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 367,154 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 1961Section 14ASection 37(1)Section 68Section 36(1)(iii)Section 143(2)

Issues it is cited on

section 57(iii)section 57disallowance u/s 14adisallowance under section 14asection 14acapital expendituresection 37(1)income from other sourcessection 37salaryprevious yearsection 10

Judgments citing CIT v. Rajendra Prasad Moody

JCIT(OSD), Circle-16(2), New Delhi vs. Media Transasia India Private Ltd., New Delhi

In the result, this appeal is dismissed

ITA 4849/DEL/2018[2014-15]Status: DisposedITAT Delhi20 Dec 2021AY 2014-15
Section 14Section 14ASection 37

…A of the Act without considering legal principle that the allowability or disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by the Hon’ble Supreme Court in the case of CIT Vs. Rajendra Prasad Moody [1978] 115 ITR 519 and without considering ratio decidendi as upheld in the cases of CIT Vs. Walfort Share and Stock Brokers P. Ltd [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT [2012] 347 ITR 272 (Delhi) on application of provisions of section 14A of the Act ? 4. That the appellant craves leave to add, amend, alter or forgo any ground/(s) of appeal either bef…

West Palm Developments LLP vs. Assistant Commissioner of

In the result, the order dated 14

ITA/598/2016HC Karnataka19 Nov 2021

Bench: ALOK ARADHE,ANANT RAMANATH HEGDE

Section 260Section 260ASection 36(1)(iii)Section 37Section 57

…es not have the power to take back the benefit granted by the Assessing Officer. In support of aforesaid submissions, reliance has been placed on decisions in 'SETH R DALMIA VS. CIT', (1977) 110 ITR 644 (SC), 'CIT VS. RAJENDRA PRASAD MODDY', (1978) 115 ITR 519 (SC), 'CIT VS. GORAWARA PLASTICS AND DGENERAL INDUSTRIES (P.) LTD.', (2007) 167 TAXMAN 174 (ALLAHABAD). 5. On the other hand, learned counsel for the revenue submitted that provisions of Section 36(i)(iii) of the Act are not attracted to the facts of the case as 7 the amount in question did not remain with the assessee for the purp…

Addl. CIT, New Delhi vs. M/S. Moser Baer Solar Ltd., New Delhi

Appeal are partly allowed

ITA 3577/DEL/2017[2009-10]Status: DisposedITAT Delhi13 Oct 2021AY 2009-10

Bench: Shri Kuldip Singh & Shri Prashant Maharishi

For Appellant: NoneFor Respondent: Shri Gaurav Pundir, Senior DR
Section 10(34)Section 14A

…e Act r.w. R 8D of the Rule without considering legal principles that allowability/disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon'ble Supreme Court in case of CIT Vs Rajendra Prasad Moody (1978) 115 ITR 519?” 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee company is into the business of manufacturing, marketing and selling of solar cells and modules using thin film technology. During scrutiny proceedings, Assessing Officer (AO) noticed that the assessee has earned dividend income of Rs.2,33,95,42…

ACIT, Circle-16(1), New Delhi vs. Mccann Erickson India Pvt. Ltd., New Delhi

In the result appeal filed by the ld

ITA 3528/DEL/2017[2009-10]Status: DisposedITAT Delhi07 Oct 2021AY 2009-10

Bench: Shri Kuldip Singh & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri Sanjesh Kumar JawaraniFor Respondent: Ms.Paramita M. Biswas
Section 14ASection 37(1)Section 40Section 41Section 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “E”: NEW DELHI ] BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER (Through Video Conferencing) ITA. No. 3528/Del/2017 (Assessment Year : 2009-10) ACIT, M/s. McCann Erickson Vs. India Pvt. Ltd., Circle : 16 (2), 204 – 206, Tolstoy Marg, New Delhi – 110 001. New Delhi. PAN: AAACT0835D (Appellant) (Respondent) Assessee by : Shri Sanjesh Kumar Jawarani, C. A.; Department by: Ms.Paramita M. Biswas [CIT] – D. R.; Date of Hearing : 20/09/2021 Date of pronouncement : 07/10/2021 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This ap…

ACIT, Circle- 17(2), New Delhi vs. National Fertilizers Ltd., New Delhi

Appeal are dismissed

ITA 3698/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Sept 2021AY 2014-15

Bench: Ms Suchitra Kamble & Sh. Prashant Maharishi

Section 145Section 14ASection 32Section 37(1)Section 40

…- u/s 14A of the Act without considering legal principle that allowability or disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon’ble Supreme Court in the case of CIT Vs. Rajendra Prasad Moody [1978] 115 ITR 519 and without considering ratio decidendi as upheld in the cases of CIT Vs. Walfort Share and Stock Brokers P. Ltd [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT [2012] 347 ITR 272 (Delhi) on application of provisions of section 14A of the Act? 7. Whether on the facts and circumstances of the case, Ld CIT (A) is legally justified in deleting di…

ACIT, Circle- 17(2), New Delhi vs. National Fertilizers Ltd., New Delhi

Appeal are dismissed

ITA 3697/DEL/2018[2013-14]Status: DisposedITAT Delhi30 Sept 2021AY 2013-14

Bench: Ms Suchitra Kamble & Sh. Prashant Maharishi

Section 145Section 14ASection 32Section 37(1)Section 40

…- u/s 14A of the Act without considering legal principle that allowability or disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon’ble Supreme Court in the case of CIT Vs. Rajendra Prasad Moody [1978] 115 ITR 519 and without considering ratio decidendi as upheld in the cases of CIT Vs. Walfort Share and Stock Brokers P. Ltd [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT [2012] 347 ITR 272 (Delhi) on application of provisions of section 14A of the Act? 7. Whether on the facts and circumstances of the case, Ld CIT (A) is legally justified in deleting di…

National Fertilizers Ltd., New Delhi vs. DCIT, Circle- 17(2), New Delhi

Appeal are dismissed

ITA 3438/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Sept 2021AY 2014-15

Bench: Ms Suchitra Kamble & Sh. Prashant Maharishi

Section 145Section 14ASection 32Section 37(1)Section 40

…- u/s 14A of the Act without considering legal principle that allowability or disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon’ble Supreme Court in the case of CIT Vs. Rajendra Prasad Moody [1978] 115 ITR 519 and without considering ratio decidendi as upheld in the cases of CIT Vs. Walfort Share and Stock Brokers P. Ltd [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT [2012] 347 ITR 272 (Delhi) on application of provisions of section 14A of the Act? 7. Whether on the facts and circumstances of the case, Ld CIT (A) is legally justified in deleting di…

National Fertilizers Ltd., New Delhi vs. DCIT, Circle- 17(2), New Delhi

Appeal are dismissed

ITA 3437/DEL/2018[2013-14]Status: DisposedITAT Delhi30 Sept 2021AY 2013-14

Bench: Ms Suchitra Kamble & Sh. Prashant Maharishi

Section 145Section 14ASection 32Section 37(1)Section 40

…- u/s 14A of the Act without considering legal principle that allowability or disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon’ble Supreme Court in the case of CIT Vs. Rajendra Prasad Moody [1978] 115 ITR 519 and without considering ratio decidendi as upheld in the cases of CIT Vs. Walfort Share and Stock Brokers P. Ltd [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT [2012] 347 ITR 272 (Delhi) on application of provisions of section 14A of the Act? 7. Whether on the facts and circumstances of the case, Ld CIT (A) is legally justified in deleting di…

Addl.CIT, Special Range-4, New Delhi vs. Infres Methodex Pvt. Ltd., New Delhi

The appeal of the Department stands partly allowed for statistical purpose

ITA 1126/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Sept 2021AY 2014-15
Section 14ASection 14A(1)

…sidering a legal principle that allowability/disallowability of expenditure under the Act is not conditional upon the earning of ACIT vs. Infres Methodex Pvt. Ltd., income as upheld by Hon’ble Supreme Court in the case of CIT vs. Rajendra Prasad Moody (1978) 115 ITR 519. 8. The appellant craves leave to add, amend, vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of appeal.” 3.0 The Ld. Sr. Departmental Representative (DR) submitted that the provision of warranty had been wrongly deleted by the Ld. CIT(A) because the assessee had no consistent basis…

Addlcit, New Delhi vs. M/S Mmtc Ltd., New Delhi

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

ITA 5166/DEL/2016[2010-11]Status: DisposedITAT Delhi29 Sept 2021AY 2010-11

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi(Through Video Conferencing) M/S. Mmtc Limited, Vs. Addl. Cit, Core: 1, Scope Complex – 7, Special Range : 6, Industrial Area, Lodhi Road, New Delhi. New Delhi – 110 003. Pan: Aaacm1433E & Addl. Cit, Vs. M/S. Mmtc Limited, Special Range : 6, Core: 1, Scope Complex – New Delhi. 7, Industrial Area, Lodhi Road, New Delhi – 110 003. Pan: Aaacm1433E (Appellants) (Respondents)

For Appellant: Shri Rohit Jain, Advocate; &For Respondent: Ms. Paramita M. Biswas
Section 14ASection 250Section 37(1)Section 43BSection 80G

…Act, 1961 amounting to Rs. 10,86,07,784/- without considering legal principles that allowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon’ble Supreme Court in case of CIT Vs. Rajendra Prasad Moody (1978) 115 ITR 519? 3. Whether in the facts and circumstances of the case and in law, the Ld. CIT(A) is justified in not upholding the disallowance u/s 14A read with rule 8D of the Income Tax Act, 1961 amounting to Rs. 10,86,07,784/- without considering ratio decidendi as upheld in cases of CIT vs Walfort Share and Stock Brokers P Ltd. [2010] 326 ITR 1 (SC) and Max…

Mmtc Ltd., New Delhi vs. Addl. CIT, New Delhi

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

ITA 5147/DEL/2016[2010-11]Status: DisposedITAT Delhi29 Sept 2021AY 2010-11

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi(Through Video Conferencing) M/S. Mmtc Limited, Vs. Addl. Cit, Core: 1, Scope Complex – 7, Special Range : 6, Industrial Area, Lodhi Road, New Delhi. New Delhi – 110 003. Pan: Aaacm1433E & Addl. Cit, Vs. M/S. Mmtc Limited, Special Range : 6, Core: 1, Scope Complex – New Delhi. 7, Industrial Area, Lodhi Road, New Delhi – 110 003. Pan: Aaacm1433E (Appellants) (Respondents)

For Appellant: Shri Rohit Jain, Advocate; &For Respondent: Ms. Paramita M. Biswas
Section 14ASection 250Section 37(1)Section 43BSection 80G

…Act, 1961 amounting to Rs. 10,86,07,784/- without considering legal principles that allowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon’ble Supreme Court in case of CIT Vs. Rajendra Prasad Moody (1978) 115 ITR 519? 3. Whether in the facts and circumstances of the case and in law, the Ld. CIT(A) is justified in not upholding the disallowance u/s 14A read with rule 8D of the Income Tax Act, 1961 amounting to Rs. 10,86,07,784/- without considering ratio decidendi as upheld in cases of CIT vs Walfort Share and Stock Brokers P Ltd. [2010] 326 ITR 1 (SC) and Max…

DCIT Central Circle -II, Gurgaon vs. Orient Craft Ltd., New Delhi

ITA 5040/DEL/2019[2016-17]Status: DisposedITAT Delhi24 Sept 2021AY 2016-17

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 14ASection 14A(1)Section 153DSection 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND Dr. B.R.R. KUMAR, ACCOUNTANT MEMBER I.T.A. No.3313/DEL/2019 Assessment Year: 2013-2014 Orient Craft Ltd., C/O vs. DCIT, Central Circle-II, RRA Tax India D-28, Gurgaon. South Extn. Part-I, New Delhi. TAN/PAN: AAACO0068M (Appellant) (Respondent) I.T.A. No.5040/DEL/2019 Assessment Year: 2013-2014 DCIT, Central Circle-II, Orient Craft Ltd., Gurgaon. vs. C/O RRA Tax India D-28, South Extn. Part-I, New Delhi. TAN/PAN: AAACO0068M (Appellant) (Respondent) Appellant by: Dr. Rakesh Gupta, Adv. Respondent by: M…

DCIT Central Circle -II, Gurgaon vs. Orient Craft Ltd., New Delhi

Appeal is dismissed

ITA 5039/DEL/2019[2015-16]Status: DisposedITAT Delhi24 Sept 2021AY 2015-16

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 153A

…hether on the facts and in the circumstances of the case and in law the Ld. CIT(A) is Justified in deleting the addition made on account of section 14A of the Act without appreciating the judgment of Hon'ble Supreme Court in CIT v. Rajendra Prasad Moody [1978]115 ITR 519(SC) which held that the allowability (or otherwise) of an expenditure would not depend upon whether it has in fact resulted in income, and that the mere fact that expenditure stands incurred for the purpose is sufficient for its admissibility, and whether the ratio of this Judgment can be applied to say, by the same analogy, that the expenditure…

DCIT Central Circle -II, Gurgaon vs. Orient Craft Ltd., New Delhi

ITA 5038/DEL/2019[2014-15]Status: DisposedITAT Delhi24 Sept 2021AY 2014-15

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 153ASection 28Section 45(2)

…hether on the facts and in the circumstances of the case and in law the Ld. CIT(A) is justified in deleting the addition made on account of section 14A of the Act without appreciating the judgment of Hon'ble Supreme Court in CIT v. Rajendra Prasad Moody [1978]115 ITR 519(SC) which held that the allowability (or otherwise) of an expenditure would not depend upon whether it has in fact resulted in an income, and that the mere fact that expenditure stands incurred for the purpose is sufficient for its admissibility, and whether the ratio of this judgment can be applied to say, by the same analogy, that the expenditu…

DCIT Central Circle -II, Gurgaon vs. Orient Craft Ltd., New Delhi

ITA 5037/DEL/2019[2013-14]Status: DisposedITAT Delhi24 Sept 2021AY 2013-14

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 14ASection 14A(1)Section 43(5)

…ether on the facts and in the circumstances of the case and in law the Ld. CIT (A) is justified in deleting the addition made on account of section 14Aof the Act without appreciating the judgment of Hon'ble Supreme Court in CIT v. Rajendra Prasad Moody [1978] 115 ITR 519(SC) which held that the allowability (or otherwise) of an expenditure would not depend upon whether it has in fact resulted in an income, and that the mere fact that expenditure stands incurred for the purpose is sufficient for its admissibility, and whether the ratio of this judgment can be applied to say, by the same analogy, that the expenditu…

Orient Craft Ltd., New Delhi vs. DCIT Central Circle -II, Gurgaon

ITA 3313/DEL/2019[2016-17]Status: DisposedITAT Delhi24 Sept 2021AY 2016-17

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 14ASection 14A(1)Section 43(5)

…ether on the facts and in the circumstances of the case and in law the Ld. CIT (A) is justified in deleting the addition made on account of section 14Aof the Act without appreciating the judgment of Hon'ble Supreme Court in CIT v. Rajendra Prasad Moody [1978] 115 ITR 519(SC) which held that the allowability (or otherwise) of an expenditure would not depend upon whether it has in fact resulted in an income, and that the mere fact that expenditure stands incurred for the purpose is sufficient for its admissibility, and whether the ratio of this judgment can be applied to say, by the same analogy, that the expenditu…

Orient Craft Ltd., New Delhi vs. DCIT Central Circle -II, Gurgaon

Appeal is dismissed

ITA 3312/DEL/2019[2015-16]Status: DisposedITAT Delhi24 Sept 2021AY 2015-16

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 153A

…hether on the facts and in the circumstances of the case and in law the Ld. CIT(A) is Justified in deleting the addition made on account of section 14A of the Act without appreciating the judgment of Hon'ble Supreme Court in CIT v. Rajendra Prasad Moody [1978]115 ITR 519(SC) which held that the allowability (or otherwise) of an expenditure would not depend upon whether it has in fact resulted in income, and that the mere fact that expenditure stands incurred for the purpose is sufficient for its admissibility, and whether the ratio of this Judgment can be applied to say, by the same analogy, that the expenditure…

Orient Craft Ltd., New Delhi vs. DCIT Central Circle -II, Gurgaon

ITA 3311/DEL/2019[2014-15]Status: DisposedITAT Delhi24 Sept 2021AY 2014-15

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 153ASection 28Section 45(2)

…hether on the facts and in the circumstances of the case and in law the Ld. CIT(A) is justified in deleting the addition made on account of section 14A of the Act without appreciating the judgment of Hon'ble Supreme Court in CIT v. Rajendra Prasad Moody [1978]115 ITR 519(SC) which held that the allowability (or otherwise) of an expenditure would not depend upon whether it has in fact resulted in an income, and that the mere fact that expenditure stands incurred for the purpose is sufficient for its admissibility, and whether the ratio of this judgment can be applied to say, by the same analogy, that the expenditu…

Orient Craft Ltd., New Delhi vs. DCIT Central Circle -II, Gurgaon

ITA 3310/DEL/2019[2013-14]Status: DisposedITAT Delhi24 Sept 2021AY 2013-14

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 14ASection 14A(1)Section 43(5)

…ether on the facts and in the circumstances of the case and in law the Ld. CIT (A) is justified in deleting the addition made on account of section 14Aof the Act without appreciating the judgment of Hon'ble Supreme Court in CIT v. Rajendra Prasad Moody [1978] 115 ITR 519(SC) which held that the allowability (or otherwise) of an expenditure would not depend upon whether it has in fact resulted in an income, and that the mere fact that expenditure stands incurred for the purpose is sufficient for its admissibility, and whether the ratio of this judgment can be applied to say, by the same analogy, that the expenditu…

Indus Mobile Distribtion Pvt. Ltd., Chennai vs. ACIT Central Circle 1(1), Chennai

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

ITA 915/CHNY/2019[2011-12]Status: DisposedITAT Chennai16 Sept 2021AY 2011-12

Bench: Shri Duvvuru Rl Reddy & Shri G. Manjunathaआयकर अपील सं./I.T.A. No. 915/Chny/2019 िनधा"रण वष"/Assessment Year: 2011-12 M/S. Indus Mobile Distribution Pvt. Ltd., The Assistant Commissioner Of No. 281, Ttk Road, Alwarpet, Vs. Income Tax, Central Circle 1(1), Chennai 600 018. Chennai. [Pan:Aabci6304D] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri B. Ramakrishnan, C.A. ""थ" की ओर से/Respondent By : Shri G. Johnson, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 01.09.2021 घोषणा की तारीख /Date Of Pronouncement : 16.09.2021 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 13, Chennai, Dated 22.11.2017 Relevant To The Assessment Year 2011-12. The Effective Grounds Raised In The Appeal Relate To Confirmation Of Disallowance Of Depreciation On Trademark & Confirmation Of Disallowance Of Advertisement Expenditure & Professional Charges.

For Appellant: Shri B. Ramakrishnan, C.AFor Respondent: Shri G. Johnson, Addl. CIT

…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 523): "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 expendi ture must be debited irrespective of whether there is receipt of income or not. That is the plain requireme…