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 367,735 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.

ACIT, CC- 1, New Delhi vs. Sahara India Commercial Corp. Ltd., Kolkata

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 5504/DEL/2017[2012-13]Status: DisposedITAT Delhi23 Dec 2025AY 2012-13

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…rowed funds were in fact utilized for the business purposes. There is no dispute to the settle position as envisaged by the Hon’ble Apex Court in various decisions including DCIT vs. Core Health Care Ltd., 298 ITR 194 (SC); CIT vs. Walchand & Company P. Ltd., 65 ITR 381; J.K. Woollen Manufacturers vs. CIT, 72 ITR 612; & SA Builders Ltd. vs CIT 288 ITR 1. However, in the first-place onus is on the assessee to show that the interest- bearing funds were advanced for business purposes and for commercial expediency. Thus, in light of uncontroverted findings of the First Appellate Authority, we see no reason to interfe…

ACIT, Central Circle-1, New Delhi vs. Sahara India Commercial Corp. Ltd, Lucknow

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 4855/DEL/2017[2010-11]Status: DisposedITAT Delhi23 Dec 2025AY 2010-11

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…rowed funds were in fact utilized for the business purposes. There is no dispute to the settle position as envisaged by the Hon’ble Apex Court in various decisions including DCIT vs. Core Health Care Ltd., 298 ITR 194 (SC); CIT vs. Walchand & Company P. Ltd., 65 ITR 381; J.K. Woollen Manufacturers vs. CIT, 72 ITR 612; & SA Builders Ltd. vs CIT 288 ITR 1. However, in the first-place onus is on the assessee to show that the interest- bearing funds were advanced for business purposes and for commercial expediency. Thus, in light of uncontroverted findings of the First Appellate Authority, we see no reason to interfe…

Sahara India Commercial Corp. Ltd., Kolkata vs. ACIT, CC- 1, New Delhi

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 4731/DEL/2017[2014-15]Status: DisposedITAT Delhi23 Dec 2025AY 2014-15

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…rowed funds were in fact utilized for the business purposes. There is no dispute to the settle position as envisaged by the Hon’ble Apex Court in various decisions including DCIT vs. Core Health Care Ltd., 298 ITR 194 (SC); CIT vs. Walchand & Company P. Ltd., 65 ITR 381; J.K. Woollen Manufacturers vs. CIT, 72 ITR 612; & SA Builders Ltd. vs CIT 288 ITR 1. However, in the first-place onus is on the assessee to show that the interest- bearing funds were advanced for business purposes and for commercial expediency. Thus, in light of uncontroverted findings of the First Appellate Authority, we see no reason to interfe…

Sahara India Commercial Corp. Ltd., Kolkata vs. ACIT, CC- 1, New Delhi

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 4730/DEL/2017[2013-14]Status: DisposedITAT Delhi23 Dec 2025AY 2013-14

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…rowed funds were in fact utilized for the business purposes. There is no dispute to the settle position as envisaged by the Hon’ble Apex Court in various decisions including DCIT vs. Core Health Care Ltd., 298 ITR 194 (SC); CIT vs. Walchand & Company P. Ltd., 65 ITR 381; J.K. Woollen Manufacturers vs. CIT, 72 ITR 612; & SA Builders Ltd. vs CIT 288 ITR 1. However, in the first-place onus is on the assessee to show that the interest- bearing funds were advanced for business purposes and for commercial expediency. Thus, in light of uncontroverted findings of the First Appellate Authority, we see no reason to interfe…

Sahara India Commercial Corp. Ltd., Kolkata vs. ACIT, CC- 1, New Delhi

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 4729/DEL/2017[2012-13]Status: DisposedITAT Delhi23 Dec 2025AY 2012-13

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…rowed funds were in fact utilized for the business purposes. There is no dispute to the settle position as envisaged by the Hon’ble Apex Court in various decisions including DCIT vs. Core Health Care Ltd., 298 ITR 194 (SC); CIT vs. Walchand & Company P. Ltd., 65 ITR 381; J.K. Woollen Manufacturers vs. CIT, 72 ITR 612; & SA Builders Ltd. vs CIT 288 ITR 1. However, in the first-place onus is on the assessee to show that the interest- bearing funds were advanced for business purposes and for commercial expediency. Thus, in light of uncontroverted findings of the First Appellate Authority, we see no reason to interfe…

Sahara India Commercial Corp. Ltd., Kolkata vs. ACIT, CC- 1, New Delhi

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 4728/DEL/2017[2010-11]Status: DisposedITAT Delhi23 Dec 2025AY 2010-11

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…rowed funds were in fact utilized for the business purposes. There is no dispute to the settle position as envisaged by the Hon’ble Apex Court in various decisions including DCIT vs. Core Health Care Ltd., 298 ITR 194 (SC); CIT vs. Walchand & Company P. Ltd., 65 ITR 381; J.K. Woollen Manufacturers vs. CIT, 72 ITR 612; & SA Builders Ltd. vs CIT 288 ITR 1. However, in the first-place onus is on the assessee to show that the interest- bearing funds were advanced for business purposes and for commercial expediency. Thus, in light of uncontroverted findings of the First Appellate Authority, we see no reason to interfe…

Sahara India Commercial Corpn. Ltd., Kolkata vs. ACIT, New Delhi

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 2795/DEL/2017[2011-12]Status: DisposedITAT Delhi23 Dec 2025AY 2011-12

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…rowed funds were in fact utilized for the business purposes. There is no dispute to the settle position as envisaged by the Hon’ble Apex Court in various decisions including DCIT vs. Core Health Care Ltd., 298 ITR 194 (SC); CIT vs. Walchand & Company P. Ltd., 65 ITR 381; J.K. Woollen Manufacturers vs. CIT, 72 ITR 612; & SA Builders Ltd. vs CIT 288 ITR 1. However, in the first-place onus is on the assessee to show that the interest- bearing funds were advanced for business purposes and for commercial expediency. Thus, in light of uncontroverted findings of the First Appellate Authority, we see no reason to interfe…

DCIT, New Delhi vs. M/S. Sahara India Commercial Corporation Ltd., Kolkata

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 2620/DEL/2013[2009-10]Status: DisposedITAT Delhi23 Dec 2025AY 2009-10

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…rowed funds were in fact utilized for the business purposes. There is no dispute to the settle position as envisaged by the Hon’ble Apex Court in various decisions including DCIT vs. Core Health Care Ltd., 298 ITR 194 (SC); CIT vs. Walchand & Company P. Ltd., 65 ITR 381; J.K. Woollen Manufacturers vs. CIT, 72 ITR 612; & SA Builders Ltd. vs CIT 288 ITR 1. However, in the first-place onus is on the assessee to show that the interest- bearing funds were advanced for business purposes and for commercial expediency. Thus, in light of uncontroverted findings of the First Appellate Authority, we see no reason to interfe…

Sahara India, Kolkata vs. DCIT, New Delhi

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 1977/DEL/2013[2009-10]Status: DisposedITAT Delhi23 Dec 2025AY 2009-10

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…rowed funds were in fact utilized for the business purposes. There is no dispute to the settle position as envisaged by the Hon’ble Apex Court in various decisions including DCIT vs. Core Health Care Ltd., 298 ITR 194 (SC); CIT vs. Walchand & Company P. Ltd., 65 ITR 381; J.K. Woollen Manufacturers vs. CIT, 72 ITR 612; & SA Builders Ltd. vs CIT 288 ITR 1. However, in the first-place onus is on the assessee to show that the interest- bearing funds were advanced for business purposes and for commercial expediency. Thus, in light of uncontroverted findings of the First Appellate Authority, we see no reason to interfe…

Instakart Services Private Limited, Bangalore vs. ACIT, Special Range-3, Bangalore

In the result appeal of the Revenue is hereby dismissed

ITA 544/BANG/2025[2017-18]Status: DisposedITAT Bangalore18 Dec 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Ajay Vohra, Sr. Advocate and Ms. AnkitaFor Respondent: Shri Shivanad Kalakeri, CIT

…st be judged from the viewpoint of the businessman, and not from the Revenue. Even if an expense does not result in immediate profit, it is deductible if incurred for promoting business or protecting future growth. The Hon’ble Supreme Court in Walchand & Co. (65 ITR 381) and Sassoon J. David & Co. (118 ITR 261) has held that “wholly and exclusively” does not mean “necessarily,” and that it is for the assessee . ITA No.330,331,496,543 &544/Bang/2024 S.A No.25/Bang/2025 Page 9 of 46 to decide the manner in which business is carried on. Therefore, the losses incurred in the initial years, arising from the asses…

Instakart Services Private Limited, Bangalore vs. JCIT, Special Rang-3, Bangalore

In the result appeal of the Revenue is hereby dismissed

ITA 543/BANG/2025[2016-17]Status: DisposedITAT Bangalore18 Dec 2025AY 2016-17

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Ajay Voh

…st be judged from the viewpoint of the businessman, and not from the Revenue. Even if an expense does not result in immediate profit, it is deductible if incurred for promoting business or protecting future growth. The Hon’ble Supreme Court in Wa/chand & Co. (65 ITR 381) and Sassoon J. David & Co. (118 ITR 261) has held that “wholly and exclusively” does not mean “necessarily,” and that it is for the assessee ITA No.330,331,496,543 &544/Bang/2024 S.A No.25/Bang/2025 Page 9 of 46 to decide the manner in which business is carried on. Therefore, the losses incurred in the initial years, arising from the assessee…

DCIT CC -1(4), Bengaluru vs. Instakart Services Pvt Ltd, Bengaluru

In the result appeal of the Revenue is hereby dismissed

ITA 531/BANG/2025[2018-19]Status: DisposedITAT Bangalore18 Dec 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Ajay Voh

…st be judged from the viewpoint of the businessman, and not from the Revenue. Even if an expense does not result in immediate profit, it is deductible if incurred for promoting business or protecting future growth. The Hon’ble Supreme Court in Wa/chand & Co. (65 ITR 381) and Sassoon J. David & Co. (118 ITR 261) has held that “wholly and exclusively” does not mean “necessarily,” and that it is for the assessee ITA No.330,331,496,543 &544/Bang/2024 S.A No.25/Bang/2025 Page 9 of 46 to decide the manner in which business is carried on. Therefore, the losses incurred in the initial years, arising from the assessee…

DCIT, CC-1(4), Bengaluru vs. Instakart Services Pvt Ltd, Bengaluru

In the result appeal of the Revenue is hereby dismissed

ITA 530/BANG/2025[2017-18]Status: DisposedITAT Bangalore18 Dec 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Ajay Voh

…st be judged from the viewpoint of the businessman, and not from the Revenue. Even if an expense does not result in immediate profit, it is deductible if incurred for promoting business or protecting future growth. The Hon’ble Supreme Court in Wa/chand & Co. (65 ITR 381) and Sassoon J. David & Co. (118 ITR 261) has held that “wholly and exclusively” does not mean “necessarily,” and that it is for the assessee ITA No.330,331,496,543 &544/Bang/2024 S.A No.25/Bang/2025 Page 9 of 46 to decide the manner in which business is carried on. Therefore, the losses incurred in the initial years, arising from the assessee…

Instakart Services Private Limited, Bengaluru vs. ACIT, Central Circle-1(4), Bengaluru

In the result appeal of the Revenue is hereby dismissed

ITA 496/BANG/2025[2018-19]Status: DisposedITAT Bangalore18 Dec 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Ajay Voh

…st be judged from the viewpoint of the businessman, and not from the Revenue. Even if an expense does not result in immediate profit, it is deductible if incurred for promoting business or protecting future growth. The Hon’ble Supreme Court in Wa/chand & Co. (65 ITR 381) and Sassoon J. David & Co. (118 ITR 261) has held that “wholly and exclusively” does not mean “necessarily,” and that it is for the assessee ITA No.330,331,496,543 &544/Bang/2024 S.A No.25/Bang/2025 Page 9 of 46 to decide the manner in which business is carried on. Therefore, the losses incurred in the initial years, arising from the assessee…

Kasturi Medical Centre Private Limited, Joka, Thakurpukur vs. Additional/Joint/Deputy/Assisstant Commissioner of Income Tax/Income-Tax Officer, Delhi

In the result the appeal of the assessee is allowed

ITA 318/KOL/2025[2018-19]Status: DisposedITAT Kolkata12 Dec 2025AY 2018-19

Bench: Shri Manunatha G & Shri Sonjoy Sarmai.T.A. No.318/Kol/2025 Assessment Year: 2018-19 Kasturi Medical Centre Pvt. Ltd……………….................................……….…Appellant 5, Diamond Harbour Road, 3A Bus Stand, Joka, Thakurpukur, W.B – 700104. [Pan: Aacck1872F] Vs. Acit, Nfac, Delhi…….…………..…………….…..….......……..…...…..…..Respondent Appearances By: Shri Indernil Banerjee, Fca, Appeared On Behalf Of The Revenue. Shri Soumitra Ghosh, Sr. Dr, Appeared On Behalf Of The Assessee. Date Of Concluding The Hearing : September 16, 2025 Date Of Pronouncing The Order : December 12, 2025 Order Per Sonjoy Sarma: This Appeal Is Filed By The Assessee Against The Order Of The Learned Cit(A) Passed For The Assessment Year 2018–19, Whereby The Addition Of ₹85,40,911 Made By The Assessing Officer On Estimated Basis After Rejection Of Books Of Account Under Section 145(3) Of The Income-Tax Act, 1961 Was Confirmed. 2. Brief Facts Of The Case Are That The Assessee Filed Its Return Of Income For Ay 2018–19 Declaring Total Income Of ₹2,05,59,220. The Case Was Selected For Complete Scrutiny Under The Scrutiny Assessment Scheme, 2019, Primarily On The Issue Of Large Refund Claimed Out Of Advance Tax. Accordingly, Notices Under Section 143(2) & Section 142(1) Of The Act Along With Questionnaires Were Duly Issued & Served.

Section 142(1)Section 143(2)Section 145(3)

…ingenuity or sham expenditure has been established and Assessing Officer passed the assessment order on conjecture and surmises without properly verifying the evidences submitted by the assessee. The Hon'ble Supreme Court in CIT Walchand & Co. (P) Ltd (1967) 65 ITR 381 (SC), J.K. Woollen Manufacturers CIT (1969) 72 ITR 612 (SC) and CIT v Panipat Woollen & General Mills Co. Lal (1976) 103 ITR 66 (SC) held that so long as the expenditure is real and incurred for business purposes, the Department cannot substitute its own wisdom to determine what is "reasonable." This doctrine has been reaffirmed in SA. Builders La…

Aditi Thapar, Vadodara vs. The Dy.CIT, Circle-1(1)(1), Vadodara

In the result, the appeal of the assessee is allowed for statistical purposes, and the matter is restored to the file of the CIT(Appeals) for de- novo adjudication in the interest of justice

ITA 1273/AHD/2025[2014-15]Status: DisposedITAT Ahmedabad06 Nov 2025AY 2014-15

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Parin Shah, ArFor Respondent: Shri Rameshwar P Meena, Sr. DR
Section 234ASection 271(1)(c)Section 68Section 69Section 69ASection 69C

…r any independent reasoning provided to sustain or reject them. The absence of such findings renders the order non-speaking and violative of the principles of natural justice as enunciated by the Hon’ble Supreme Court in CIT v. Walchand & Co. Pvt. Ltd. [1967] 65 ITR 381 (SC), which held that every judicial or quasi-judicial order must be supported by reasons reflecting proper application of mind. Considering the totality of the facts and circumstances, we deem it appropriate to set aside the impugned order passed by the CIT(Appeals) and restore the matter to his file for de-novo consideration. The CIT(Appeals) sh…

Alka Khandaka, Jaipur vs. Income Tax Officer Ward 1(2), Jaipur

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

ITA 1014/JPR/2025[2017-2018]Status: DisposedITAT Jaipur16 Oct 2025AY 2017-2018

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. Sauravh Harsh, AdvFor Respondent: Mrs. Anita Rinesh, JCIT
Section 131Section 142(1)Section 143(2)Section 143(3)Section 44ASection 68

…preme Court in CIT v. Calcutta Discount Co. Ltd. (1973) 91 ITR 8 (SC), para 11 held that general and vague grounds of appeal which do not specify the error in the order under challenge are not maintainable. Similarly, in CIT v. Walchand & Co. Pvt. Ltd. (1967) 65 ITR 381 (SC), para 16, the Court observed that unless a finding of fact is shown to be perverse or unsupported by material, it cannot be interfered with. In the present case, the Ld. CIT(A) has passed a reasoned, self-speaking order after considering the assessee’s submissions, the evidence produced, and the report of the Commercial Tax Department. The a…

Govindam Brj Infra Projects Private Limited, Jaipur vs. ACIT/DCIT Cir-6, Jpr, Jaipur

The appeals of the assessee are allowed

ITA 1115/JPR/2025[2018-19]Status: DisposedITAT Jaipur15 Oct 2025AY 2018-19
For Appellant: Shri Deepak Somani, C.AFor Respondent: Shri Gaurav Awasthi, JCIT
Section 143(3)Section 145(3)Section 234ASection 234BSection 250Section 270A(1)Section 271Section 44A

…borers and even they hesitate to receive payment of wages through banking channel. It is settled law that addition based upon surmises and conjectures cannot be sustained. The Hon'ble Supreme Court in the case of CIT (Bom.) vs. Walchand & Company Pvt. Ltd. in 65 ITR 381 (SC) 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 cogent reason…

Govindam Brj Infra Projects Private Limited, Jaipur vs. ACIT/DCIT Cir-6, Jpr, Jaipur

The appeals of the assessee are allowed

ITA 1114/JPR/2025[2017-18]Status: DisposedITAT Jaipur15 Oct 2025AY 2017-18

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

For Appellant: Shri Deepak Somani, C.AFor Respondent: Shri Gaurav Awasthi, JCIT
Section 143(3)Section 145(3)Section 234ASection 234BSection 250Section 270A(1)Section 271Section 44A

…Govindam Brj Projects Pvt. Ltd., Jaipur. payment of wages through banking channel. It is settled law that addition based upon surmises and conjectures cannot be sustained. The Hon’ble Supreme Court in the case of CIT (Bom.) vs. Walchand & Company Pvt. Ltd. in 65 ITR 381 (SC) 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 cogent reason…

Deputy Commissioner of Income Tax, Circle-1(1), New Delhi, Delhi vs. Anand Nvh Products Pvt Ltd, Delhi

ITA 3612/DEL/2024[2016-17]Status: DisposedITAT Delhi26 Sept 2025AY 2016-17

Bench: Shri Yogesh Kumar U.S. & Shri Avdhesh Kumar Mishra

Section 35

…ame has been explained by the appellant. Case laws relied upon by the appellant are directly applicable in the case. 1. Hon'ble Delhi High Court in CIT v. Dalmia Cement (P.) Ltd [Del. HC] [2002] 121 Taxman 706 (Delhi) 2. CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381 (SC) 3. J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC), 4. Aluminium Corpn. of India Ltd. v. CIT [1972]86 ITR 11 (SC) 5. CIT v. Panipat Woollen & General Mills Co. Ltd. [1976] 103 ITR 66 (SC) 6. Punjab & Haryana High Court in Jamna Auto Industries [2008] 167 Taxman 192 (Punjab & Haryana) Considering the above discussion and case laws relied upon…