CIT v. Sugauli Sugar Works (P) Ltd.

140 ITR 286High Court1983#6537 most cited
17

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2011 to 2025.

Sections most often in play

Section 133(6)Section 143(3)Section 41(1)Section 131Section 142(1)Section 271(1)(c)Section 28(iv)Section 68

Issues it is cited on

section 41(1)section 41sundry creditorscompanysection 143(3)business

Judgments citing CIT v. Sugauli Sugar Works (P) Ltd.

DCIT CIRCLE-10(1), NEW DELHI vs. GHAZIABAD ORGANICS LTD., NEW DELHI

Appeal is partly allowed for statistical purposes

ITA 5894/DEL/2019[2015-16]Status: DisposedITAT Delhi26 May 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2015-16 Vs. Ghaziabad Organics Ltd., Dcit, Circle-10(1), C-73, Malviya Nagar, New Delhi New Delhi Pan: Aaacg6468R (Appellant) (Respondent) Assessee By None Department By Sh. Rajesh Kumar Dhanesta, Sr. Dr Date Of Hearing 26.05.2025 Date Of Pronouncement 26.05.2025 Order

Section 133(6)Section 143(3)Section 41(1)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER Assessment Year: 2015-16 Vs. Ghaziabad Organics Ltd., DCIT, Circle-10(1), C-73, Malviya Nagar, New Delhi New Delhi PAN: AAACG6468R (Appellant) (Respondent) Assessee by None Department by Sh. Rajesh Kumar Dhanesta, Sr. DR Date of hearing 26.05.2025 Date of pronouncement 26.05.2025 ORDER PER SATBEER SINGH GODARA, JM This Revenue’s appeal for assessment year 2015-16, arises against the Commissioner of Income Tax (Appeals)-4 [in short, the “CIT(A)”], New Delhi’…

DY. COMMISSIONER OF INCOME TAX, PUNE vs. INDUS BIOTECH PRIVATE LIMITED, PUNE

Appeal is dismissed

ITA 863/PUN/2023[2018-19]Status: DisposedITAT Pune22 Oct 2024AY 2018-19

Bench: Shri R.K. Panda & Shri S.S. Godara"नधा"रण वष" / Assessment Year : 2018-19 Dcit, Vs. Indus Biotech Pvt. Ltd. Circle-1(1), 1, Rahul Residency, Pune Plot Nos.6 & 7, Off Salunke Vihar Road, Kondhwa, Kondhwa Bk B.O., Pune – 411048 Maharashtra Pan: Aaaci5708E Appellant Respondent

Section 143(3)Section 250Section 41(1)

…he suspense account to the capital reserve account would not bring the said amount within Section 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court [reported as CIT v. Sugauli Sugar Works (P) Ltd. (1983) 140 ITR 286]. The revenue carried the matter in the appeal to the Supreme Court. The contention of the revenue (as noted at page 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation of…

SAKET AGARWAL,JAIPUR vs. ITO WARD 2(3) JAIPUR, JAIPUR

In the result appeal filed by the assessee is allowed

ITA 646/JPR/2024[2014-15]Status: DisposedITAT Jaipur01 Oct 2024AY 2014-15

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Ms. Satwika Jhan, AdvFor Respondent: Ms. Alka Gautam (CIT) a
Section 143(2)Section 143(3)Section 271(1)(c)Section 41(1)

…ill not enable the debtor to say that the liability has come to an end. Apart from that, that will not by itself confer any benefit on the debtor as contemplated by the section. The decision of the Calcutta High Court inCITv.SugauliSugar Works Private Limited 140 ITR 286affirmed." 15.1 The issue to be decided by the Tribunal is squarely covered by the judgment cited as Sugauli Sugar Works Limited (supra) because merely by virtue of fact that a debt become time barred the right of the creditor will not come to an end nor the liability will cease and in these circumstances, Section 41(1) of the Act is not attracted…

RMG ALLOY STEEL LTD,MUMBAI vs. DCIT CEN CIR 3(4), MUMBAI

In the result, the appeal filed by the assessee is hereby ordered to be allowed

ITA 333/MUM/2017[2012-13]Status: DisposedITAT Mumbai30 Apr 2019AY 2012-13

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.333/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2012-13) M/S. Rmg Alloy Steel बिधम/ Dy. Cit Central Circle-3(4) Limited Nariman Point, Mumbai- Vs. (Formerly Known As M/S. 400021. Remi Metal Gujarat Ltd.) Welspun House, 4Th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbbai-400013. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacr2121C (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri D. G. Pansari (Dr) Assessee By: Shri Farrokh Irani/ Mitesh Shah सुनवाई की तारीख / Date Of Hearing: 07/02/2019 घोषणा की तारीख /Date Of Pronouncement: 30/04/2019 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 22.11.2016 Passed By The Commissioner Of Income Tax (Appeals) -51, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2012- 13. 2. The Assessee Has Raised The Following Grounds: - ―The Ground Or Grounds Of Appeal Are Without Prejudice To One Another. A.Y.2012-13

For Appellant: Shri Farrokh Irani/ Mitesh ShahFor Respondent: Shri D. G. Pansari (DR)
Section 143(2)Section 271(1)(c)Section 41(1)Section 41(1)(a)

…f the assessee has 3 A.Y.2012-13 argued that the assessee did not obtain benefit by virtue of remission or cessation of liability, therefore, the u/s 41(1) of the Act was not applicable in view of the law settled in CIT Vs. Sugauli Sugar Works P. Ltd. (1983) 140 ITR 286 (Cal) hence the addition raised in view of the provisions u/s 41(1) of the Act on account of sundry creditors is liable to be deleted in accordance with law. However, on the other hand, the Ld. Representative of the Department has strongly relied upon the order passed by the CIT(A) in question and also placed reliance upon the law settled in the…

DAS ENTERPRISE,KOLKATA vs. ITO, WD-49(3), KOLKATA, KOLKATA

ITA 1321/KOL/2016[2011-2012]Status: DisposedITAT Kolkata09 Jan 2019AY 2011-2012

Bench: Sri J. Sudhakar Reddy) Assessment Year: 2011-12 Das Enterprise……………….……...............….……...........…………..……………….…...……..….…….......Appellant 22 & 23, Feeder Road P.O. & P.S. Belghoria Kolkata – 700 056 [Pan : Aaepd 8027 G ] Vs. Income Tax Officer, Ward-49(3), Kolkata.……......……….........…………..………….…............Respondent Appearances By: Shri Arun Kumar Dubey, Ca, Appeared On Behalf Of The Assessee. Shri Nicholas Murmu, Jcit D/R. Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : November 27Th, 2018 Date Of Pronouncing The Order : January 9Th , 2019 Order Per J. Sudhakar Reddy, Am :- This Appeal Filed By The Assessee Is Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-15, Kolkata, (Hereinafter The ‘Ld. Cit(A)’), Dt. 08/03/2016, Passed U/S 250 Of The Income Tax Act, 1961 (Hereinafter The ‘Act’), Relating To Assessment Year 2011-12. 2. The Assessee Is A Partnership Firm & Is In The Business Of Trading In Rice. It Filed Its Return Of Income On 30/09/2011 For The Assessment Year 2011-12, Declaring Total Income Of Rs.44,650/-. A Survey Was Conducted U/S 153A Of The Act, On 15/03/2011. Thereafter Assessment Was Completed U/S 143(3) Of The Act, On 18/03/2014, Determining Total Income At Rs.40,45,850/- Interalia Making Additions On Account Of Undisclosed Investment In Stock U/S 69 Of The Act, Unexplained Money Being Difference In Cash Balance, Suppression Of Sales, Cessation Of Liabilities & Disallowance U/S 40(A)(Ia) Of The Act, Of Carriage Inward. Aggrieved, The Assessee Carried The Matter In Appeal Before The Ld. First Appellate Authority. The Ld. First Appellate Authority, Granted Part Relief.

Section 133(6)Section 143(3)Section 153ASection 250Section 40Section 41Section 41(1)Section 69

…se account to the capital reserve account would not bring the said amount within s. 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court CIT vs. Sugauli Sugar Works (P) Ltd. (1981) 23 CTR (Cal) 226 : (1983) 140 ITR 286 (Cal). The Revenue carried the matter in the appeal to the Supreme Court. The contention of the Revenue (as noted at p. 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation…

M/S VAISHALI BUILDCON PVT. LTD.,HOOGHLY vs. ACIT, CIRCLE-2, CHINSURAH, HOOGHLY, HOOGHLY

In the result, the appeal of the assessee is allowed

ITA 1720/KOL/2016[2008-09]Status: DisposedITAT Kolkata27 Jun 2018AY 2008-09

Bench: Hon’Ble Shri J.Sudhakar Reddy, Am] I.T.A No. 1720/Kol/2016 Assessment Year : 2008-09 M/S Vaishali Buildcon Pvt. Ltd. -Vs- Acit, Circle-2, Chinsurah [Pan: Aabcv 0627 L] (Appellant) (Respondent)

For Appellant: Shri S. Jhajharia, ARFor Respondent: Shri Pinaki Mukherjee, Addl. CIT
Section 143(3)Section 41Section 41(1)

…se account to the capital reserve account would not bring the said amount within s. 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court CIT vs. Sugauli Sugar Works (P) Ltd. (1981) 23 CTR (Cal) 226 : (1983) 140 ITR 286 (Cal). The Revenue carried the matter in the appeal to the Supreme Court. The contention of the Revenue (as noted at p. 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation…

JASHOJIT MUKHERJEE,KOLKATA vs. ACIT, CIR-50, KOLKATA, KOLKATA

In the result, the appeal of the assessee is allowed

ITA 403/KOL/2017[2012-13]Status: DisposedITAT Kolkata04 May 2018AY 2012-13

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 403/Kol/2017 Assessment Year : 2012-13 Jashojit Mukherjee -Vs- Acit, Circle-50, Kolkata [Pan: Afapm 7208 R] (Appellant) (Respondent)

For Appellant: Shri P.K. Himmatsinghka, ARFor Respondent: Shri Sallong Yaden, Addl. CIT
Section 133(6)Section 139(4)Section 143(2)Section 143(3)Section 41(1)

…account to the capital reserve account would not bring the said amount within s. 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court in CIT v. Sugauli Sugar Works (P.) Ltd.(1981) 23 CTR (Cal) 226 : (1983) 140 ITR 286 (Cal). The Revenue carried the matter in the appeal to the Supreme Court. The contention of the Revenue (as noted at p. 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation…

VIJAY KUMAR DAGA,KOLKATA vs. ITO, WARD-6(4), KOLKATA, KOLKTA

In the result the appeal of the assessee is allowed in part

ITA 1837/KOL/2017[2008-09]Status: DisposedITAT Kolkata13 Apr 2018AY 2008-09

Bench: Hon’Ble Shri J.Sudhakar Reddy, Am] Assessment Year : 2008-09 Vijay Kumar Daga -Versus- I.T.O., Ward-6(4), Kolkata Kolkata (Pan: Afupd 5201 K) (Appellant) (Respondent)

For Appellant: Shri Manish Kumar Mundra, FCAFor Respondent: Shri Piyush Mukherjee, Addl. CIT
Section 14ASection 41Section 41(1)

…se account to the capital reserve account would not bring the said amount within s. 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court CIT vs. Sugauli Sugar Works (P) Ltd. (1981) 23 CTR (Cal) 226 : (1983) 140 ITR 286 (Cal). The Revenue carried the matter in the appeal to the Supreme Court. The contention of the Revenue (as noted at p. 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation…

SHREE SHANKAR STEELS,KOLKATA vs. ITO, WD-44(3), KOLKATA, KOLKATA

In the result the appeal of the assessee is allowed

ITA 1341/KOL/2016[2008-09]Status: DisposedITAT Kolkata13 Apr 2018AY 2008-09

Bench: Hon’Ble Shri J.Sudhakar Reddy, Am] Assessment Year : 2008-09

For Appellant: Shri Siddharth Agarwal, AdvocateFor Respondent: Shri D.C.Mondal, Addl. CIT
Section 133(6)Section 41Section 41(1)

…se account to the capital reserve account would not bring the said amount within s. 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court CIT vs. Sugauli Sugar Works (P) Ltd. (1981) 23 CTR (Cal) 226 : (1983) 140 ITR 286 (Cal). The Revenue carried the matter in the appeal to the Supreme Court. The contention of the Revenue (as noted at p. 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation…

ANIL KUMAR DANGAYACH HUF,JAIPUR vs. ITO, JAIPUR

In the result, appeal of the assessee is allowed

ITA 976/JPR/2016[2012-13]Status: DisposedITAT Jaipur20 Mar 2018AY 2012-13

Bench: Or At The Time Of Hearing.

For Appellant: Shri S.L. Poddar &For Respondent: Shri L.R. Meena (CIT)
Section 41(1)Section 44A

…8 (Bom.), CIT v. Sadabhakti Prakashan Printing Press (P.) Ltd. [1980] 125 ITR 326 (Bom.), CIT v. V.T. Kuttappu & Sons [1974] 96 ITR 327 (Ker.), Liquidator, Mysore Agencies (P.) Ltd. v. CIT [1978] 114 ITR 853 (Kar.), CIT v. Sugauli Sugar Works (P.) Ltd. [1983] 140 ITR 286 (Cal.), Bijli Cotton Mill (P.) Ltd. v. CIT [1971] 81 ITR 400 (All.) and Bhagwat Prasad & Co. v. CIT [1975] 99 ITR 111 (All.). 4. The learned counsel for the revenue placed reliance on a decision of the Allahabad High Court in Indian Motor Transport Co. v. CIT [1978] 114 ITR 677. In our opinion, this decision of the Allahabad High Court cannot be…

ACIT, NEW DELHI vs. M/S DLF LTD., NEW DELHI

ITA 3061/DEL/2011[2006-07]Status: DisposedITAT Delhi11 Mar 2016AY 2006-07

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

Section 133ASection 142Section 143(2)Section 144Section 146Section 250

…he suspense account to the capital reserve account would not bring the said amount within Section 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court [reported as CIT v. Sugauli Sugar Works (P) Ltd. (1983) 140 ITR 286]. The revenue carried the matter in the appeal to the Supreme Court. The contention of the revenue (as noted at page 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation of…

DLF LTD.,NEW DELHI vs. ADDL. CIT, NEW DELHI

ITA 2677/DEL/2011[2006-07]Status: DisposedITAT Delhi11 Mar 2016AY 2006-07

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

Section 133ASection 142Section 143(2)Section 144Section 146Section 250

…he suspense account to the capital reserve account would not bring the said amount within Section 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court [reported as CIT v. Sugauli Sugar Works (P) Ltd. (1983) 140 ITR 286]. The revenue carried the matter in the appeal to the Supreme Court. The contention of the revenue (as noted at page 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation of…

ACIT vs. M/S ALVARES & THOMAS,

ITA 1676/BANG/2013[2010-11]Status: DisposedITAT Bangalore14 Aug 2015AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2010-11

For Appellant: Shri Sunil Kumar Agarwala, Jt. CIT(DR)For Respondent: Shri S. Venkatesan, CA
Section 131(1)(d)Section 41(1)

…he capital reserve account would not bring Page 10 of 14 the said amount within s. 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court CIT vs. Sugauli Sugar Works (P) Ltd. (1981) 23 CTR (Cal) 226 : (1983) 140 ITR 286 (Cal). The Revenue carried the matter in the appeal to the Supreme Court. The contention of the Revenue (as noted at p. 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation…

GLEN WILLIAMS,BANGALORE vs. ASST. CIT, BANGALORE

ITA 1078/BANG/2014[2009-10]Status: DisposedITAT Bangalore07 Aug 2015AY 2009-10

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz Assessment Year : 2009-10

For Appellant: Shri T.V. Subramanya Bhat, CAFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 271(1)(c)Section 68

…se account to the capital reserve account would not bring the said amount within s. 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court CIT vs. Sugauli Sugar Works (P) Ltd. (1981) 23 CTR (Cal) 226 : (1983) 140 ITR 286 (Cal). The Revenue carried the matter in the appeal to the Supreme Court. The contention of the Revenue (as noted at p. 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a period of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cessation…

THE COMMISSIONER OF INCOME TAX-III vs. SHRI VARDHMAN OVERSEAS LTD.

ITA/774/2009HC Delhi23 Dec 2011

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 260ASection 41(1)Section 68

…spense account to the capital reserve account would not bring the said amount within Section 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court [reported as CIT v. Sugauli Sugar Works (P) Ltd. (1983) 140 ITR 286]. The revenue carried the matter in the appeal to the Supreme Court. The contention of the revenue (as noted at page 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a peirod of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cess…

THE COMMISSIONER OF INCOME TAX-III vs. SHRI VARDHMAN OVERSEAS LTD.

ITA-774/2009HC Delhi23 Dec 2011
Section 260ASection 41(1)Section 68

…spense account to the capital reserve account would not bring the said amount within Section 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court [reported as CIT v. Sugauli Sugar Works (P) Ltd. (1983) 140 ITR 286]. The revenue carried the matter in the appeal to the Supreme Court. The contention of the revenue (as noted at page 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a peirod of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cess…

THE COMMISSIONER OF INCOME TAX-III vs. SHRI VARDHMAN OVERSEAS LTD.

ITA - 774 / 2009HC Delhi23 Dec 2011
Section 260ASection 41(1)Section 68

…spense account to the capital reserve account would not bring the said amount within Section 41(1). The contention was accepted by the Tribunal whose decision was affirmed by the Calcutta High Court [reported as CIT v. Sugauli Sugar Works (P) Ltd. (1983) 140 ITR 286]. The revenue carried the matter in the appeal to the Supreme Court. The contention of the revenue (as noted at page 520 of 236 ITR) was that on the facts of the case, the liability came to an end as a peirod of more than 20 years had elapsed and the creditors had not taken any steps to recover the amount and consequently there was a cess…

CIT v. Sugauli Sugar Works (P) Ltd. (140 ITR 286) — Cited in 17 Judgments | BharatTax