CIT v. Walchand & Co.

65 ITR 381Supreme Court of India1967#246 most cited

What is CIT v. Walchand & Co. authority for?

The necessity and reasonableness of business expenditure, including the utilization of borrowed funds, must be judged from the perspective of a businessman based on commercial expediency, and cannot be dictated by revenue authorities. The onus is on the assessee to demonstrate the business purpose and commercial expediency.

314

judgments rely on this decision, according to BharatTax’s citation analysis of 367,837 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Walchand & Co. · 65 ITR 381 · Section 40A(2) · Section 40A(3) · business expediency · commercial expediency · reasonableness of expenditure · necessity of expenditure · businessman's point of view · onus on assessee · disallowance of expenditure · revenue dictating expenses

Sections most often in play

Section 143(3)Section 14ASection 148Section 147Section 40A(2)(b)Section 40A(3)Section 142(1)Section 142(2A)

Issues it is cited on

section 40(3)short deduction of tdsinterest on interestsection 40a(2)(b)closely held companyshort deduction of taxbusiness expediencysection 40a(2)accumulated profitsrelated party transactioncommercial expediencysection 194j

Judgments citing CIT v. Walchand & Co.

DCIT, Circle - 8, Kolkata vs. M/S. Eih Limited, Kolkata

In the result, the appeal of the assessee in ITA No

ITA 348/KOL/2011[2006-07]Status: DisposedITAT Kolkata01 Jun 2016AY 2006-07

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Respondent: Shri Vijay Shankar, CIT, DR
Section 143(3)Section 195Section 40Section 9(1)(vii)

…egard is placed on the decision of the Hon’ble Supreme Court in the case of CIT vs Dhanraj Girji Raja Narasingherji (1973) 91 ITR 544 (SC). Further reliance is also placed on the decision of the Hon’ble Apex Court in the case of CIT vs Walchand and Co. (1967) 65 ITR 381 (SC) wherein it was held that in applying the test of commercial expediency whether the expenditure was excessively laid down for the purpose of business, reasonableness of the expenditure is to be judged from the point of view of a businessman and not that of the revenue. It is well decided that what is to be seen for the purpose of allowability…

Eih Limited, Kolkata vs. DCIT, Circle - 8, Kolkata

In the result, the appeal of the assessee in ITA No

ITA 314/KOL/2011[2006-07]Status: DisposedITAT Kolkata01 Jun 2016AY 2006-07

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Respondent: Shri Vijay Shankar, CIT, DR
Section 143(3)Section 195Section 40Section 9(1)(vii)

…egard is placed on the decision of the Hon’ble Supreme Court in the case of CIT vs Dhanraj Girji Raja Narasingherji (1973) 91 ITR 544 (SC). Further reliance is also placed on the decision of the Hon’ble Apex Court in the case of CIT vs Walchand and Co. (1967) 65 ITR 381 (SC) wherein it was held that in applying the test of commercial expediency whether the expenditure was excessively laid down for the purpose of business, reasonableness of the expenditure is to be judged from the point of view of a businessman and not that of the revenue. It is well decided that what is to be seen for the purpose of allowability…

ACIT, Bangalore vs. 3M India Limited, Bangalore

In the result, both the appeals filed by the assessee- company as well as the revenue are partly allowed for statistical purposes

ITA 727/BANG/2011[2005-06]Status: DisposedITAT Bangalore13 May 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Mukesh Bhutani, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)
Section 143(1)Section 143(2)Section 92C

…and powers of the AO/TPO to question the necessity of incurring expenditure. The Hon’ble Delhi High Court in the case of CIT vs. EKL Appliances Ltd. (345 ITR 241), after considering the judgment of the Apex Court in the case of CIT vs. Walchand & Co. P.Ltd. (65 ITR 381)(SC), Sassoon J.David & Co. Pvt. Ltd. vs. CIT (118 ITR 261)(SC) held that the TPO cannot determine ALP at nil by holding that there was no need to incur such expenditure. While coming to this conclusion, the Hon’ble High Court has referred to the judgment of the Apex Court in the case of Eastern Investments Ltd. vs. CIT (20 ITR 1)(SC) and CIT vs.…

3M India Limited, Bangalore vs. Addl.C.I.T., Bangalore

In the result, both the appeals filed by the assessee- company as well as the revenue are partly allowed for statistical purposes

ITA 725/BANG/2011[2005-06]Status: DisposedITAT Bangalore13 May 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Mukesh Bhutani, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)
Section 143(1)Section 143(2)Section 92C

…and powers of the AO/TPO to question the necessity of incurring expenditure. The Hon’ble Delhi High Court in the case of CIT vs. EKL Appliances Ltd. (345 ITR 241), after considering the judgment of the Apex Court in the case of CIT vs. Walchand & Co. P.Ltd. (65 ITR 381)(SC), Sassoon J.David & Co. Pvt. Ltd. vs. CIT (118 ITR 261)(SC) held that the TPO cannot determine ALP at nil by holding that there was no need to incur such expenditure. While coming to this conclusion, the Hon’ble High Court has referred to the judgment of the Apex Court in the case of Eastern Investments Ltd. vs. CIT (20 ITR 1)(SC) and CIT vs.…

Ge Money Financial Services Pvt. Ltd., Delhi vs. DCIT, New Delhi

In the result ground, no

ITA 6282/DEL/2012[2008-09]Status: DisposedITAT Delhi02 May 2016AY 2008-09

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

For Appellant: Sh. Sachit Jolly, AdvFor Respondent: Sh. Amendra Kumar, CIT DR
Section 143(3)Section 144Section 144CSection 144C(5)Section 32Section 36(1)(vii)Section 36(2)Section 92C

…action of revenue as revenue cannot dictate about the business requirement of the assessee as well as regarding the selection of suppliers from services should have been procured from whom. For this he relied on the decisions of i. CIT V Walchand & CO Limited 65 ITR 381 (SC) ii. Sasoon J David& co P Ltd V CIT 118 ITR 261 (SC) iii. Hive Communications P Ltd V CIT 201 Taxman 99 ( Del ) iv. CIT V EKL Appliances 345 ITR 241 ( Del) It was further submitted that several tribunals have held that TPO cannot question the commercial wisdom of the assessee. i. Dresser-Rand India Pvt. Ltd. v. ACIT [2012] 13 ITR (Trib.) 422 (…

Ge Money Financial Services Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result ground, no

ITA 5882/DEL/2010[2006-07]Status: DisposedITAT Delhi02 May 2016AY 2006-07

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

For Appellant: Sh. Sachit Jolly, AdvFor Respondent: Sh. Amendra Kumar, CIT DR
Section 143(3)Section 144Section 144CSection 144C(5)Section 32Section 36(1)(vii)Section 36(2)Section 92C

…action of revenue as revenue cannot dictate about the business requirement of the assessee as well as regarding the selection of suppliers from services should have been procured from whom. For this he relied on the decisions of i. CIT V Walchand & CO Limited 65 ITR 381 (SC) ii. Sasoon J David& co P Ltd V CIT 118 ITR 261 (SC) iii. Hive Communications P Ltd V CIT 201 Taxman 99 ( Del ) iv. CIT V EKL Appliances 345 ITR 241 ( Del) It was further submitted that several tribunals have held that TPO cannot question the commercial wisdom of the assessee. i. Dresser-Rand India Pvt. Ltd. v. ACIT [2012] 13 ITR (Trib.) 422 (…

Goodyear India Ltd., Faridabad vs. ACIT, New Delhi

ITA 5650/DEL/2011[2007-08]Status: DisposedITAT Delhi29 Apr 2016AY 2007-08

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Mr. Ajay Vohra, Sr. AdvFor Respondent: Mr. Amrinder Singh, CIT-DR
Section 143(3)Section 144CSection 144C(5)Section 92C

…he reasonableness of the expenditure has to be seen from the point of view of businessman and not that of the Revenue, as laid down repeatedly in the following cases: • CIT vs. Malayalam Plantations Limited: 53 ITR 140 (SC) • CIT v. Walchand & Co. etc. (1967) 65 ITR 381 • J K Woollen Manufacturers v. CIT: 72 ITR 612(SC) • CIT v. Birla Cotton Spg. And Wvg. Mills Ltd.: 82 ITR 166 (SC) • CIT Vs. Dhanrajgirji Raja Narasingirji 91 ITR 544 • Madhav Prasad Jatia v. CIT U.P.: 118 ITR 200 (SC) • CIT Vs. National Rayon Commercial Co. Ltd. 193 ITR 744 • S.A. Builders Ltd. vs. CIT : 288 ITR 1 (SC) • CIT V. Bharti Televenture…

DCIT, New Delhi vs. M/S. Reebok India Co., New Delhi

In the result, appeal of the department is dismissed

ITA 1137/DEL/2014[2009-10]Status: DisposedITAT Delhi18 Apr 2016AY 2009-10

Bench: Sh. N. K. Saini, Am & Ms. Suchitra Kamble, Jm Ita No. 1137/Del/2014 : Asstt. Year : 2009-10 Deputy Commissioner Of Income Vs M/S Reebok India Co. Tax, Circle-15(1), C.R. Building, 530/1, 3&4, Village Bijwasan, I.P. Estate, New Delhi New Delhi-110061 (Appellant) (Respondent) Pan No. Aaacr3007K Assessee By : Sh. Ajay Vohra, Sr. Adv. & Neeraj Jain, Adv. Revenue By : Sh. Anand Kedia, Cit Dr Date Of Hearing : 21.01.2016 Date Of Pronouncement : 18.04.2016 Order Per N. K. Saini, Am:

For Appellant: Sh. Ajay Vohra, Sr. Adv. & Neeraj Jain, AdvFor Respondent: Sh. Anand Kedia, CIT DR
Section 143(1)Section 143(3)Section 92C

…a settled law that the Revenue cannot sit into the shoe of the assessee and decide what is prudent for the business. In this regard, we place reliance upon the decision of the Hon’ble Apex Court in the case of CIT, Bombay Vs. Walchand and Co. Private Ltd. in 65 ITR 381, wherein it was held that "in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively for business, the expenditure has to be adjudged from the point of view of the businessman and not of revenue". 14.13 We further note that it is on the basis of the same agreement the royalty was paid in earlie…

Frigoglass India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 1906/DEL/2015[2010-11]Status: DisposedITAT Delhi08 Apr 2016AY 2010-11

Bench: Shri S.V. Mehrotra & Shri Sudhanshu Srivastavaay: 2010-11 Frigoglas India Pvt. Ltd., Vs Dcit, Plot 26-A, Sector-3, Circle-9(2), Imt Manesar, New Delhi. Gurgaon. (Pan: Aaacf6804G) (Appellant) (Respondent) Appellant By: Shri Harpreet Singh, Adv. Shri Rophan Khare, Adv. Shri Gagandeep Nagpal, Ca Respondent By: Shri Amendra Kumar, Cit Dr Date Of Hearing: 11.01.2016 Date Of Pronouncement: 08.04.2016

For Appellant: Shri Harpreet Singh, AdvFor Respondent: Shri Amendra Kumar, CIT DR
Section 143(3)Section 92C

…Court is deciding a question under Section 12(2) of the Income Tax Act”. It was further held in this case that “it is not necessary to show that the expenditure was a profitable one or that in fact any profit was earned”. In CIT v. Walchand & Co. etc., (1967) 65 ITR 381, it was held by the Supreme Court that in applying the test of 23 I.T.A. 1906/D/2015 Assessment year: 2010-11 commercial expediency for determining whether the expenditure was wholly and exclusively laid out for the purpose of business, reasonableness of the expenditure has to be judged from the point of view of the businessman and not of the Rev…

Ingersoll Rand (India) Limited, Bangalore vs. DCIT, Bangalore

In the result, the assessee's appeal is partly allowed

ITA 272/BANG/2012[2004-05]Status: DisposedITAT Bangalore30 Mar 2016AY 2004-05

Bench: Shri Abraham P George & Shri Vijay Pal Rao

For Appellant: Shri K.R. Vasudevan, AdvocateFor Respondent: Mrs. S. Praveena, Addl. CIT (D.R)
Section 143(3)Section 263Section 80H

…in ITA 1863/Mum/2003 rendered in assessee’s own case deleting such adhoc disallowance. The assessee has also placed reliance on the decisions of the Hon’ble Supreme Court in the case of Commissioner of Income-tax, Bombay v. M/s. Walchand & Co. P. Ltd., (1967) 65 ITR 381 and Commissioner of Income-tax v. M/s. Edward Keventer P. Ltd., (1978) 115 ITR 149 and also on the judgment of the Hon’ble Delhi High Court in the case of Commissioner of Income-tax v. Dalmia Cement P. Ltd. (2002) (254 ITR 377). 22. We have considered the issue in the light of the above judgments and in the light of the ITAT order passed in assess…

Sh. Tarun Bansal, New Delhi vs. ITO, New Delhi

In the result appeal of the assessee is allowed partly

ITA 5893/DEL/2015[2011-12]Status: DisposedITAT Delhi09 Mar 2016AY 2011-12

Bench: Shri I.C.Sudhir & Shri O.P. Kantassessment Year: 2011-12

Section 133(6)Section 44A

…the money withdrawn any where else and secondly, the Revenue can not challenge the wisdom of the assessee to carry on the business in the manner he likes, relying on the judgement of the Hon’ble Supreme Court in the case of CIT Vs Walchand and Company pvt Ltd 65 ITR 381 and JK Woolen Manufactures Vs CIT reported in 72 ITR 612. Further he submitted that the case of the assessee was of no books of accounts and the return was filed u/s 44AD of the Act, the profit rate of 8% should have been applied in place of profit rate of 20% applied by the AO. The ld AR further submitted that the CIT(A) has not given any compara…

ACIT 19(2), Mumbai vs. Reliance Capital Partners, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 1024/MUM/2014[2009-10]Status: DisposedITAT Mumbai26 Feb 2016AY 2009-10

Bench: Shri B.R. Baskaran (Am) & Shri Ram Lal Negi (Jm)

For Appellant: Shri Jitendra SanghaviFor Respondent: Shri B.S. Bist (Sr. DR)
Section 40A(2)(b)

…Capital Partners not sit in the arms chair of the assessee and decide as to what expenditure has to be incurred by the assessee. The assessee also placed reliance on the following case laws in support of its contentions:- (a) CIT Vs. Walchand and Co. (P) Ltd (65 ITR 381)(SC) (b) J.K. Woollen Manufacturers Vs. CIT (72 ITR 612)(SC) (c) Aluminium Corporation of India Ltd Vs. CIT (86 ITR 11)(SC) (d) CIT Vs. Oracle India Pvt Ltd (11 Taxmann.com 139)(Delhi) (e) J.K. Industries Ltd Vs. CIT (11 Taxmann.com 72)(Cal) (f) Jamshedpur Motor Accessories Stores Vs. CIT (95 ITR 664)(Patna) (g) CIT Vs. Shree Panchaganga Sahakari…

Fibres & Fabrics International P Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Circel-11(3), Bangalore

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

ITA 1352/BANG/2014[2005-06]Status: DisposedITAT Bangalore10 Feb 2016AY 2005-06

Bench: Shri Vijaypal Rao & Shri Inturi Rama Raom/S.Fibres & Fabrics International Pvt. Ltd. No.21, E-1, 2Nd Phase, Peenya Industrial Area, Bangalore-560058. … Appellant Pan: Aaacf 6841 M Vs. Deputy Commissioner Of Income-Tax, Circle 11(3), Bangalore. … Respondent

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Smt.Neera Malhotra, CIT(DR)
Section 147Section 253Section 32(1)(ii)

…rt is deciding a question under Section 12(2) of the Income Tax Act". It was further held in this case that "it is not necessary to show that the expenditure was a profitable one or that in fact any profit was earned". InCIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381 (SC), it was held by the Supreme Court that in applying the test of commercial expediency for determining whether the expenditure was wholly and exclusively laid out for the purpose of business, reasonableness of the expenditure has to be judged from the point of view of the businessman and not of the Revenue. It was further observed that the rule…

N L C Nalco India Ltd Previously Known As Ondeo Nalco India Ltd., Kolkata vs. ACIT, Cir - 11, Kolkata

In the result, the appeal of assessee in ITA No

ITA 1256/KOL/2009[2004-05]Status: DisposedITAT Kolkata03 Feb 2016AY 2004-05

Bench: Shri Mahavir Singh, Jm& Shri Waseem Ahmed, Am]

For Appellant: Shri Soumitra Chowdhury, AdvocateFor Respondent: Shri D. Mallikarjuna &
Section 143(3)Section 36(1)(vii)

…value of an international transaction to nil when he was supposed to have determined the arm's length price of the international transaction. The Hon'ble High Court after examining the facts of the case held as under: "19…… In CIT v. Walchand& Co. etc. [1967] 65 ITR 381, it was held by the Supreme Court that in applying the test of commercial expediency for determining whether the expenditure was wholly and exclusively laid out for the purpose of business, reasonableness of the expenditure has to be judged from the point of view of the businessman and not of the Revenue. . . 14 ITA Nos.529/K/2008 & ITA No. 1256/…

Nlc Nalco India Ltd., Kolkata vs. ACIT, Circle - 11, Kolkata

In the result, the appeal of assessee in ITA No

ITA 529/KOL/2008[2003-04]Status: DisposedITAT Kolkata03 Feb 2016AY 2003-04

Bench: Shri Mahavir Singh, Jm& Shri Waseem Ahmed, Am]

For Appellant: Shri Soumitra Chowdhury, AdvocateFor Respondent: Shri D. Mallikarjuna &
Section 143(3)Section 36(1)(vii)

…value of an international transaction to nil when he was supposed to have determined the arm's length price of the international transaction. The Hon'ble High Court after examining the facts of the case held as under: "19…… In CIT v. Walchand& Co. etc. [1967] 65 ITR 381, it was held by the Supreme Court that in applying the test of commercial expediency for determining whether the expenditure was wholly and exclusively laid out for the purpose of business, reasonableness of the expenditure has to be judged from the point of view of the businessman and not of the Revenue. . . 14 ITA Nos.529/K/2008 & ITA No. 1256/…

DCIT 2(3), Mumbai vs. Urudavan Investment & Trading P.Ltd, Mumbai

In the result, the appeal of the Revenue is dismissed and the appeal of the assessee is also treated as dismissed for statistical purposes

ITA 6441/MUM/2014[2007-08]Status: DisposedITAT Mumbai16 Dec 2015AY 2007-08

Bench: Shri D. Karunakara Rao & Shri Sanjay Gargassessment Year: 2007-08 M/S. Urudavan Investment & The Commissioner Of Income Trading Pvt. Ltd., Tax-2, 209-210 2Nd Floor, Aayakar Bhavan, Vs. Arcadia Bldg., Mumbai 195, Nariman Point, Mumbai – 400 021 Pan: Aaacu 1353M (Appellant) (Respondent) Assessment Year: 2007-08 Dcit-2(3), M/S. Urudavan Investment & R.No.552, 5Th Floor, Trading Pvt. Ltd., Aayakar Bhavan, 209-210, Arcadia Bldg., Vs. M.K. Road, 195, Nariman Point, Mumbai – 400 020 Mumbai – 400 021 Pan: Aaacu 1353M (Appellant) (Respondent)

For Appellant: Shri Vijay Mehta, A.RFor Respondent: Shri G.M. Doss, D.R
Section 143(3)Section 263

…e income on the basis of assumptions and surmises, unless the same is established by the revenue beyond doubt. It is the businessman's concern how to run the business. This view is supported by a number of decisions some of them being Walchand & Co. Pvt. Ltd, 65 ITR 381 (SC), Dhawan Investment & Trading Co. Ltd, 100 Taxman 562 (Cal) etc. 6.7 The AO has cited the Supreme Court judgement in the case of Sumati Dayal (supra), which cannot be said to be applicable to the present case of the appellant. In that case Hon'ble Supreme Court laid down the principle of 'preponderance of probabilities'. This decision, instea…

Urudavan Investment and Trading P. Ltd, Mumbai vs. ACIT 2(3), Mumbai

In the result, the appeal of the Revenue is dismissed and the appeal of the assessee is also treated as dismissed for statistical purposes

ITA 2228/MUM/2012[2007-08]Status: DisposedITAT Mumbai16 Dec 2015AY 2007-08

Bench: Shri D. Karunakara Rao & Shri Sanjay Gargassessment Year: 2007-08 M/S. Urudavan Investment & The Commissioner Of Income Trading Pvt. Ltd., Tax-2, 209-210 2Nd Floor, Aayakar Bhavan, Vs. Arcadia Bldg., Mumbai 195, Nariman Point, Mumbai – 400 021 Pan: Aaacu 1353M (Appellant) (Respondent) Assessment Year: 2007-08 Dcit-2(3), M/S. Urudavan Investment & R.No.552, 5Th Floor, Trading Pvt. Ltd., Aayakar Bhavan, 209-210, Arcadia Bldg., Vs. M.K. Road, 195, Nariman Point, Mumbai – 400 020 Mumbai – 400 021 Pan: Aaacu 1353M (Appellant) (Respondent)

For Appellant: Shri Vijay Mehta, A.RFor Respondent: Shri G.M. Doss, D.R
Section 143(3)Section 263

…e income on the basis of assumptions and surmises, unless the same is established by the revenue beyond doubt. It is the businessman's concern how to run the business. This view is supported by a number of decisions some of them being Walchand & Co. Pvt. Ltd, 65 ITR 381 (SC), Dhawan Investment & Trading Co. Ltd, 100 Taxman 562 (Cal) etc. 6.7 The AO has cited the Supreme Court judgement in the case of Sumati Dayal (supra), which cannot be said to be applicable to the present case of the appellant. In that case Hon'ble Supreme Court laid down the principle of 'preponderance of probabilities'. This decision, instea…

DCIT, Circle - 8, Kolkata vs. M/S. E.I.H. Ltd., Kolkata

In the result, the appeal of the revenue in ITA NO

ITA 2182/KOL/2006[2003-04]Status: DisposedITAT Kolkata09 Dec 2015AY 2003-04

Bench: : Shri M. Balaganesh

For Appellant: Shri R.N Bajoria, Sr.Advocate &For Respondent: Shri Rajat Subhra Biswas, ld.CIT/DR
Section 143(3)Section 195Section 40Section 9(1)(vii)

…egard is placed on the decision of the Hon’ble Supreme Court in the case of CIT vs Dhanraj Girji Raja Narasingherji (1973) 91 ITR 544 (SC). Further reliance is also placed on the decision of the Hon’ble Apex Court in the case of CIT vs Walchand and Co. (1967) 65 ITR 381 (SC) wherein it was held that in applying the test of commercial expediency whether the expenditure was excessively laid down for the purpose of business, reasonableness of the expenditure is to be judged from the point of view of a businessman and not that of the revenue. It is well decided that what is to be seen for the purpose of allowability…

ACIT, New Delhi vs. Smt. Harish Mohini Kathuria, New Delhi

In the result, the appeal filed by the Revenue is dismissed

ITA 6387/DEL/2013[2007-08]Status: DisposedITAT Delhi21 Oct 2015AY 2007-08

Bench: Shri N.K. Saini & Smt. Beena Pillaiacit, Vs Harish Mohini Kathuria, Circle 26(1), 191, Nangil Sakarwati, New Delhi. Najafgarh, New Delhi. Aajpk5044M Appellant By Shri S.K. Jain, Sr. Dr Respondent By Shri Shalender K. Bajaj, Ca

Section 143(2)

…ly on adhoc basis. It is a settled law that addition based upon surmises and conjectures cannot be sustained. 11. In this regard we placed reliance upon the decision of the Hon’ble Supreme Court in the case of CIT (Bom.) vs. Walchand & Company Pvt. Limited in 65 ITR 381, wherein it was held that “in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively for business, the expenditure has to be adjudged from the point of view of the businessman and not of revenue. Thus, we find that Assessing Officer has made the disallowance purely on guess work and without cog…

M/S Herbalife International India Pvt. Ltd., Bangalore vs. ACIT

In the result, IT(TP)A No

ITA 184/BANG/2013[2008-09]Status: DisposedITAT Bangalore09 Oct 2015AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Jason P Boaz

For Appellant: Shri Rajan Vora, CAFor Respondent: Shri Anurag Sahay, CIT(DR)
Section 143(3)Section 32(1)(ii)Section 40A(2)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI JASON P BOAZ, ACCOUNTANT MEMBER IT(TP)A No.1679/Bang/2012 (Assessment year: 2008-09) and IT(TP)A No.184/Bang/2013 (Assessment year: 2008-09) M/s.Herbalife International India Pvt. Ltd. No.14, Vaswani Wilshire, Commissariat Road, Bangalore-56025. … Appellant PAN: AAACH 8025 R Vs. Asst. Commissioner of Income-tax, Circle 11(4), Bangalore. … Respondent Appellant by: Shri Rajan Vora, CA. Respondent by: Shri Anurag Sahay, CIT(DR). Date of hearing : 01/09/2015 Date of pronouncement: 09/10/2015 O R D E R…