CIT v. Sales Magnesite (P) Ltd.

214 ITR 1High Court1995#2970 most cited

What is CIT v. Sales Magnesite (P) Ltd. authority for?

Expenditure incurred for obtaining a loan is deductible as revenue expenditure if it is for commercial expediency, assessed from a businessman's point of view.

40

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2024.

Also referred to as

CIT v. Sales Magnesite (P) Ltd. · commercial expediency · revenue expenditure · capital expenditure · businessman's point of view · section 37 · loan expenditure · interest on borrowing

Also reported as

81 Taxmann 334

Sections most often in play

Section 143(3)Section 194ASection 37Section 40(a)(ia)Section 56

Issues it is cited on

commercial expediencycapital expendituresection 37section 143transferprescribedcompanysection 14section 143(3)indiabusinessperson

Judgments citing CIT v. Sales Magnesite (P) Ltd.

At & T Communication Services India Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

Appeal stands dismissed

ITA 1015/DEL/2015[2008-09]Status: DisposedITAT Delhi26 Mar 2019AY 2008-09

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year: 2008-09 At&T Communication Services Acit, India Pvt. Ltd., Circle-3(2), Vatika Triangle, 3Rd Floor, New Delhi. Vs Sushant Lok-1, Block-A, Gurgaon-122002 (Pan: Aacca8033E) Appellant Respondent Assessment Year: 2008-09 Acit, At&T Communication Services Circle-3(2), India Pvt. Ltd., Room No. 380B, Mohan Dev House, Vs Dc.R. Building, 13, Tolstoy Marg, I.P. Estate, New Delhi-110001 New Delhi. (Pan: Aacca8033E) Appellant Respondent

For Appellant: Ms Poonam Ahuja, CAFor Respondent: Shri Sanjay Bara, CIT DR
Section 153(1)Section 40

…ification of the expenditure so incurred. Reliance in this regard is placed on the following judicial precedents furnished by the assessee: i. CIT v. Panipat Woollen & General Mills Co Ltd (103 ITR 66) (Supreme Court) ii. CIT v. Sales Magnesite (P) Ltd [1995) 214 ITR 1 iii. Binodiram Balchand vs. Commissioner of Income Tax (48 1TR 548) iv. Calcutta Landing and Shipping Co Ltd vs. CIT (65 ITR 1) (Cal High Court) v. CIT Vs B Dalmia Cement Ltd (254 ITR 377) ITA 1015 & 1779/D/2015 Assessment year 2008-09 76. Respectfully following the principles laid down in the aforesaid judicial precedents, we find that where the…

DCIT Cir 3(3)(1), Mumbai vs. Anil Dhirajlal Ambani, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3676/MUM/2016[2011-12]Status: DisposedITAT Mumbai23 Mar 2018AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm Dcit – Circle 3(3)(1) Vs. Shri Anil Dhirajlal Ambani Room No.609, 39, Sea Wind 6Th Floor Cuffe Parade Aayakar Bhavan Colaba, M.K.Road, Mumbai – 400 005 Mumbai – 400 020 Pan/Gir No. Aad[A3703D Appellant) Respondent) ..

Section 143(1)Section 143(2)Section 143(3)Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL “G ”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH, JM DCIT – Circle 3(3)(1) Vs. Shri Anil Dhirajlal Ambani Room No.609, 39, Sea Wind 6th Floor Cuffe Parade Aayakar Bhavan Colaba, M.K.Road, Mumbai – 400 005 Mumbai – 400 020 PAN/GIR No. AAD[A3703D Appellant) Respondent) .. Revenue by Shri Abhijit Patankar Assessee by Shri Arvind Sonde Date of Hearing 02/01/2018 Date of Pronouncement 23/03/2018 आदेश / O R D E R PER R.C.SHARMA (A.M): This is an appeal filed by the Revenue against the order of CIT(A)- 8, Mumbai dated 25/02/2016 for A.Y.2011-12 in the matter…

Oil Field Instrumentation (India) Pvt. Ltd., Mumbai vs. Addl. CIT RG. 1(2) & CIT (OSD), Mumbai

ITA 2233/MUM/2016[2011-12]Status: DisposedITAT Mumbai28 Feb 2018AY 2011-12

Bench: Shrir. C. Sharma, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 2233/Mum/2016 (निर्धारणवर्ा / Assessment Year:2011-12)

For Appellant: Sh. M. C. OmiFor Respondent: Dr. K. Shivaram & Shri
Section 143(3)Section 14ASection 32(1)Section 32(1)(iia)Section 40A(2)

…the purpose of the business. In the case of case J. K. Wollen Manufacturers Vrs. CIT (1972) 72 ITR 612 (SC), it is held that commercial expediency should be seen from the businessman’s point of view and in the case of CIT Vrs. Sales Magnesite (P) Ltd. (1995) 214 ITR 1 (Bom HC), it is held that where the director was assessed to tax at the maximum marginal rate and there is no evasion of tax by the assessee, then there is no reason for disallowance. As per the facts of the present case, the Ld. CIT(A) has observed that Mr. F. D. Netrawala to whom the retainership fee has paid, is assessed to tax at the maximum ma…

Rajasayee Fine Linen Private Limited, Chennai vs. DCIT, Coimbatore

In the result, the assessee’s appeal is treated as allowed for

ITA 1034/CHNY/2017[2012-13]Status: DisposedITAT Chennai15 Feb 2018AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri.Vijayaraghavan, AdvocateFor Respondent: Shri. ARV Sreenivasan, JCIT
Section 37

…आयकर अपील"य अ"धकरण ,’ए’ "यायपीठ,चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI "ी एन . एस . आर . गणेशन, "या"यक सद"य एवं"ी एस जयरामन, लेखा सद"य केसम# BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER आयकर अपील सं/.I.T.A. No. 1034/Chny/2017 "नधा"रण वष"/Assessment Year : 2012-13 M/s. Rajasayee Fine Linen Private The Deputy Commissioner of Income Limited, Vs. Tax, 125, Pappampatti Road, Corporate Circle -1, Chinthamanipudur, Income Tax Office, Coimbatore – 641 103. Coimbatore. [PAN: AACCR 7869P] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ%क&ओरसे/Appellant by : S…

ACIT, Circle-4(1), Visakhapatnam vs. Sri Varalakshmi Jute Twine Mills Pvt. Ltd, Rajam

In the result, appeals filed by the Revenue in ITA

ITA 458/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…e ground of commercial expediency and in order indirectly to facilitate the carrying on of the business may yet be expended wholly and exclusively for the purpose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Panipat Woolen & General Mills Co. Ltd. 103 ITR 66 SC; CIT vs. Associated Electrical Agencies 266 ITR 63 (Mad); Udaipur Distillery Co. Ltd. 224 CTR 32 SC; Adidas India Marketing P Ltd. 10 Taxmann.com 18. It was contended that expediency of the expenditure is not for the Revenue to consider and relied on the decision of Hon'ble Madras High…

Sri Varalakshmi Jute Twine Mills Private Limited, Rajam vs. DCIT, Circle-4(1), Visakhapatnam

In the result, appeals filed by the Revenue in ITA

ITA 404/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…e ground of commercial expediency and in order indirectly to facilitate the carrying on of the business may yet be expended wholly and exclusively for the purpose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Panipat Woolen & General Mills Co. Ltd. 103 ITR 66 SC; CIT vs. Associated Electrical Agencies 266 ITR 63 (Mad); Udaipur Distillery Co. Ltd. 224 CTR 32 SC; Adidas India Marketing P Ltd. 10 Taxmann.com 18. It was contended that expediency of the expenditure is not for the Revenue to consider and relied on the decision of Hon'ble Madras High…

Sri Varalakshmi Jute Twine Mills Pvt. Ltd., Rajam vs. The ITO, Srikakulam

In the result, appeals filed by the Revenue in ITA

ITA 349/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…e ground of commercial expediency and in order indirectly to facilitate the carrying on of the business may yet be expended wholly and exclusively for the purpose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Panipat Woolen & General Mills Co. Ltd. 103 ITR 66 SC; CIT vs. Associated Electrical Agencies 266 ITR 63 (Mad); Udaipur Distillery Co. Ltd. 224 CTR 32 SC; Adidas India Marketing P Ltd. 10 Taxmann.com 18. It was contended that expediency of the expenditure is not for the Revenue to consider and relied on the decision of Hon'ble Madras High…

The DCIT, Visakhapatnam vs. Sri Varalakshmi Jute Mills Pvt Ltd, Srikakulam

In the result, appeals filed by the Revenue in ITA

ITA 340/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…e ground of commercial expediency and in order indirectly to facilitate the carrying on of the business may yet be expended wholly and exclusively for the purpose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Panipat Woolen & General Mills Co. Ltd. 103 ITR 66 SC; CIT vs. Associated Electrical Agencies 266 ITR 63 (Mad); Udaipur Distillery Co. Ltd. 224 CTR 32 SC; Adidas India Marketing P Ltd. 10 Taxmann.com 18. It was contended that expediency of the expenditure is not for the Revenue to consider and relied on the decision of Hon'ble Madras High…

M/S. at & T Global Network Services (India) Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed and appeal of the revenue is dismissed

ITA 2538/DEL/2014[2009-10]Status: DisposedITAT Delhi18 Sept 2017AY 2009-10

Bench: Shri I.C.Sudhir & Shri Prashant Maharishiat & T Global Network Services Dcit, (India) Pvt Ltd., Circle-2(1), Vs. Vatika Lok-1, Block-A, Gurgaon New Delhi Pan:Aafca8810L (Appellant) (Respondent) Dcit, At & T Global Network Services Circle-2(1), (India) Pvt Ltd., Vs. New Delhi Vatika Lok-1, Block-A, Gurgaon Pan:Aafca8810L (Appellant) (Respondent)

For Appellant: Shri Kanchan Kaushal, CAFor Respondent: Shri N C Swain CIT DR
Section 143(3)Section 144CSection 144C(5)Section 32Section 36

…m the point of view of the businessman and not of the income-tax department. It is well settled that the court in order to construe on agreement has to look to the substance or the essence of it rather than to its form." -CIT v. Sales Magnesite (P) Ltd [1995) 214 ITR 1 "To hold it to be an expenditure allowable as a deduction under section 37, it is not essential that it should be necessary, legally or otherwise, to incur the same or that it should directly and immediately benefit the business of the assessee. Even expenditure incurred voluntarily on the ground of commercial expediency and in order indirectly to…

Sh. Sushil Kumar, Karnal vs. ITO, New Delhi

In the result, appeal of the assessee is dismissed

ITA 6763/DEL/2013[2009-10]Status: DisposedITAT Delhi09 Jun 2017AY 2009-10

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2009-10 Vs. Income Tax Officer, Ward -21(3), Sh. Sushil Kumar, H. No. 145, Sector – 14, Karnal New Delhi Pan : Aaspk5603R (Appellant) (Respondent) Appellant By Ms. Pallavi Goel, Ca Respondent By Sh. Umesh Chand Dubey, Sr.Dr Date Of Hearing 22.05.2017 Date Of Pronouncement 09.06.2017 Order Per O.P. Kant, A.M.: This Appeal By The Assessee Is Directed Against Order Dated 26/09/2013 Of The Ld. Commissioner Of Income-Tax (Appeals)-Xxii, New Delhi [In Short “The Cit-(A)”] For Assessment Year 2009-10, Raising Following Grounds:

Section 143(2)Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘D’, NEW DELHI BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2009-10 Vs. Income Tax Officer, Ward -21(3), Sh. Sushil Kumar, H. No. 145, Sector – 14, Karnal New Delhi PAN : AASPK5603R (Appellant) (Respondent) Appellant by Ms. Pallavi Goel, CA Respondent by Sh. Umesh Chand Dubey, Sr.DR Date of hearing 22.05.2017 Date of pronouncement 09.06.2017 ORDER PER O.P. KANT, A.M.: This appeal by the assessee is directed against order dated 26/09/2013 of the Ld. Commissioner of Income-tax (Appeals)-XXII, New Delhi [in short “the C…

DCIT 19(3), Mumbai vs. Wadhwa Constructions, Mumbai

The appeal of the Revenue is dismissed

ITA 4470/MUM/2013[2008-09]Status: DisposedITAT Mumbai05 Apr 2017AY 2008-09
Section 2Section 271(1)(c)

…should not come in the way of an expenditure being allowed by way of deduction u/s 10(2)(xv) of the Act if it satisfies otherwise the tests laid down by law. (Emphasis Supplied). Likewise Hon'ble Jurisdictional High Court in CIT vs Sales Magnesite (Pvt) Ltd. 214 ITR 1 (Born) identically observed / held as under: "We have carefully considered the facts of the case. We have also noted the finding of the Tribunal that the payment made by the assessee to its sole selling agents as compensation for termination of the sole selling agency was a business expenditure which was incurred by the assessee after proper consid…

Kotak Securities Ltd, Mumbai vs. Addl CIT RG 4(3), Mumbai

ITA 3494/MUM/2010[2007-08]Status: DisposedITAT Mumbai22 Feb 2017AY 2007-08

Bench: S/Shri Rajendra, A.M. & Sanjay Garg,J.M. आयकर अपील सं आयकर अपील सं././././Ita No. 3494/Mum/2010,िनधा"रण आयकर अपील सं आयकर अपील सं िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2007-08 वष" Kotak Securities Limited Addl. Cit 1St Floor, Bakthawar Range-4(3), Aayakar Bhavan Vs. 229 Nariman Point,Mumbai-400 021. Mumbai-400 020. Pan: Aaack 3436 F (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri Pavan Kumar Beerla Assessee By: Shri F.V. Irani सुनवाई क" तारीख / Date Of Hearing: 18.01.2017 घोषणा क" तारीख / Date Of Pronouncement: 22.02.2017 आयकर अिधिनयम आयकर अिधिनयम,1961 क" क" धारा धारा 254(1)के अ"तग"त आदेश के अ"तग"त आदेश आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा के अ"तग"त आदेश के अ"तग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य,राजे"" के अनुसार लेखा सद"य राजे"" के अनुसार -Per Rajendra,Am: लेखा सद"य लेखा सद"य राजे"" के अनुसार राजे"" के अनुसार Challenging The Order Dt. 17.03.2010 Of Cit(A)-8,Mumbai The Assessee Has Filed The Present Appeal.Assessee-Company,A Share Broker, Filed Its Return Of Income On 31.10.2007 Declaring Its Total Income Of Rs.390.03 Crores.The Assessing Officer(Ao) Completed Assessment On 30. 03.2009,Determining Its Income At Rs.401.55 Crores.

For Appellant: Shri F.V. IraniFor Respondent: Shri Pavan Kumar Beerla
Section 14ASection 254(1)Section 36(1)(vii)

…ed to come out of the adverse publicity given to the incident by the local newspapers, that the payment made by the assessee was not excessive.The AR relied upon the f cases of Nainital Bank Ltd.(62ITR638); F.E.Dinshaw Ltd.(36ITR114);Sales Magnesite Pvt.Ltd. (214 ITR 1),Eastern Investments Ltd. (20ITR1);Sasson J. David and Co. Pvt.Ltd.(118 ITR 261);F.M. Chinoy and Co. Pvt.Ltd. (74 ITR780);Glaxo Laboratories(India)Pvt.Ltd.(114ITR110);Dhanrajgiri Raja Narasingirji (91 ITR 544);Tata sons Ltd.(18 ITR 460);Delhi Safe Deposit Co.Ltd.(133ITR756) and Walchand and Co. Pvt. Ltd.(65ITR381(SC).The DR relied upon the order of…

DCIT 4(2)(1), Mumbai vs. Pranav Securities P.Ltd, Mumbai

The appeal of the revenue stands dismissed

ITA 1144/MUM/2015[2011-12]Status: DisposedITAT Mumbai20 Dec 2016AY 2011-12

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am)

For Appellant: Ms.Mahua Sarkar
Section 143(1)Section 143(2)Section 143(3)Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI श्री जोगगिंदर स िंह, न्याययक दस्य एविं श्री राजेश कुमार, ऱेखा दस्य के मक्ष BEFORE HON’BLE S/SHRI JOGINDER SINGH (JM), AND RAJESH KUMAR,(AM) I.T.A. No.1144/Mum/2015 (Assessment Year :2011-12) Dy. Commissioner of Income Vs. M/s Pravav Securities Pvt Ltd, Tax-4(2)(1), 17, B ½, Raja Bahadur Mansion, Room No.642, Ambalal Doshi Marg, 6th floor, Aayakar Bhavan, Fort, M K Road, Mumbai-400023 Mumbai-400020 (Appellant) .. ( Respondent) PAN No. :AABCP4651L Appellant by: Ms.Mahua Sarkar Respondent by Shri B B Jokhakar Date of Hearing : 28.11.2016 Date of Pronouncem…

Dy.CIT., -8(1), Mumbai vs. E-City Projects Construction Pvt.Ltd., Mumbai

In the result, appeal of revenue is dismissed whereas appeal of assessee is allowed

ITA 1437/MUM/2012[2008-09]Status: DisposedITAT Mumbai19 Oct 2016AY 2008-09
For Appellant: Shri H.N.SinghFor Respondent: Shri Vijay Mehta
Section 143(3)Section 36

…he purpose of its business, therefore as a matter of commercial expediency, interest on share application money so utilized for the purpose of business is required to be allowed as business expenditure. Hon'ble Bombay High Court in the case of Sales Magnesite 214 ITR 1 held that even expenditure incurred voluntarily on the ground of commercial expediency to facilitate carrying on the business would be deductible under section 37. So far as deductibility of interest even pertaining to earlier years is concerned we found that interest was crystallized only during the year under consideration, therefore same is allo…

E-City Projects Construction P.Ltd, Mumbai vs. DCIT OSD 8(1), Mumbai

In the result, appeal of revenue is dismissed whereas appeal of assessee is allowed

ITA 1258/MUM/2012[2008-09]Status: DisposedITAT Mumbai19 Oct 2016AY 2008-09
For Appellant: Shri H.N.SinghFor Respondent: Shri Vijay Mehta
Section 143(3)Section 36

…he purpose of its business, therefore as a matter of commercial expediency, interest on share application money so utilized for the purpose of business is required to be allowed as business expenditure. Hon'ble Bombay High Court in the case of Sales Magnesite 214 ITR 1 held that even expenditure incurred voluntarily on the ground of commercial expediency to facilitate carrying on the business would be deductible under section 37. So far as deductibility of interest even pertaining to earlier years is concerned we found that interest was crystallized only during the year under consideration, therefore same is allo…

Stovec Industries Ltd, Gujrat vs. Addl CIT RG 2(3), Mumbai

The appeal of the AO is dismissed

ITA 2812/MUM/2013[2007-08]Status: DisposedITAT Mumbai24 Aug 2016AY 2007-08

Bench: S/Shri Rajendra & C.N. Prasadआयकर आयकर अपील अपील संसंसंसं./Ita/2812/Mum/2013,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2007-08 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" M/S. Stovec Industries Ltd. Addl.Cit, Range- 2(3) Room No.555, 5Th Floor Nidc, Nr. Lambha Village Post Narol, Ahmedabad Vs. Aayakar Bhavan Gujarat-382 405. Mumbai-20. Pan:Aabcs 7223 D आयकर आयकर आयकर अपील आयकर अपील अपील संसंसंसं./Ita/2449/Mum/2013,िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2007-08 वष" Addl.Cit, Range- 2(3) M/S. Stovec Industries Ltd. Vs. Mumbai-20. Gujarat-382 405. (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By:Shri N. Sathya Moorthy-Dr Assessee By: S/Shri Dhanesh Bafna & Ravi Sawana सुनवाई क" तारीख / Date Of Hearing: 11.07.2016 घोषणा क" तारीख / Date Of Pronouncement: 24.08.2016 आयकर अिधिनयम आयकर अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य लेखा सद"य राजे"" राजे"" केकेकेके अनुसार अनुसार Per Rajendra, Am- लेखा लेखा सद"य सद"य राजे"" राजे"" अनुसार अनुसार Challenging The Order Dated 29.01.13 Of Cit(A)-6, Mumbai The Assessing Officer (Ao) & The Assessee Have Filed The Cross-Appeals For The Year Under Consideration.Assessee-Company, Engaged In The Business Of Manufacturing Of Rotary Screens Etc.Filed Its Return Of Income On 31. 10.2007,Declaring Income Of Rs.5.52 Crores. The Ao Completed The Assessment On 18.12.09 U/S. 143(3)Of The Act,Determining Income Of The Assessee At Rs.8,88,79,430/- .

For Appellant: S/Shri Dhanesh Bafna & Ravi SawanaFor Respondent: Shri N. Sathya Moorthy-DR
Section 143(3)Section 254(1)

…for the purpose of business, that the assessee had hived off graphic division to third party, that it was a commercial decision and was taken in the common interest of business. He relied upon the cases of Ashok Leyland Ltd(86ITR549),Sales Magnesite(P.) Ltd (214 ITR 1),Life Insurance Corporation of India (119 ITR 900) and refer to the pages 110-114 and 122 of the paper book. The DR supported the order of the FAA. 3.3.We have heard the rival submissions and perused the material before us. We find that the assessee had entered into sole selling agreement with ATEMPL for sale of its products namely IMD products, S…

ACIT 2(3), Mumbai vs. Stovec Industries Ltd, Ahemedabad

The appeal of the AO is dismissed

ITA 2449/MUM/2013[2007-08]Status: DisposedITAT Mumbai24 Aug 2016AY 2007-08

Bench: S/Shri Rajendra & C.N. Prasadआयकर आयकर अपील अपील संसंसंसं./Ita/2812/Mum/2013,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2007-08 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" M/S. Stovec Industries Ltd. Addl.Cit, Range- 2(3) Room No.555, 5Th Floor Nidc, Nr. Lambha Village Post Narol, Ahmedabad Vs. Aayakar Bhavan Gujarat-382 405. Mumbai-20. Pan:Aabcs 7223 D आयकर आयकर आयकर अपील आयकर अपील अपील संसंसंसं./Ita/2449/Mum/2013,िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2007-08 वष" Addl.Cit, Range- 2(3) M/S. Stovec Industries Ltd. Vs. Mumbai-20. Gujarat-382 405. (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By:Shri N. Sathya Moorthy-Dr Assessee By: S/Shri Dhanesh Bafna & Ravi Sawana सुनवाई क" तारीख / Date Of Hearing: 11.07.2016 घोषणा क" तारीख / Date Of Pronouncement: 24.08.2016 आयकर अिधिनयम आयकर अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य लेखा सद"य राजे"" राजे"" केकेकेके अनुसार अनुसार Per Rajendra, Am- लेखा लेखा सद"य सद"य राजे"" राजे"" अनुसार अनुसार Challenging The Order Dated 29.01.13 Of Cit(A)-6, Mumbai The Assessing Officer (Ao) & The Assessee Have Filed The Cross-Appeals For The Year Under Consideration.Assessee-Company, Engaged In The Business Of Manufacturing Of Rotary Screens Etc.Filed Its Return Of Income On 31. 10.2007,Declaring Income Of Rs.5.52 Crores. The Ao Completed The Assessment On 18.12.09 U/S. 143(3)Of The Act,Determining Income Of The Assessee At Rs.8,88,79,430/- .

For Appellant: S/Shri Dhanesh Bafna & Ravi SawanaFor Respondent: Shri N. Sathya Moorthy-DR
Section 143(3)Section 254(1)

…for the purpose of business, that the assessee had hived off graphic division to third party, that it was a commercial decision and was taken in the common interest of business. He relied upon the cases of Ashok Leyland Ltd(86ITR549),Sales Magnesite(P.) Ltd (214 ITR 1),Life Insurance Corporation of India (119 ITR 900) and refer to the pages 110-114 and 122 of the paper book. The DR supported the order of the FAA. 3.3.We have heard the rival submissions and perused the material before us. We find that the assessee had entered into sole selling agreement with ATEMPL for sale of its products namely IMD products, S…

Phl Pharma Pvt. Ltd., Mumbai vs. D.C.I.T. Cir.8(2), Mumbai

The appeal of the assessee is partly allowed

ITA 5970/MUM/2012[2008-09]Status: DisposedITAT Mumbai29 Jul 2016AY 2008-09

Bench: S/Sh.Rajendra & Pawan Singhआयकर अपील आयकर अपील संसंसंसं./I.T.A./5970/Mum/2012,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2008-09 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Pizi Marketing Services Pvt. Ltd. Dcit , Circle-8(2) Aayakar Bhavan, 2Nd Floor, M.K. Road (Formerly Known As Phl Pharma Pvt. Ltd.) Piramal Tower, Ganpatrao Kadam Marg, Vs. Mumbai-400 020. Lower Parel,Mumbai-400 013. Pan:Aaccn 5346 B आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं./I.T.A./6084/Mum/2012,िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2008-09 वष" Dcit , Circle-8(2) Pizi Marketing Services Pvt. Ltd. (Formerly Known As Phl Pharma Pvt. Ltd.), Mumbai-400 020. Vs. Mumbai-400 013. (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By:S/Shri M. Dayasagar-Cit-Dr & Vijay Kumar-Dr Assessee By: Shri Yogesh Thar सुनवाई क" तारीख / Date Of Hearing: 28.06.2016 घोषणा क" तारीख / Date Of Pronouncement: 29.07.2016 आयकर आयकर आयकर अिधिनयम आयकर अिधिनयम अिधिनयम,1961 क" अिधिनयम क" क" धारा क" धारा धारा 254(1)केकेकेके अ"तग"त धारा अ"तग"त अ"तग"त आदेश अ"तग"त आदेश आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा लेखा सद"य लेखा लेखा सद"य सद"य राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार Per Rajendra, Am- अनुसार Challenging The Order,Dated 27/07/2012,Of The Cit(A)-17,Mumbai The Assessee & The Assessing Officer(Ao)Have Filed Cross-Appeals For The Year Under Consideration.Assessee- Company,Engaged In The Business Of Consultancy & Detailing Services,Filed Its Return Of Income On 29/09/2008,Declaring A Loss Of Rs.34.73 Crores.The Ao Completed The Assessment On 27/12/2010,U/S.143(3) Of The Act,Determining The Income Of The Assessee At Loss Of Rs. 10,00,82,110/-.

For Appellant: Shri Yogesh TharFor Respondent: S/Shri M. Dayasagar-CIT-DR and Vijay Kumar-DR
Section 143(3)Section 194CSection 254(1)Section 40

…आयकर आयकर आयकर अपीलीय आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, मुंबई अिधकरण मुंबई मुंबई “सी मुंबई सी सी” खंडपीठ सी खंडपीठ खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“C”Bench Mumbai सव"ी राजे"",लेखा सद"य एवं पवन"सह,"याियक सद"य Before S/Sh.Rajendra,Accountant Member and Pawan Singh,Judicial Member आयकर अपील आयकर अपील संसंसंसं./I.T.A./5970/Mum/2012,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2008-09 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" PIZI Marketing Services Pvt. Ltd. DCIT , Circle-8(2) Aayakar Bhavan, 2nd floor, M.K. Road (formerly known as PHL Pharma Pvt. Ltd.) Piramal Tower, Ganpatrao Kadam Marg,…

The ACIT Cen Cir 17 & 28, Mumbai vs. M/S. J.B. Boda & Co. Pvt. Ltd, Mumbai

In the result, the appeal filed by the assessee is partly allowed and the appeal filed by the Revenue is dismissed

ITA 4107/MUM/2007[2003-2004]Status: DisposedITAT Mumbai27 May 2016AY 2003-2004

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaआयकर अपील सं /I.Ta No. 4022/Mum/2007 ("नधा"रण वष" / Assessment Year: 2003-04 M/S. J.B. Boda & Co. Pvt. The Acit, Cc-17 & 28, बनाम/ Ltd., Aayakar Bhavan, Vs. Maker Bhavan, Mumbai 1, Sir V.T. Marg, Mumbai-400 020 आयकर अपील सं /I.Ta No. 4107/Mum/2007 ("नधा"रण वष" / Assessment Year: 2003-04 The Acit, Cc-17 & 28, M/S. J.B. Boda & Co. Pvt. Ltd., बनाम/ Aayakar Bhavan, Maker Bhavan, Vs. Mumbai 1, Sir V.T. Marg, Mumbai-400 020

For Appellant: Shri P.J. PardiwallaFor Respondent: Shri Ashish Heliwal
Section 143(3)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ , मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “J” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER आयकर अपील सं /I.TA No. 4022/Mum/2007 ("नधा"रण वष" / Assessment Year: 2003-04 M/s. J.B. Boda & Co. Pvt. The ACIT, CC-17 & 28, बनाम/ Ltd., Aayakar Bhavan, Vs. Maker Bhavan, Mumbai 1, Sir V.T. Marg, Mumbai-400 020 आयकर अपील सं /I.TA No. 4107/Mum/2007 ("नधा"रण वष" / Assessment Year: 2003-04 The ACIT, CC-17 & 28, M/s. J.B. Boda & Co. Pvt. Ltd., बनाम/ Aayakar Bhavan, Maker Bhavan, Vs. Mumbai 1, Sir V.T. Marg, Mumbai-400 020 "थायी लेखा स…

M/S. J B Boda & Co Pvt. Ltd, Mumbai vs. The ACIT CC 17 & 28, Mumbai

In the result, the appeal filed by the assessee is partly allowed and the appeal filed by the Revenue is dismissed

ITA 4022/MUM/2007[2003-2004]Status: DisposedITAT Mumbai27 May 2016AY 2003-2004

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaआयकर अपील सं /I.Ta No. 4022/Mum/2007 ("नधा"रण वष" / Assessment Year: 2003-04 M/S. J.B. Boda & Co. Pvt. The Acit, Cc-17 & 28, बनाम/ Ltd., Aayakar Bhavan, Vs. Maker Bhavan, Mumbai 1, Sir V.T. Marg, Mumbai-400 020 आयकर अपील सं /I.Ta No. 4107/Mum/2007 ("नधा"रण वष" / Assessment Year: 2003-04 The Acit, Cc-17 & 28, M/S. J.B. Boda & Co. Pvt. Ltd., बनाम/ Aayakar Bhavan, Maker Bhavan, Vs. Mumbai 1, Sir V.T. Marg, Mumbai-400 020

For Appellant: Shri P.J. PardiwallaFor Respondent: Shri Ashish Heliwal
Section 143(3)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ , मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “J” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER आयकर अपील सं /I.TA No. 4022/Mum/2007 ("नधा"रण वष" / Assessment Year: 2003-04 M/s. J.B. Boda & Co. Pvt. The ACIT, CC-17 & 28, बनाम/ Ltd., Aayakar Bhavan, Vs. Maker Bhavan, Mumbai 1, Sir V.T. Marg, Mumbai-400 020 आयकर अपील सं /I.TA No. 4107/Mum/2007 ("नधा"रण वष" / Assessment Year: 2003-04 The ACIT, CC-17 & 28, M/s. J.B. Boda & Co. Pvt. Ltd., बनाम/ Aayakar Bhavan, Maker Bhavan, Vs. Mumbai 1, Sir V.T. Marg, Mumbai-400 020 "थायी लेखा स…