CIT v. Sivakami Mills Ltd.

227 ITR 465Supreme Court of India1997#7059 most cited
16

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2008 to 2023.

Judgments citing CIT v. Sivakami Mills Ltd.

JAKHAU SALT COMPANY P LTD.,CHENNAI vs. DCIT, CORPORATE CIRCLE-1(1), CHENNAI

In the result, appeal filed by the assessee is allowed

ITA 367/CHNY/2022[2017-18]Status: DisposedITAT Chennai24 Feb 2023AY 2017-18

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha.G, Hon’Bleआयकरअपीलसं./Ita No.367/Chny/2022 िनधा"रणवष"/Assessment Year: 2017-18 V. M/S. Jakhau Salt Co. P. Ltd., The Dy. Commissioner – No.2, North Crescent Road, Of Income Tax, T. Nagar, Chennai-600 017. Corporate Circle-1(1), Chennai. [Pan:Aaacw 0867 G] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Mr.S.Sridhar, Adv. ""यथ" क" ओर से /Respondent By : Mr.S. Senthil Kumaran, Cit : सुनवाईक"तारीख/Date Of Hearing 09.01.2023 : घोषणाक"तारीख /Date Of Pronouncement 24.02.2023

For Appellant: Mr.S.Sridhar, AdvFor Respondent: Mr.S. Senthil Kumaran, CIT
Section 143(3)Section 263

…d, still the assessee would be entitled for deduction under s. 36(1)(iii) of the Act, in view of the decision of the Hon'ble Madras High Court in the case of Sivakami Mills Ltd. (supra), affirmed by the Hon'ble Supreme Court in (1998) 144 CTR (sc) 172: (1997) 227 ITR 465 (SC) (supra), wherein it was held that interest on deferred payment for purchase of machinery was revenue expenditure. The decision in State of Madras vs. G.J. Coelho (supra) also supports this view. In this case it was held that the payment of interest on the amount borrowed for the purchase of the plantation when the whole transaction of purcha…

M/S SOUTHERN TPETROCHEMICAL INDUSTRIES CORPRATION LIMITED,CHENNAI vs. ITO, CORPORATE WARD-3(1), CHENNAI

In the result, appeal filed by the assessee is allowed

ITA 232/CHNY/2022[2017-18]Status: DisposedITAT Chennai23 Sept 2022AY 2017-18

Bench: Shri V. Durga Rao, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकरअपीलसं./Ita No.232/Chny/2022 िनधा"रणवष"/Assessment Year: 2017-18 M/S.Southern Petrochemical V. The Income Tax Officer, Industries Corporation Ltd., Corporate Ward-3(1), 88, Spic House, Mount Road, Chennai. Guindy, Chennai-600 032. [Pan:Aaacs 4668 K] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.R.Vijayaraghavan, Adv. &
Section 115JSection 143Section 263

…d, still the assessee would be entitled for deduction under s. 36(1)(iii) of the Act, in view of the decision of the Hon'ble Madras High Court in the case of Sivakami Mills Ltd. (supra), affirmed by the Hon'ble Supreme Court in (1998) 144 CTR (sc) 172: (1997) 227 ITR 465 (SC) (supra), wherein it was held that interest on deferred payment for purchase of machinery was revenue expenditure. The decision in State of Madras vs. G.J. Coelho (supra) also supports this view. In this case it was held that the payment of interest on the amount borrowed for the purchase of the plantation when the whole transaction of purcha…

M/S.KRISHNA BHAGYA JALA NIGAM LTD,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(1), BANGALORE

In the result, the appeal of the assessee is allowed

ITA 3064/BANG/2018[2014-15]Status: DisposedITAT Bangalore10 Nov 2021AY 2014-15

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranassessment Year : 2014-15 M/S. Krishna Bhagya Jala Nigam Limited, Acit, Pwd Offices, Annexe, 3Rd Floor, K. R. Circle – 4(1)(1), Circle, Bengaluru – 560 001. Bengaluru. Pan : Aaack 5850 B

For Respondent: Shri. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 37Section 40Section 5(1)

…l be lost if it is levied from more than one State Government undertaking. (iii) Guarantee commission is a revenue expenditure and has to be allowed as deduction u/s.37 of the Act as held by the Hon’ble Supreme Court in the case of CIT Vs. Sivakami Mills Ltd. 227 ITR 465 (SC) and Hon’ble Andhra Pradesh High Court in the case of AP State Financial Corporation Vs. DCIT 372 ITR 315 (AP). Even after insertion of Sec.40(a)(iib) of the Act by the Fianance Act, 2013 w.e.f. 1.4.2014, to fall within the ambit of the said provision a payment should be in the nature of “royalty, licence fee, service fee, privilege fee, serv…

TAMILNADU TRANSMISSION CORPORATION LTD.,CHENNAI vs. ACIT CORPORATE CIRCLE 3(1), CHENNAI

In the result, the both the appeals filed by the assessee are allowed

ITA 1046/CHNY/2019[2015-16]Status: DisposedITAT Chennai28 Oct 2021AY 2015-16

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.1045 & 1046/Chny/2019 िनधा"रण वष" /Assessment Years: 2014-15 & 2015-16

For Appellant: Mr. R. VijayaraghavanFor Respondent: Mr. ARV. Sreenivasan
Section 37Section 37(1)

…आयकर अपीलीय अिधकरण, ‘ए’ "ायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI "ी वी दुगा" राव, "ाियक सद" एवं "ी जी मंजूनाथा, लेखा सद" के सम$ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1045 & 1046/Chny/2019 िनधा"रण वष" /Assessment Years: 2014-15 & 2015-16 M/s. Tamilnadu Transmission The Asst. Commissioner of Corporation Ltd., Income Tax, No.144, NPKRR Maligai, Anna Salai, Vs. Corporate Circle-3(1), Chennai – 600 002. Chennai. [PAN: AADCT 4780A] (&'थ(/Respondent) (अपीलाथ"/Appellant) अपीलाथ( की ओर से/ Appellant by : Mr. R. Vijayaraghavan…

TAMILNADU TRANSMISSION CORPORATION LTD.,CHENNAI vs. ACIT CORPORATE CIRCLE 3(1), CHENNAI

In the result, the both the appeals filed by the assessee are allowed

ITA 1045/CHNY/2019[2014-15]Status: DisposedITAT Chennai28 Oct 2021AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.1045 & 1046/Chny/2019 िनधा"रण वष" /Assessment Years: 2014-15 & 2015-16

For Appellant: Mr. R. VijayaraghavanFor Respondent: Mr. ARV. Sreenivasan
Section 37Section 37(1)

…आयकर अपीलीय अिधकरण, ‘ए’ "ायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI "ी वी दुगा" राव, "ाियक सद" एवं "ी जी मंजूनाथा, लेखा सद" के सम$ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1045 & 1046/Chny/2019 िनधा"रण वष" /Assessment Years: 2014-15 & 2015-16 M/s. Tamilnadu Transmission The Asst. Commissioner of Corporation Ltd., Income Tax, No.144, NPKRR Maligai, Anna Salai, Vs. Corporate Circle-3(1), Chennai – 600 002. Chennai. [PAN: AADCT 4780A] (&'थ(/Respondent) (अपीलाथ"/Appellant) अपीलाथ( की ओर से/ Appellant by : Mr. R. Vijayaraghavan…

THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. M/S. APOLLO TYRES LTD

Appeal is allowed in part as indicated

ITA/44/2017HC Kerala22 Sept 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE VIJU ABRAHAM

For Appellant: M/S. APOLLO TYRES LTDFor Respondent: THE PRINCIPAL COMMISSIONER OF INCOME TAX
Section 143(3)Section 144CSection 144C(5)Section 35Section 43ASection 92C

…court has held that com mission paid by the assessee to the banker and the insurance company was admissible deduction under section 37 of the Income-tax Act, 1961. To the same effect is the judgment of this court in the case CIT v. Sivakami Mills Ltd. [1997] 227 ITR 465. For the aforestated reasons, we answer question No. (1) in favour of the assessee and against the Department. We may 8 (2008) 299 ITR 85 (SC) 9 (2013) 33 taxmann.com 575 (Cochin-Trib.) ITA No.44/2017 -23- clarify that both the above judgments allow deduction under section 37 of the 1961 Act and not under section 36(1)(iii) of the 1961 Act. I…

BRACE IRON & STEEL P.LTD,NEW DELHI vs. ADDL.CIT, SPECIAL RANGE-2,, NEW DELHI

In the result, appeal of Assessee is allowed

ITA 8617/DEL/2019[2015-16]Status: DisposedITAT Delhi03 Aug 2021AY 2015-16

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Shri Lakshya Budhira, C.AFor Respondent: Shri Satpal Gulati, CIT-DR

…IFCI for availing of loan for purchase of machinery, then the same shall be allowable as a revenue expenditure in light of the decisions of the Hon’ble S.C, in Addl. CIT vs., Akkamamba Textiles Ltd., [1997] 227 ITR 464 and CIT vs., Sivakami Mills Ltd., [1997] 227 ITR 465. 8.3. Referring to the decision of the Hon’ble Supreme Court in the case of Commissioner of Income Tax vs., Rama Multi Tech Ltd., [2017] 80 taxmann.com 375 [SC] the Learned Counsel for the Assessee submitted that the Hon’ble Supreme Court in the said decision has opined that expenditure towards payment of interest on loans taken for setting up in…

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE -4(1)(1), BANGALORE vs. M/S. KARNATAKA STATE FINANCIAL CORPORATION, BANGALORE

In the result, the appeals of the Assessee are allowed while the appeal by the revenue is dismissed

ITA 1420/BANG/2019[2014-15]Status: DisposedITAT Bangalore04 Mar 2021AY 2014-15

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Respondent: Shri. Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 20Section 40Section 5(1)Section 7

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA Nos. and Appellant Respondent Assessment Year 1413/Bang/2019 M/s. Karnataka State ACIT, 2014-15 Financial Corporation, Circle – 4(1)(1), No.1/1 Thimmaiah Road, Bengaluru. Opp. to Cantonment Railway Station, Bengaluru – 560 052. PAN : AAACK 9480 H 1420/Bang/2019 ACIT, M/s. Karnataka State Financial 2014-15 Circle – 4(1)(1), Corporation, Bengaluru. Bengaluru – 560 052. PAN : AAACK 9480 H 3190/Bang/2018 M/s. Karnataka State DCIT, 2015-16 Financial Corporation, Circle…

M/S. KARNATAKA STATE FINANCIAL CORPORATION,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 4(1)(1), BENGALURU

In the result, the appeals of the Assessee are allowed while the appeal by the revenue is dismissed

ITA 1413/BANG/2019[2014-15]Status: DisposedITAT Bangalore04 Mar 2021AY 2014-15

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Respondent: Shri. Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 20Section 40Section 5(1)Section 7

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA Nos. and Appellant Respondent Assessment Year 1413/Bang/2019 M/s. Karnataka State ACIT, 2014-15 Financial Corporation, Circle – 4(1)(1), No.1/1 Thimmaiah Road, Bengaluru. Opp. to Cantonment Railway Station, Bengaluru – 560 052. PAN : AAACK 9480 H 1420/Bang/2019 ACIT, M/s. Karnataka State Financial 2014-15 Circle – 4(1)(1), Corporation, Bengaluru. Bengaluru – 560 052. PAN : AAACK 9480 H 3190/Bang/2018 M/s. Karnataka State DCIT, 2015-16 Financial Corporation, Circle…

M/S KARNATAKA STATE FINANCIAL CORPORATION ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the result, the appeals of the Assessee are allowed while the appeal by the revenue is dismissed

ITA 3190/BANG/2018[2015-16]Status: DisposedITAT Bangalore04 Mar 2021AY 2015-16

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Respondent: Shri. Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 20Section 40Section 5(1)Section 7

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA Nos. and Appellant Respondent Assessment Year 1413/Bang/2019 M/s. Karnataka State ACIT, 2014-15 Financial Corporation, Circle – 4(1)(1), No.1/1 Thimmaiah Road, Bengaluru. Opp. to Cantonment Railway Station, Bengaluru – 560 052. PAN : AAACK 9480 H 1420/Bang/2019 ACIT, M/s. Karnataka State Financial 2014-15 Circle – 4(1)(1), Corporation, Bengaluru. Bengaluru – 560 052. PAN : AAACK 9480 H 3190/Bang/2018 M/s. Karnataka State DCIT, 2015-16 Financial Corporation, Circle…

DCIT, CIRCLE- 62(1), NEW DELHI vs. L&T SUCG JV CC27, NEW DELHI

In the result, appeal of the Department is dismissed

ITA 4457/DEL/2018[2014-15]Status: DisposedITAT Delhi10 Jul 2019AY 2014-15

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: Shri Saurabh Goel, C.As And Shri Nirbhay MehtaFor Respondent: Shri J.K. Mishra, CIT-DR

….2. He has submitted that the aforesaid decision has been confirmed by the Hon’ble Supreme Court by dismissing 88 ITA.No.4351 & 4457/Del./2018 L & T SUCG JV CC 27, New Delhi. the Departmental Appeal in the case CIT vs. Sivakami Mills Ltd., reported in [1997] 227 ITR 465 (SC). 41. On the other hand, Ld. D.R. relied upon the Orders of the authorities below and submitted that it has two parts as explained above. Since it was the liability of the JV partner, therefore, entire guarantee commission could not be allowed as expenditure. 42. We have considered the rival submissions. The assessee explained that it has d…

L&T SUCG JV CC27,NEW DELHI vs. ADDL.CIT, RANGE-62, NEW DELHI

In the result, appeal of the Department is dismissed

ITA 4351/DEL/2018[2014-15]Status: DisposedITAT Delhi10 Jul 2019AY 2014-15

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: Shri Saurabh Goel, C.As And Shri Nirbhay MehtaFor Respondent: Shri J.K. Mishra, CIT-DR

….2. He has submitted that the aforesaid decision has been confirmed by the Hon’ble Supreme Court by dismissing 88 ITA.No.4351 & 4457/Del./2018 L & T SUCG JV CC 27, New Delhi. the Departmental Appeal in the case CIT vs. Sivakami Mills Ltd., reported in [1997] 227 ITR 465 (SC). 41. On the other hand, Ld. D.R. relied upon the Orders of the authorities below and submitted that it has two parts as explained above. Since it was the liability of the JV partner, therefore, entire guarantee commission could not be allowed as expenditure. 42. We have considered the rival submissions. The assessee explained that it has d…

ACIT, NEW DELHI vs. M/S. CONEXANT SYSTEMS (P) LTD, NEW DELHI

In the result, revenue’s appeal is dismissed and the assessee’s cross- objection is partly allowed for statistical purposes

ITA 4359/DEL/2009[2004-05]Status: DisposedITAT Delhi27 Nov 2015AY 2004-05

Bench: Shri S.V. Mehrotra : & Shri A.T. Varkey:Asstt. Yr: 2004-05 Acit, Circle 3(1), Vs. M/S Conexant Systems Pvt. Ltd., New Delhi. 11-A, Sucheta Bhawan, Vishnu Digambar Marg, New Delhi. Pan: Aaacf 2723 N & C.O. No. 37/Del/2010 ( In Ita No. 4359/Del/2009 ) Asstt. Yr: 2004-05 M/S Conexant Systems Pvt. Ltd., Vs. Acit, Circle 3(1), 11-A, Sucheta Bhawan, New Delhi. Vishnu Digambar Marg, New Delhi. ( Appellant ) (Respondent) Department By : Sh. Vijay Kumar Chadha Cit (Dr) Assessee By : Sh. Piyush Chawla Adv. Date Of Hearing : 30/09/2015. Date Of Order : 27/11/2015. O R D E R Per S.V. Mehrotra, A.M..: The Captioned Appeal By The Department & The Cross Objection By The Assessee Have Been Preferred Against The Order Dated 23-9-2009 Passed By The Ld. Cit(A)-Xx, New Delhi In Appeal No. 153/2007-08, Relating To Assessment Year 2004-05. 2. The Assessee, A 100% Subsidiary Of Globespan Virata Inc. (’Gsv’), In The Relevant Assessment Year, Was Involved In Software Development At Various Levels To Be Used In Gsv’S Products. It Provided Hardware Drivers, System Software, Communication Protocol, Stacks Etc. The Assessee Also Developed Management Software Which Helped In Managing The Chip Or Even The Whole System. The Assessee Also Provided Market Support Services To Gsv In The Asia Pacific Region. 3. The Assessee Had Filed Return Of Income Declaring Total Income Of Rs. 1,63,04,536/-. During The Year Under Consideration, The Assessee Had Entered Into Following International Transactions:

For Appellant: Sh. Piyush Chawla AdvFor Respondent: Sh. Vijay Kumar Chadha CIT (DR)

…1) read with Explanation 8, interest payable on asset for the period, after such asset was put to use, could not be capitalized. He also relied on following decisions: - Bombay Steam Navigation Co. (P) Ltd. Vs. CIT 56 ITR 52 (SC) - CIT Vs. Sivakami Mills Ltd. 227 ITR 465. 17. We have considered the submissions of both the parties and perused the record. The facts are not disputed that the interest claimed by assessee was in respect of deferred instalments after the land including the superstructure was put to use on acquisition. Therefore, ld. CIT(A) rightly held that the interest pertaining to the period post ac…

DCIT vs. ING VYSYA BANK, BANGALORE

In the result, appeal by the Assessee is partly allowed while the 68

ITA 318/BANG/2013[2005-06]Status: DisposedITAT Bangalore06 Feb 2015AY 2005-06

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2005-06 M/S. Ing Vysya Bank Ltd., Vs. The Assistant Commissioner Of Ing Vysya House, Income Tax, No.22, M.G. Road, Circle 11(4), Bangalore – 560 001. Bangalore. Pan: Aabct 0529M Appellant Respondent Assessment Year : 2005-06 The Deputy Commissioner Of Vs. M/S. Ing Vysya Bank Ltd., Income Tax, Bangalore – 560 001. Circle 11(4), Pan: Aabct 0529M Bangalore. Appellant Respondent Assessee By : Shri S. Ananthan, C.A. Revenue By : Shri C.H. Sundar Rao, Cit-I(Dr) Date Of Hearing : 20.01.2015 Date Of Pronouncement : 06.02.2015 O R D E R Per N.V. Vasudevan

For Appellant: Shri S. Ananthan, C.AFor Respondent: Shri C.H. Sundar Rao, CIT-I(DR)
Section 1Section 10Section 234D

…deration. It was further submitted by him that in the following decisions, the Hon'ble Courts have taken a view that interest paid on unpaid purchase consideration is a revenue expenditure and is deductible while computing income:- Sivakami Mills Ltd. (1997) 227 ITR 465 (SC) Bombay Steam Navigation Co. Pvt. Ltd. (1965) 56 ITR 52 (SC) Granulated Fertilizers & Fees (P.) Ltd. (1999) 137 ITR 400 (Guj) Gwalior Rayon Silk Mfg. (Wvg.) Co. Ltd. (1999) 237 ITR 254 (Bom) Coimbatore Pioneer Mills Ltd. (1999) 236 ITR 69 (Mad) 36. The ld. counsel for the assessee also brought to our notice that the assessee had offered to t…

ING VYSYA BANK LTD. vs. ACIT, BANGALORE

In the result, appeal by the Assessee is partly allowed while the 68

ITA 288/BANG/2013[2005-06]Status: DisposedITAT Bangalore06 Feb 2015AY 2005-06

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2005-06 M/S. Ing Vysya Bank Ltd., Vs. The Assistant Commissioner Of Ing Vysya House, Income Tax, No.22, M.G. Road, Circle 11(4), Bangalore – 560 001. Bangalore. Pan: Aabct 0529M Appellant Respondent Assessment Year : 2005-06 The Deputy Commissioner Of Vs. M/S. Ing Vysya Bank Ltd., Income Tax, Bangalore – 560 001. Circle 11(4), Pan: Aabct 0529M Bangalore. Appellant Respondent Assessee By : Shri S. Ananthan, C.A. Revenue By : Shri C.H. Sundar Rao, Cit-I(Dr) Date Of Hearing : 20.01.2015 Date Of Pronouncement : 06.02.2015 O R D E R Per N.V. Vasudevan

For Appellant: Shri S. Ananthan, C.AFor Respondent: Shri C.H. Sundar Rao, CIT-I(DR)
Section 1Section 10Section 234D

…deration. It was further submitted by him that in the following decisions, the Hon'ble Courts have taken a view that interest paid on unpaid purchase consideration is a revenue expenditure and is deductible while computing income:- Sivakami Mills Ltd. (1997) 227 ITR 465 (SC) Bombay Steam Navigation Co. Pvt. Ltd. (1965) 56 ITR 52 (SC) Granulated Fertilizers & Fees (P.) Ltd. (1999) 137 ITR 400 (Guj) Gwalior Rayon Silk Mfg. (Wvg.) Co. Ltd. (1999) 237 ITR 254 (Bom) Coimbatore Pioneer Mills Ltd. (1999) 236 ITR 69 (Mad) 36. The ld. counsel for the assessee also brought to our notice that the assessee had offered to t…

DEPUTY COMMNR., INCOME TAX, BARODA vs. GUJARAT ALKALIES & CHEMICALS LTD

C.A. No.-003957-003958 - 2002Supreme Court08 Feb 2008
For Respondent: Gujarat Alkalies & Chemicals Ltd
Section 36(1)(iii)Section 37Section 43(1)

…sion paid by the assessee to the banker and the insurance company was admissible deduction under Section 37 of the Income-tax Act, 1961. To the same effect is the judgment of this Court in the case Commr. of Income-tax v. Sivakami Mills Ltd. \026 (1997) 227 ITR 465. For the aforestated reasons, we answer question No.(1) in favour of the assessee and against the Department. We may clarify that both the above judgments allows deductions under Section 37 of the 1961 Act and not under Section 36(1)(iii) of the 1961 Act. In this case, the Tribunal has allowed the claim under Section 37 and not only Sect…