CIT v. Walchand & Co.

Bses Rajdhani Power Ltd., New Delhi vs. ACIT, New Delhi

The appeal is partly allowed

Bench: Shri I.C. Sudhir & Shri Inturi Rama Rao Assessment Year : 2005-06 Bses Rajdhani Power Ltd., Vs. Assistant Cit, Bses Bhawan, Nehru Place, Circle-3(1), New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent) Assessment Year: 2005-06 Deputy Cit, Vs. Bses Rajdhani Power Ltd., Circle 3(1), Bses Bhavan, Nehru Place, New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent) Assessment Year : 2006-07 Bses Rajdhani Power Ltd., Vs. Assistant Cit, Bses Bhawan, Nehru Place, Circle-3(1), New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent) Assessment Year: 2006-07 Deputy Cit, Vs. Bses Rajdhani Power Ltd., Circle 3(1), Bses Bhavan, Nehru Place, New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent)

…reasonableness of the expenditure has to be adjudged from the point of view of the businessman, and not of the Revenue. 36.19 In support of above submissions, the Learned AR placed reliance on the following decisions: - CIT vs. Walchand and Co. Private Ltd.: 65 ITR 381 (SC) - J.K. Woollen Manufacturers vs. CIT: U.P: 72 ITR 612 (SC) - Aluminium Corpn. of India Ltd. vs. CIT: 86 ITR 11 (SC ) - CIT vs. United Hotels Ltd.: 177 Taxman 417 (Delhi) - CIT vs S. Krishna Rao : 76 ITR 664 (AP) - CIT v. Udaipur Distillery Co. Ltd: 316 ITR 426 (Raj. HC) - ACIT vs. Doon Valley Motors: 10 SOT 525 (Del Tr.) - Hero Motor Corp Ltd…

CIT vs. Titan Securities Ltd

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…ooked at only the evidence adduced by the assessee and has not adverted to the attempts made by the assessing officer in the course of the assessment proceedings to examine the evidence and discredit the same in CIT v. Walchand And Co. Private Ltd., (1967) 65 ITR 381 the Supreme Court held as under: - “It is necessary to emphasize that, though the Tribunal is not a court, it is invested with judicial power to be exercised in manner similar to the exercise of power of an appellate court acting under the Code of Civil Procedure. Authority to “pass such orders thereon as it thinks fit” in section 33(4) of…

CIT vs. Titan Securities Ltd

…ooked at only the evidence adduced by the assessee and has not adverted to the attempts made by the assessing officer in the course of the assessment proceedings to examine the evidence and discredit the same in CIT v. Walchand And Co. Private Ltd., (1967) 65 ITR 381 the Supreme Court held as under: - “It is necessary to emphasize that, though the Tribunal is not a court, it is invested with judicial power to be exercised in manner similar to the exercise of power of an appellate court acting under the Code of Civil Procedure. Authority to “pass such orders thereon as it thinks fit” in section 33(4) of…

Commissioner of Income Tax vs. Samsung India Electronics Ltd

In the result, all the three appeals filed by the revenue are dismissed with

…d to the benefit of another entity does not entitle the income tax authorities to disallow a part of the expenditure. In coming to the aforesaid conclusion the Tribunal relied on the following judgments : (i) CIT Vs. Walchand and Co. Private Ltd. (1967) 65 ITR 381 (ii) CIT Vs. Dalmia Cement (B) Ltd. (2002) 254 ITR 377 (Del.) (iii) Sassoon J. David and Co. (P)Ltd. Vs. CIT (1979) 118 ITR 261 (SC) On this basis the Tribunal allowed the assessee‟s appeal and dismissed the appeal filed by the revenue with the result that the entire expenditure of `6,93,81,635/- stood allowed. 2012:DHC:5445-DB ITA No…

CIT vs. Cti Shipbroker India Pvt Ltd

…necds to be looked inttt .fi'ont the poirt of t,ietri oJ'the orrursnu and not fi.om the poinl o.f viev, of revenue 'only. "'I'his tpis so helcl by Sttltreme Court in the decisions of CIT' tts' CI'I I g 2012:DHC:9783-DB "i --. a wcilchcrncl & co. (P) Ltct. 65 ITR 381 and J.K. Woolen Marutfactutrers \)s. CIT' 72 I|'R 6I'2. Reventrc hcts rctisecl in its grouncls of appeal that the erytcnse to qttestiotx l.t)(ts hit by seclion 36 (1) (ii) also. LVe do rtot ttgree tvith this sectiort 36 (1) (ii) prottides thltt cottt-tttission v'ill not bc ullowecl as clcduction if ha:d it not been paid so. It tvould be paid as pr…

CIT vs. Ekl Appliances Ltd

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

…question under Section 12(~) ~fthe Income Tax Act". It was further held in this case that "it is P!o( necessary to show that the . ' , ' expenditure was . a profitable one or th~t in fact any profit was earned''. In CITv. W~.lch@nd & Co. e~c.,~ (1967) 65 ITR 381, it was held by the Supreme Court that in apply~ng the test of commercial ' . ' ITA Nos.l068 & 1070/2011 ~. ' --·~-·~~··--~·--~-~-·-· < :---:~"~·:----.-!- o~.• ·-• • Page 20 of25 :•n •- .. ..,·· ~?' expediency for determining whether the e~penditure was wholly and exclusively laid out for the purpose o1; b~1siness, reasonableness o…

CIT vs. Ekl Appliances Ltd

…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 commercial 2012:DHC:2201-DB ITA Nos.1068 & 1070/2011 Page 21 of 25 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…

CIT vs. Siddartha Trade Links Pvt Ltd

Bench: Us. 3. The First Issue Pertains To Addition Of Rs. 31,26,718/- On Account Of Failure Of The Assessee To Show Justification & Explain The Nature Of Cash Discount. This Addition Was Made By The Assessing Officer Recording The Following Reasons:-

…been duly explained. It is a settled law that revenue authorities cannot sit into the shoe of the businessman. 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”. Accordingly, we hold that assessee has duly established that sufficient services were render…

Commissioner of Income Tax vs. M/S Oracle India Pvt. Ltd

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

…-” O * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA No.383 of 2009 with ITA No.987 of 2010 ITA No.1242 of 2010 ITA No.1247 of 2010 RESERVED ON: JANUARY 24, 2010 % PRONOUNCED On: MARCH 30, 2011 1) ITA No.1242 of 2010 COMMISSIONER OF INCOME TAX through : VERSUS M/s. ORACLE INDIA PVT. LTD. through: 2) ITA No.1247 of 2010 COMMISSIONER OF INCOME TAX through : VERSUS M/s. ORACLE INDIA PVT. LTD. through: 3) ITA No.987 of 2010 COMMISSIONER OF INCOME TAX through : ITA Nos.987, 1242, 1247/2010 Signatui Verified fs, ’ i vic ... Appellant Ms. Prem Lata Bansal, Sr. Standing Counsel. . . .Respondent Mr. M.S…

The Commissioner of Income Tax vs. M/S Oracle India Pvt. Ltd

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

…ITA No.383 of 2009 Page 1 of 19 REPORTABLE * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA No.383 of 2009 with ITA No.987 of 2010 ITA No.1242 of 2010 ITA No.1247 of 2010 RESERVED ON: JANUARY 24, 2010 % PRONOUNCED On: MARCH 30, 2011 1) ITA No.383 of 2009 COMMISSIONER OF INCOME TAX . . . Appellant through : Ms. Prem Lata Bansal, Sr. Standing Counsel. VERSUS M/s. ORACLE INDIA PVT. LTD. . . .Respondent through: Mr. M.S. Syali, Sr. Advocate with Ms. Mahua Kalra,…

CIT vs. Rice India Exports Ltd

The appeals are dismissed in limine

Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE MANMOHAN

…es, in our opinion the addition on account of substitution of purchase price by the revenue is not justified. 6.4 In this regard, we draw support from 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”. 5. Keeping in view the aforesaid factual findings by ITAT, which is the final fact findi…

CIT vs. Rice India Exports Pvt Ltd

The appeals are dismissed in limine

Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE MANMOHAN

…es, in our opinion the addition on account of substitution of purchase price by the revenue is not justified. 6.4 In this regard, we draw support from 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”. 5. Keeping in view the aforesaid factual findings by ITAT, which is the final fact findi…

Income Tax vs. Of India Pvt. Ltd

In the result, the appeal is dismissed

…fulfill or discharge a legal obligation. See: (i) Jugal Kishore Baldev Sahai v. CIT : AIR 1967 SC 495; (ii) Sri Venkata Satyanarayana Rice Mill Contractors Co v. CIT, AP-II: (1996) 6 SCC 611; (iii) CIT v. Walchand & Co. Pvt. Ltd : AIR 1967 SC 1435 = 65 ITR 381; (iv) M/s Sassoon J. David & Co. Pvt Ltd v. CIT Bombay : 1979 (3) SCC 524; (v) The CIT, West Bengal v. Birla Cotton Spinning & Weaving Mills & Another : (1971) 3 SCC 344 (vi) SA Builders Ltd v. CIT ; 2007 (1) SCC 781. 8.5 Keeping in mind the aforesaid test, let us examine the facts of the present case. 2008:DHC:2423-DB…