What is CIT v. Textool Co. Ltd. authority for?

A loss is deductible as a business loss only if it arises during the course of or is incidental to business operations, requiring a direct and proximate nexus with the business. If profits from an activity are taxable, losses from it are deductible.

How many judgments cite CIT v. Textool Co. Ltd.?

48 judgments on BharatTax cite CIT v. Textool Co. Ltd. (135 ITR 200), spanning 2016 to 2025.

Which sections of the Income Tax Act does CIT v. Textool Co. Ltd. come up under?

It is most often cited in judgments turning on Section 37, Section 80IC, Section 143(2), Section 271(1)(c), Section 274, Section 80IB.

CIT v. Textool Co. Ltd. (135 ITR 200)

Tata Chemicals Ltd, Mumbai vs. DCIT 2(3), Mumbai

ITA 2965/MUM/2015[2002-03]Status: DisposedITAT Mumbai22 Apr 2019AY 2002-03

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2002-03 Tata Chemicals Ltd. Deputy Commissioner Of Bombay House, Vs. Income Tax-2(3)(1), 5Th 24 Homi Mody Street, Floor, Aayakar Bhavan, Fort, Mumbai-400001 M.K. Road, Mumbai- 400020 Pan No. Aaact4059M Appellant Respondent Assessment Year: 2002-03 Deputy Commissioner Tata Chemicals Ltd. Of Income Tax-2(3)(1), Vs. Bombay House, 5Th Floor, Aayakar 24 Homi Mody Street, Bhavan, M.K. Road, Fort, Mumbai-400001 Mumbai-400020 Pan No. Aaact4059M Appellant Respondent Assessee By : Mr. Nitesh Joshi, Ar Revenue By : Mr. Choudhary Arun Kumar Singh, Date Of Hearing : 25/01/2019 Date Of Pronouncement: 22/04/2019

For Appellant: Mr. Nitesh Joshi, ARFor Respondent: Mr. Choudhary Arun Kumar Singh

Section 115JSection 143(3)Section 14A

…t and loss account and amortized towards deposit lying with the lessor on principle of matching concept and hence allowable as business expenditure. It is found that before the Ld. CIT(A), the assessee had relied on the decision in 120 ITR 440, 134 ITR 21 and 135 ITR 200. 8.4 On the other hand, the Ld. DR submits that the above claim of write off of provision for lease deposit is not allowable as per the provisions of section 37(1) of the Act as the lease deposit is capital in nature. Thus the Ld. DR supports the order passed by the CIT(A). 8.5 We have heard the rival submissions and perused the relevant material…

Assistant Commissioner of Income Tax Central Circle-1(1), Bangalore vs. M/S Himalaya Drug Company, Bangalore

In the result, the appeal by the revenue and the CO by the assessee are dismissed, while the appeal by the assessee is partly allowed

ITA 820/BANG/2017[2005-06]Status: DisposedITAT Bangalore25 Jan 2019AY 2005-06

Bench: Shri N.V. Vasudevan & Shri Jason P. Boazassessment Year : 2005-06

For Appellant: Shri P.C. Khincha, CAFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru

Section 143(3)

…necessary in the matter of recognizing the nature of an amount maintained by the Assessee so that the basis of concluded asst. would not be ignored without actually reopening the asst. The learned Madras high court in the case of CIT Vs. Taxtool Company Ltd, 257 ITR 39 allowed the deduction in respect of contribution directly paid to LIC towards Group Gratuity Fund. The real intention behind allowing this deduction is to ensure that employees get gratuity and the funds contributed for payment of such gratuity are not utilized by the assessee. Such contributions are to be held by an approved gratuity fund under t…

The Himalaya Drug Company, Bangalore vs. Additional Commissioner of Income Tax Range-6(1), Bangalore

In the result, the appeal by the revenue and the CO by the assessee are dismissed, while the appeal by the assessee is partly allowed

ITA 802/BANG/2017[2005-06]Status: DisposedITAT Bangalore25 Jan 2019AY 2005-06

Bench: Shri N.V. Vasudevan & Shri Jason P. Boazassessment Year : 2005-06

For Appellant: Shri P.C. Khincha, CAFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru

Section 143(3)

…necessary in the matter of recognizing the nature of an amount maintained by the Assessee so that the basis of concluded asst. would not be ignored without actually reopening the asst. The learned Madras high court in the case of CIT Vs. Taxtool Company Ltd, 257 ITR 39 allowed the deduction in respect of contribution directly paid to LIC towards Group Gratuity Fund. The real intention behind allowing this deduction is to ensure that employees get gratuity and the funds contributed for payment of such gratuity are not utilized by the assessee. Such contributions are to be held by an approved gratuity fund under t…

The Kanakamahalakshmi Co-Operative Bank Limited, Visakhapatnam vs. The ACIT, Visakhapatnam

ITA 300/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam05 Sept 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri S. Rama Rao –AdvFor Respondent: Shri P.S. Murthy –Sr.DR

…of Warner Hindustan Ltd., (supra) has been considered by the coordinate bench of the Tribunal in the case of District Cooperative Central Bank (supra) and also the judgment of the Hon'ble Madras High Court in the case of CIT vs. Textool company Private Ltd. (257 ITR 39). The Tribunal has also considered the decision of the coordinate bench of the Hyderabad Tribunal in the case of Capital IQ Information Pvt. Ltd. in ITA No. 81/Hyd/2013, dated 31/05/2013 wherein by following the judgment of the Hon'ble Jurisdictional High Court in the case of Warner Hindustan Ltd. (supra) held as under:- “8. We have heard both the…

The Kanakamahalakshmi Co-Operative Bank Limited, Visakhapatnam vs. The ACIT, Visakhapatnam

ITA 299/VIZ/2017[2012-2013]Status: DisposedITAT Visakhapatnam05 Sept 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri S. Rama Rao –AdvFor Respondent: Shri P.S. Murthy –Sr.DR

…of Warner Hindustan Ltd., (supra) has been considered by the coordinate bench of the Tribunal in the case of District Cooperative Central Bank (supra) and also the judgment of the Hon'ble Madras High Court in the case of CIT vs. Textool company Private Ltd. (257 ITR 39). The Tribunal has also considered the decision of the coordinate bench of the Hyderabad Tribunal in the case of Capital IQ Information Pvt. Ltd. in ITA No. 81/Hyd/2013, dated 31/05/2013 wherein by following the judgment of the Hon'ble Jurisdictional High Court in the case of Warner Hindustan Ltd. (supra) held as under:- “8. We have heard both the…