal is dismissed

ITA 3500/MUM/2013[2009-10]Status: DisposedITAT Mumbai19 Feb 2016AY 2009-10

Bench: Shri Jason P. Boaz, Am & Shri Sandeep Gosain, Jm आयकर अपील सं./ I.T.A. No. 3500/Mum/2013 ("नधा"रण वष" / Assessment Year: 2009-10)

For Appellant: Shri Vikram Batra

Section 143(1)Section 14ASection 69C

…red to be computed is true and correct taxable income. In the process, the quantum of disallowance uls 14A may be higher than the exempt income. 7.4 A reference may be made to the Hon'ble Supreme Court's decision in the case of CIT v Is Rajendra Prasad Moody 115 ITR 519 wherein it was held that interest paid on money borrowed for investment in shares which had not yielded any dividend, was admissible deduction. It was the case when the dividend was taxable. It is clear that the deduction of expenses was never related with the income. 7.5 Now the situation is other wise. The dividend is exempt from tax. The ques…

Ashish Anand, New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 5774/DEL/2015[2011-12]Status: DisposedITAT Delhi17 Feb 2016AY 2011-12

Bench: Shri P.K. Bansal

For Appellant: Shri Akshat, CAFor Respondent: Shri Robin Rawal, Senior DR

Section 2Section 57

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘SMC-I’ : NEW DELHI) BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER ITA No.5774/Del./2015 (ASSESSMENT YEAR : 2011-12) Shri Ashish Anand, vs. DCIT, Circle 10 (1), 11, Hauz Khas Village, New Delhi. New Delhi – 110 016. (PAN : AAEPA5764F) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Akshat, CA REVENUE BY : Shri Robin Rawal, Senior DR Date of Hearing : 16.02.2016 Date of Pronouncement : 17.02.2016 O R D E R This appeal has been filed by the assessee against the order of the CIT (Appeals) dated 27.08.2015. 2. The only issue involved in this appeal relate to the disal…

Fibres & Fabrics International P Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Circel-11(3), Bangalore

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

ITA 1352/BANG/2014[2005-06]Status: DisposedITAT Bangalore10 Feb 2016AY 2005-06

Bench: Shri Vijaypal Rao & Shri Inturi Rama Raom/S.Fibres & Fabrics International Pvt. Ltd. No.21, E-1, 2Nd Phase, Peenya Industrial Area, Bangalore-560058. … Appellant Pan: Aaacf 6841 M Vs. Deputy Commissioner Of Income-Tax, Circle 11(3), Bangalore. … Respondent

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Smt.Neera Malhotra, CIT(DR)

Section 147Section 253Section 32(1)(ii)

…the credit side to justify the deduction of an expense". The question whether an expenditure can be allowed as a deduction only if it has resulted in any income or profits came to be considered by the Supreme Court again in CIT v. Rajendra Prasad Moody [1978] 115 ITR 519 (SC), and it was observed as under: - Page 21 of 37 "We fail to appreciate how expenditure which is otherwise a proper expenditure can cease to be such merely because there is no receipt of income. Whatever is a proper outgoing by way of expenditure must be debited irrespective of whether there is receipt of income or not. That is the plain requi…

ITO 2(3)(4), Mumbai vs. Walchand People First Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 3527/MUM/2013[2009-10]Status: DisposedITAT Mumbai04 Feb 2016AY 2009-10

Bench: Shri Amit Shukla & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 2543/Mum/2013 ("नधा"रण वष" / Assessment Year : 2009-10)

Section 250

…company. The assessee company submitted that the expenditure were incurred for the purposes of the business that is carried on by the assessee company. The assessee company relied upon the decision of Hon’ble Supreme Court in the case of Rajendra Prasad Moody 115 ITR 519(SC). ITA 2543/M/13 & ITA No. 3527/M/13 8 & C.O. 156/Mum/2014 Without prejudice, the assessee company submitted that despite lull in the business or no business activity, still the expenses that are necessarily to be incurred in order to maintain corporate entity are to be allowed as business expenditure The A.O. after considering the submissi…

Walchand People First Ltd., Mumbai vs. ITO - 2(3)(4), Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 2543/MUM/2013[2009-10]Status: DisposedITAT Mumbai04 Feb 2016AY 2009-10

Bench: Shri Amit Shukla & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 2543/Mum/2013 ("नधा"रण वष" / Assessment Year : 2009-10)

Section 250

Gill & Co. P.Ltd, Mumbai vs. Addl CIT Cir 2(1), Mumbai

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes

ITA 5837/MUM/2011[2008-09]Status: DisposedITAT Mumbai01 Jan 2016AY 2008-09

Bench: S/Shri B.R.Baskaran & Shri Sandeep Gosainआयकर अपीऱ सं./I.T.A. No.5837/Mum/2011 (निर्धारण वर्ा / Assessment Year :2008-09) Gill & Co.Pvt.Ltd., बिधम/ Addl. Commissioner Of Income Ntc House, Tax Circle 2(1) Vs. Narrottam Morarji Marg, Aayakar Bhavan, Ballard Estate, M K Road, Mumbai-400038 Mumbai-400020 स्थायी ऱेखा सं./ Pan : (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. स्थामी रेखा सं./जीआइआय सं./Pan. :Aaacg3743M

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Kailash Kanojiya

Section 14A

…of Cheminvest Ltd (ITA No.749/2014 dated 02-09-2015) that the provisions of sec. 14A shall be attracted only if there is actual receipt of exempt income. It further held that the decision rendered by Hon’ble Supreme Court in the case of Rajendra Prasad Moody (115 ITR 519)(SC) cannot be applied for working out disallowance u/s 14A of the Act. He further submitted that the Co- 3 ordinate bench of the Tribunal has considered an identical issue in the assessee’s own case in ITA No.6666/Mum/2010 and the Tribunal, vide its order dated 26.06.2013, has restored the matter to the file of the AO with the direction that th…

Deepak Nagji Vira, Mumbai vs. ITO 10(2)(4), Mumbai

In the result, the assessee’s appeal is dismissed

ITA 268/MUM/2015[2011-12]Status: DisposedITAT Mumbai20 Nov 2015AY 2011-12

Bench: Shri Sanjay Arora, Am आयकर अपील सं./I.T.A. No. 268/Mum/2015 ("नधा"रण वष" / Assessment Year: 2011-12) Deepak Nagji Vira Ito-10(2)(4), बनाम/ 11, Harichand Mill Compound, Aaykar Bhavan, M. K. Road, L.B.S. Marg, Vikroli (W), Marine Lines, Mumbai-400 020 Vs. Mumbai-400 079 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aabpv 1228 N (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Jay Gala ""यथ" क" ओर से/Respondent By : Shri Bharati Singh सुनवाई क" तार"ख / : 04.11.2015 Date Of Hearing घोषणा क" तार"ख / : 20.11.2015 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: This Is An Appeal By The Assessee Directed Against The Order By The Commissioner Of Income Tax (Appeals)-21, Mumbai (‘Cit(A)’ For Short) Dated 08.10.2014, Dismissing The Assessee’S Appeal Contesting Its Assessment U/S.143(3) Of The Income Tax Act, 1961 (‘The Act’ Hereinafter) For The Assessment Year (A.Y.) 2011- 12 Vide Order Dated 30.12.2013. 2. The Background Facts Of The Case Are That The Assessee, An Individual, Lent Monies To A Company, Purple Creation P. Ltd., At 12% P.A., During The Year, Earning Interest At Rs.23,82,523/-. The Same Were, However, Financed By Borrowed Capital, On Which Interest Stood Incurred At Rs.31,39,579/-. Besides, The Borrowing Being Through

For Appellant: Shri Jay GalaFor Respondent: Shri Bharati Singh

Section 143(3)Section 56Section 57

…s brokerage) incurred in its respect, is not in doubt. The ld. CIT(A) is wrong in doubting the same, and which forms the basis of his confirmation of the impugned disallowance of Rs.8.88 lacs. The Hon’ble Apex Court has in CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519 (SC) clarified that it is only the ‘purpose’ that is relevant, and not the actual earning of the income, which may well be uncertain. As long as, therefore, the expenditure is for the purpose of earning income, the allowance of expenditure cannot be denied. The Revenue’s case is based on the inference that in-as-much as the interest income is pre…

Nishith Rajnikant Shah, Mumbai vs. ACIT 10(3), Mumbai

In the result, appeal of the assessee is allowed for statistical purposes

ITA 3165/MUM/2012[2009-10]Status: DisposedITAT Mumbai18 Nov 2015AY 2009-10

For Appellant: Shri B.V.JhaveriFor Respondent: Shri Airiju Jaikaran

Section 143(3)(ii)Section 14ASection 56Section 57

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ ‘बी’, म ुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “B”, BENCH MUMBAI BEFORE SHRI SHAILENDRA KUMAR YADAV, JM & SHRI R.C.SHARMA, AM आमकय अऩीर सं./ITA No.3165/Mum/2012 (नििाारण वषा / Assessment Year :2009-2010) Shri Nishith Rajnikant Shah, 41, Vs. ACIT-10(3), Mumbai Valentina, Naoroju, Gamadia Road, Mumbai-400026 स्थामी रेखा सं./ जीआइआय सं./ PAN/GIR No. : AAFPS 2657 C (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee by : Shri B.V.Jhaveri याजस्व की ओर से /Revenue by : Shri Airiju Jaikaran सुनवाई की तायीख / Date of Hearing : 09/11/2015 घोषणा की तायीख/Da…

South Ltd) vs. Commissioner of Income Tax

The appeals are allowed but in the circumstances, with no

ITA/336/2014HC Delhi21 Sept 2015

Section 260A

…iness circles but it is not for the Court to decide which of them should have been employed when the Court is deciding a question under Section 12 (2) of the Income Tax Act.” 15. Subsequently in Commissioner of Income Tax v. Rajendra Prasad Moody (1978) 115 ITR 519 the Supreme Court addressed the question whether interest paid on money borrowed for investment in shares would be allowable as expenditure under Section 57 (iii) even where such shares had not yielded any dividend during the relevant AY. The Supreme Court explained that while Section 37 (1) of the 1961 Act provided for deduction of expendit…

South Ltd) vs. Commissioner of Income Tax

The appeals are allowed but in the circumstances, with no

ITA/334/2014HC Delhi21 Sept 2015

Section 260A

M/S Embassy Development Corporation vs. The Assistant Commissioner

The appeals are dismissed

ITA/465/2009HC Karnataka08 Sept 2015

Bench: B.MANOHAR,VINEET SARAN

Section 142(1)Section 143(1)Section 143(2)Section 260Section 43D

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 08TH DAY OF SEPTEMBER 2015 PRESENT THE HON’BLE MR.JUSTICE VINEET SARAN AND THE HON’BLE MR.JUSTICE B MANOHAR ITA Nos. 465 & 720-721 OF 2009 (IT) BETWEEN : M/S. EMBASSY DEVELOPMENT CORPORATION, REP. BY ITS PARTNER SRI. NARPAT SINGH CHORARIA, 1ST FLOOR, EMBASSY POINT, 150, INFANTRY ROAD, BANGALORE – 560 001. … APPELLANT (BY SRI. A.SHANKAR & M.LAVA, ADVS.,) AND: THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2(3), C.R.BUILDING, QUEENS ROAD, BANGALORE – 560 001. … RESPONDENT…

Cheminvest Limited vs. Commissioner of Income Tax-VI

The appeal is allowed in the above terms

ITA/749/2014HC Delhi02 Sept 2015

Section 10(33)Section 14Section 143(3)Section 14ASection 260A

…bility of Section 14A of the Act in an year when no exempt income had been earned. The Special Bench by an order dated 5th August 2009 answered the question by inter alia referring to the decision of the Supreme Court in CIT v. Rajendra Prasad Moody [1978] 115 ITR 519 (SC). The reasoning of the Special Bench was as under: “22. The controversy raised in this case is that the assessee had not earned or received any dividend in the year under consideration and, therefore, no disallowance can be made by invoking the provisions of Section 14A of the Act. We do not find any force in this contention of the a…